Big three credit rating agency Moody’s warned Friday that the United States could be close to losing its perfect AAA credit rating.
Following the market’s close on Friday, Moody’s changed its outlook on U.S. debt to negative.
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability,” Moody’s said in a statement.
The U.S. government publicly disagreed with the statement, saying that “the American economy remains strong, and Treasury securities are the world’s preeminent safe and liquid asset.”
