White House furious: Moody's downgrades US credit rating

On Friday, Moody's, the American credit rating agency, downgraded the credit rating of the United States. The White House is, to put it mildly, 'not amused'.

Moody's downgraded the US credit rating from 'Aaa' to 'Aa1', citing the country's rising debt and interest rates that are higher than those of countries with a similar rating.

The US continues to struggle with large annual budget deficits and rising interest costs, and Moody's does not see this trend reversing soon, especially as American politicians fail to take measures to remedy the situation.

Through communications director Steven Cheung, the White House reacted furiously. He criticised Moody's economist Mark Zandi's analysis: "No one takes his 'analysis' seriously. He keeps getting it wrong."

More expensive loans for the Trump administration

'Aa1' is still the second-highest credit rating, but the downgrade means US Treasury bonds are no longer seen as the safest possible investments. For the Trump administration, it may become more expensive to borrow money.

Other credit rating agencies had previously downgraded the United States' credit rating: Standard & Poor's did so in 2011, Fitch in 2023.

(PP with DC - Source: NYT, DM - Picture: © picture alliance / Consolidated News Photos | Chris Kleponis - Pool via CNP)