According to a report by Deep Tide TechFlow, 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 rising national debt. In a statement on May 16, Moody's noted that U.S. lawmakers failed to rein in annual deficits or reduce spending, resulting in the continued growth of national debt. Moody's stated: "We believe that the fiscal proposals currently under consideration will not lead to substantial mandatory spending and deficit reductions over the coming years. Over the next decade, as welfare spending increases while government revenues remain relatively unchanged, we expect the deficit to widen."
Although the short- to medium-term credit outlook is negative, Moody's maintains a positive outlook on the long-term economic health of the United States, citing its strong economy and the dollar's status as a global reserve currency as advantages, reflecting balanced lending risks.