Close Menu
    Trending
    • Pavel Durov’s Arrest: A Warning for Western Freedom
    • Brad Pitt Gets Real About Making ‘Mistakes’ And Learning From It
    • Survivor of Air India crash jumped out of emergency exit, police say
    • Air India crash refuels Boeing and airline’s problems | Aviation News
    • Dak Prescott has strong message about George Pickens concerns
    • Elections: Don’t mess with vote by mail
    • Mattel, OpenAI Sign Deal to Bring ChatGPT to ‘Iconic’ Toys
    • Why does the King have two birthdays?
    The Daily FuseThe Daily Fuse
    • Home
    • Latest News
    • Politics
    • World News
    • Tech News
    • Business
    • Sports
    • More
      • World Economy
      • Entertaiment
      • Finance
      • Opinions
      • Trending News
    The Daily FuseThe Daily Fuse
    Home»World Economy»Bessent Disagrees On US Credit Downgrade
    World Economy

    Bessent Disagrees On US Credit Downgrade

    The Daily FuseBy The Daily FuseMay 22, 2025No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Bessent Disagrees On US Credit Downgrade
    Share
    Facebook Twitter LinkedIn Pinterest Email


    US Treasury Secretary Scott Bessent rebuked Moody’s lowered ranking of US credit score from AAA to AA1. “Initially, I believe that Moody’s is a lagging indicator, and I believe that’s what everybody thinks of credit score companies,” Bessent stated. “Larry Summers and I don’t agree on the whole lot, however he’s stated that after they downgraded the U.S. in 2011. So it’s a lagging indicator.”

    The US Treasury Secretary should keep that the nation’s financial system is in sound well being. Former Treasury Secretary Janet Yellen voiced comparable sentiments final 12 months when Fitch downgraded the US credit score, calling the transfer “arbitrary.” “I strongly disagree with Fitch’s choice. The change introduced at present is unfair and based mostly on outdated knowledge,” Yellen insisted. She then went on to insist the federal authorities had the funds to again two wars in Ukraine and Palestine, as there isn’t any spending restrict for governments.

    In 2011, Normal & Poor minimize its ranking additionally after a debt ceiling disaster brought on by politicians. The worldwide markets felt the affect of that information. Fitch has been warning of a doable downgrade since Might 2023, as a result of large debt burden and political mismanagement. The White Home continued its spending spree and our legislators couldn’t agree on a restrict for the debt ceiling. The warnings had been there.

    The distinction this time is that Moody’s has not downgraded US credit score since 1917. The difficulty isn’t shopper confidence within the US and even investor confidence. The first concern is CONFIDENCE within the system itself that has clearly been failing. Over 70% of US debt is short-term, and Washington has been unable to go or adhere to a price range. The Democrats are saying that that is cause to gather extra tax income, whereas the Republicans goal to curb authorities spending. Each fail to appreciate that they’re too late both manner, and the system itself should change as a result of the issue can’t be fastened with the identical line of pondering that created this catastrophe within the first place.

    Capital isn’t going to flee the US due to Moody’s downgrade. The place else would it not go?

    Rankings companies are certainly reactionary relatively than proactive. The debt disaster has been looming for a very long time. The Financial Confidence Mannequin turns once more in late 2026, and we’re watching the start of the tip for presidency debt as a reliable asset class.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    The Daily Fuse
    • Website

    Related Posts

    Market Talk – June 12, 2025

    June 12, 2025

    The Deporter-in-Chief – Barack Obama

    June 12, 2025

    May CPI – Vance Angered By Powell

    June 12, 2025

    US To Take Ukraine Off Payroll

    June 12, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    US PGA Championship 2025: Scottie Scheffler wins third major title | Golf News

    May 19, 2025

    12,000 Masked and Armed “Anti” Fascists Attack AfD Convention in Germany, Assault Candidate Alice Weidel’s Limousine As She Rode to Convention Days After Elon Musk Interview | The Gateway Pundit

    January 12, 2025

    JUST IN: Mexican Cartel Leader with $1 Million US Bounty on His Head Killed in Sinaloa | The Gateway Pundit

    May 24, 2025

    Fossil Fuel Car Ban BLOCKED

    May 5, 2025

    Russia urges restraint on all sides over Iran’s nuclear programme

    April 4, 2025
    Categories
    • Business
    • Entertainment News
    • Finance
    • Latest News
    • Opinions
    • Politics
    • Sports
    • Tech News
    • Trending News
    • World Economy
    • World News
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • About us
    • Contact us
    Copyright © 2024 Thedailyfuse.comAll Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.