The federal government’s credit rating dropped from Aaa to Aa1 due to an “increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns,” according to the rating service.
Moody’s predicted that the extension of the 2017 Tax Cuts and Jobs Act would “add around $4 trillion to the federal fiscal primary (excluding interest payments) deficit over the next decade.”
The company pointed out that Congress and past administrations have been unable to agree on how to curb the pattern of substantial yearly budget deficits and rising interest costs.
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“We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration,” Moody’s wrote in
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