Moody, debt
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Treasury Secretary Scott Bessent downplayed the U.S. credit downgrade as a "lagging indicator" of economic and fiscal conditions, after Moody's took the U.S. off its top tier.
Government bonds aren't the "shock absorbers" investors can rely on in times of volatility, KKR said, while Jamie Dimon this week warned of dangers in credit.
All three major U.S. stock market indexes rose Monday afternoon, following an earlier selloff sparked by long-dated Treasury yields surpassing the 5% mark after the financial ratings agency Moody’s downgraded the U.S. government’s credit rating late last week, citing rising debt and interest payment ratios.
CNBC's 'Mad Money' host and veteran market commentator Jim Cramer has urged investors not to get nervous in the face of concerns like the Moody’s downgrade of U.S. debt . The U.S.'s rising debt stands at $36 trillion as of now.
Moody’s cut the U.S. credit rating one notch to Aa1 from Aaa due to the federal government’s ballooning budget deficit and soaring interest payments.
Investors faced yet another bumpy start to the trading week with US assets coming under fresh pressure, although it’s mounting concern over American debt rather than tariffs generating the volatility this time.
Investors will get the first chance to react to Moody’s downgrade of the U.S. credit rating late Friday over rising government debt and they’ll also look for more progress from President Trump on trade deals as the week kicks off.
A U.S. sovereign downgrade by Moody's has exacerbated investor worries about a looming debt time-bomb that could spur bond market vigilantes who want to see more fiscal restraint from Washington.