According to a report by Deep Tide TechFlow, the credit rating agency Moody's has downgraded the U.S. government's credit rating from the highest level of Aaa to Aa1, primarily due to the continuous rise in national debt. In an announcement on May 16, Moody's pointed out that U.S. lawmakers failed to curb the annual deficit or reduce spending, leading to a persistent increase in national debt. Moody's stated: "We believe that the fiscal proposals currently under consideration will not lead to a meaningful reduction in mandatory spending and deficits over the years. Over the next decade, as welfare spending increases while government revenues remain relatively unchanged, we expect the deficit to widen."
Despite the negative short- to medium-term credit outlook, Moody's maintains a positive outlook on the long-term health of the U.S. economy, citing its strong economy and the dollar's status as a global reserve currency as advantages that reflect balanced borrowing risks.