According to BlockBeats, on May 19, the President of the Federal Reserve Bank of Atlanta, Bostic, stated that Moody's downgrade of the U.S. rating will affect the entire economy and financial markets. The downgrade will impact the cost of capital and could ripple through the entire economy.
The Federal Reserve needs to determine the impact of the downgrade on the unstable outlook. Given household balance sheets and inflation, it is currently unclear whether consumers can bear the cost of tariffs. We must wait three to six months to see how the uncertainty dissipates.