Today: November 12, 2024
November 8, 2024
1 min read

Risks to US fiscal health increase after Trump election: Moody’s

Risks to US fiscal health increase after Trump election: Moody's

Trump’s victory has contributed to a sell-off in government bonds this week, as key elements of his economic plans such as tax cuts and tariffs are expected to boost growth, but also higher inflation and larger budget deficits. .

Trump’s Republicans appeared poised to gain control of both chambers of Congress, a scenario that could allow for faster implementation of new policies.

“In the absence of policy measures to help limit fiscal deficits, the deterioration of the federal government’s fiscal strength will increasingly weigh on the U.S. sovereign credit profile,” Moody’s said in a Nov. 7 note.

“Given the tax policies that Trump promised during the campaign, and the high probability of their passage due to the changing composition of Congress, the risks to the fiscal strength of the United States have increased,” he added.

Moody’s is the last of the three major rating agencies to maintain a top rating for the US government.

In November last year it lowered the outlook on its U.S. triple-A credit rating to “negative” from “stable.”

It increases the risk of “potentially sharp and radical changes in tax, trade, immigration and climate policies, which could especially affect manufacturing, technology and retail trade,” he said of Republican control of the White House and the Capitol.



Source link

Latest Posts

They celebrated "Buenos Aires Coffee Day" with a tour of historic bars - Télam
Cum at clita latine. Tation nominavi quo id. An est possit adipiscing, error tation qualisque vel te.

Categories

Ortega tries to blackmail SICA with a complaint of “usurpation” of the General Secretariat
Previous Story

Ortega tries to blackmail SICA with a complaint of “usurpation” of the General Secretariat

cubanet-cuba-gardicantante
Next Story

Why did the singer Gardi leave the stage?

Latest from Blog

Go toTop