Moody’s downgrades US debt rating outlook to negative ...Middle East

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Moody’s downgrades US debt rating outlook to negative
WASHINGTON: Moody’s on Friday downgraded its outlook on US debt to negative from stable, one week before crucial budget negotiations in Congress. For now, the agency has maintained its Aaa rating on US government debt. “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’s fiscal deficits will remain very large, significantly weakening debt affordability,” the agency said. The US Treasury immediately voiced its disagreement with Moody’s decision. “The American economy remains strong, and Treasury securities are the world’s preeminent safe and liquid asset,” Deputy Secretary of the

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