The credit rating of the United States has been downgraded by the leading European agency, Scope, citing high debt levels and political instability as the primary reasons. This downgrade comes as the US national debt surpasses 122 percent and is projected to reach 140 percent by 2030, raising concerns about economic stability.
Scope lowered the US credit rating from AA to AA-, highlighting continuous high budget deficits and political uncertainties as key factors. The agency pointed out that political polarization and budget impasse have hindered essential reforms, aggravating the economic challenges.
Furthermore, the financial markets have reacted to President Trump’s trade policies and criticism of the Federal Reserve, causing fluctuations in the yields of US treasury bonds. Despite the uncertainties, the confidence in the US economy remains pivotal.
The situation underscores the significant economic challenges facing the US, exacerbated by the lack of reform willingness and scrutiny of Trump’s governance. Maintaining trust in the financial markets is crucial for the country’s future economic trajectory.