Moody's Downgrades US Credit Rating Due to Rising National Debt :
Moody's credit rating agency has lowered the United States government's credit rating from Aaa to Aa1, attributing the increase in national debt as the main reason for the downgrade. Despite the downgrade, Moody's remains optimistic about the long-term health of the US economy, highlighting its strong economy and the global reserve currency status of the US dollar. The announcement received mixed reactions from investors, with some questioning the agency's credibility. While some, like Gabor Gurbacs, criticized Moody's track record in assessing credit during financial crises, others like Jim Bianco downplayed the significance of the downgrade. The US government's debt has exceeded $36 trillion and continues to rise, leading to concerns about increasing bond yields and debt service payments. This trend could create a cycle where the government needs to offer higher yields to attract investors, further adding to the national debt.