Credit rating group Moody\u2019s has warned on the US fiscal outlook, saying President Donald Trump\u2019s trade tariffs could hamper the country\u2019s ability to cope with a growing debt pile and higher interest rates. <\/p>\n\n\n\n
The rating agency said on Tuesday that America\u2019s \u201cfiscal strength is on course for a continued multiyear decline\u201d, having already \u201cdeteriorated further\u201d since it assigned a negative outlook to America\u2019s top-notch triple A credit rating in November 2023. <\/p>\n\n\n\n
While Moody\u2019s highlighted the \u201cextraordinary\u201d economic resilience of the US and the role of the dollar and the Treasury market as backbones of the global financial system, its analysts also warned on Tuesday that the policies of the second Trump administration \u2014 including sweeping tariffs and plans for tax cuts \u2014 could do more harm than good for government revenues. <\/p>\n\n\n\n
“The potential negative credit impact of sustained high tariffs, unfunded tax cuts and significant tail risks to the economy have diminished prospects that these formidable strengths will continue to offset widening fiscal deficits and declining debt affordability,\u201d Moody\u2019s said.<\/p>\n\n\n\n
Read it all<\/a>.<\/p> Moody\u2019s warns on deteriorating outlook for US public finances https:\/\/t.co\/xE1wjdoa8u<\/a><\/p>— Financial Times (@FT) March 25, 2025<\/a><\/blockquote>