US Treasury Secretary Dismisses Moody’s Credit Downgrade Amid $36 Trillion Debt

U.S. Treasury Secretary Scott Bessent dismissed Moody's recent downgrade of the U.S. credit rating from Aaa to Aa1 as a "lagging indicator," attributing the increased government debt to spending policies over the past four years under the Biden administration rather than recent developments. Moody's cited a decade-long rise in government debt and interest payments, projecting that deficits could widen to nearly 9% of GDP by 2035 due to increased entitlement spending and low revenue generation. Bessent emphasized that the administration is committed to reducing spending and fostering economic growth to counter these trends. He also noted that large retailers like Walmart are absorbing some tariff costs to mitigate price increases for consumers, despite inflationary concerns. The downgrade, the last triple-A rating removal by Moody's among major agencies, reflects long-term fiscal challenges rather than immediate economic conditions. This viewpoint was consistent across multiple media outlets covering Bessent's remarks, including NBC News, Bloomberg, and Free Malaysia Today.