Moody’s Slashes US Outlook to ‘Negative’ Citing Too Much Government Spending

The rating agency also cited political brinkmanship in Washington as a factor behind its decision to slash the outlook for U.S. government debt.

The U.S. Capitol building in Washington on Sept. 25, 2023. Madalina Vasiliu/The Epoch Times

Credit rating agency Moody’s has cut its outlook for the U.S. government from “stable” to “negative,” citing a lack of restraint on spending.

“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability,” the agency announced on Nov. 10.