U.S. Economic Council Head Criticizes Moody’s Credit Rating Downgrade: “Outdated and Backward-Looking”

Kevin Hassett, Director of the U.S. National Economic Council, has strongly pushed back against Moody’s recent downgrade of the U.S. credit rating, calling the move “outdated” and “backward-looking.” According to Hassett, the decision fails to reflect the economic direction and reforms currently being implemented by the Trump administration.

“There is no doubt that U.S. Treasury bonds are the safest investment on Earth,” Hassett stated. “No country’s bonds are more desirable to hold than U.S. Treasuries, so Moody’s can do as it wishes.”

Hassett emphasized that the downgrade unfairly penalizes the current administration for what he described as reckless spending by previous leadership. He highlighted that the current government is actively working to cut federal spending, deregulate markets, and promote supply-side growth.

“We are cutting spending and deregulating,” he explained. “With supply-side growth in place, there’s every reason to believe we will soon have the world’s best economy. And if you have the world’s best economy, you also have the world’s best debt.”

The comments come as part of a broader narrative from U.S. officials pushing back on what they see as overly pessimistic credit assessments by agencies that may not fully incorporate recent economic reforms and growth projections.

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