The US Treasury Secretary Scott Besent rejects Moody's Govt rating: 'I don't put in much credibility ...' | Today news

Scott Besent, Secretary of the US Treasury, rejected in an interview with CNN the grading downgrade of US rating firm Moody’s, the Reuters news agency reported on Sunday, May 18, 2025. “I didn’t put much credibility in Moody’s,” Besent said, quoted in the agency report. This comes after US judging firm Moody’s downgraded the US government’s long -term issuer and senior unsecured ratings to “AA1” from its previous “AAA” levels. According to Mint’s earlier report, Moody’s ratings reduced Moody’s Investors Service downgraded the United States Sovereign Credit Rating on Friday, May 16, 2025, over increasing concerns about the growing debt burden of $ 36 trillion. The rating agency also reduced the long -standing rating of the US government by one notch to ‘AA1’ from ‘AAA’ and revised its view to ‘stable’ from the previous level of ‘negative’. Moody’s has maintained its US government ratings at the “AAA” level since 1919, and this review is the last of the three most important credit rating firms to downgrade the US credit rating. “Successive US administrations and the congress have failed to agree on measures to convert the tendency of major annual fiscal deficits and growing interest costs,” Moody’s said according to the report. The rating firm also indicated that if the US government returns to fiscal discipline through increased income or reduced spending, it could lead to a rating upgrade in the future. Moody’s prospects for the US economy, although Moody’s downgraded the rating of the United States sovereign credit, the firm highlighted some credit strength, such as large size, resilience, high average income and a strong record of innovation. The rating firm expects the United States to maintain its institutional strengths, including the constitutional separation of powers and an effective, independent monetary policy of the US Federal Reserve. They also quoted how the US dollar still handed over as the world’s dominant reserve currency, which strongly supports the US government despite a high fiscal deficit in the country’s economy. According to the Moody’s Report, according to the Moody’s Report, it is not very likely to find a credible alternative to the US dollar. However, Moody’s also expects the US to add $ 4 billion dollars to the federal primary deficit in the next ten years due to the increases of the rights and revenue growth in the economy.