**Impacts after a rating downgrade**

Why does Trump call it a hoax and not want to hear about it?

Does he live in his own world of the rich and powerful, and does other people and companies mean nothing to him?

Does only a wealthy handful of devoted supporters benefit from his style of government?

.....

The move adds to compounding risks facing the US market as President Donald Trump’s sporadic tariff regime weighs on the economic outlook. Although the S&P 500 has recovered from the depths of last month’s rout, many Wall Street professionals remain skeptical of the advance as the toll of tariffs on business and consumer confidence threaten to show up in economic data in months ahead.

This is a warning sign. The markets is about to hit a ceiling after a much welcomed rally. A credit-rating downgrade by Moody’s may end up spurring some profit taking by money managers after a massive run for equities the past month.

It remains to be seen how this will affect equity markets in the coming weeks, but there may be caution following the strong stock gains recently.

This is not good for overall US markets. This is not like when S&P lowered the AAA rating back in 2011 which was a shocker and markets were already teetering then. The bond market is seeing rates late in the day move higher and rates moving higher, faster and sharper has been number one on the risk list for me.

U.S. President Donald Trump's sweeping tax bill failed to clear a key procedural hurdle on Friday, as hardline Republicans demanding deeper spending cuts blocked the measure in a rare political setback for the Republican president in Congress.

Moody’s downgrade of the United States’ credit rating should be a wake-up call to Trump and Congressional Republicans to end their reckless pursuit of their deficit-busting tax giveaway.

Today’s GOP simply does not care about deficits or our nation’s fiscal health. Republicans are hell-bent on a multi-trillion tax cut for the ultra-wealthy, leading to nothing but higher prices, more debt, and fewer jobs.

Source: Yahoo Finance