{"id":2098072,"date":"2023-11-14T03:23:02","date_gmt":"2023-11-14T08:23:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/moodys-outlook-downgrade-a-reminder-of-us-fiscal-challenges\/"},"modified":"2023-11-14T03:33:07","modified_gmt":"2023-11-14T08:33:07","slug":"moodys-outlook-downgrade-a-reminder-of-us-fiscal-challenges","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/moodys-outlook-downgrade-a-reminder-of-us-fiscal-challenges\/","title":{"rendered":"Moody&#8217;s downgrade reminds us of US fiscal challenges."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmoodys-outlook-downgrade-a-reminder-of-us-fiscal-challenges%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2098072&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Moody\u2019s Warning Highlights Perilous Fiscal Situation in the United States<\/h2>\n<p>Moody\u2019s\u2063 decision to cut its ratings outlook for the United States to \u2062negative is yet another warning of the country\u2019s perilous fiscal footing, \u2064even if not an\u200c immediate threat to \u2062the\u200c economy.<\/p>\n<p>Moody\u2019s Investor Services is the last ratings agency to give the U.S. its top rating: AAA. Both Fitch Ratings\u2062 and S&#038;P Global Ratings\u200b have already \u2064dropped the\u200b U.S. below their top threshold, and while\u200b Moody\u2019s held off \u2063doing so, the \u200bnegative outlook \u2064raises the odds that it \u2064could end up following\u200b suit.<\/p>\n<h3>Concerns Mount Over \u2063Fiscal Challenges<\/h3>\n<p>Maya MacGuineas, president of the\u200d Committee \u200dfor a Responsible \u200cFederal Budget, \u200dsaid the most recent outlook downgrade isn\u2019t surprising given the soaring\u200b federal\u2063 debt \u200cand trouble dealing with\u200c budget deficits.<\/p>\n<blockquote>\n<p>\u201cAnybody who is\u2064 paying attention will know that we are on\u200d a fiscally unsustainable path and that\u2062 our lawmakers are doing an abysmal \u2062job of addressing it,\u201d she told the Washington \u2063Examiner. \u201cIt makes sense,\u200b whether it\u2019s a downgrade \u200bor a lower watch \u2014 \u200bthis \u2063reflects where we are as we govern from crisis to crisis.\u201d<\/p>\n<\/blockquote>\n<p>MacGuineas said the\u200c outlook downgrade isn\u2019t \u200dlikely to have a major effect on interest\u200d rates, \u200cgiven\u200b how many\u200b other factors are at play. She said, though, \u2063that the move <strong>\u201cis more of a reminder \u2026 that \u200cthe <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/svb-collapse-house-republican-says-us-should-insure-all-deposits-after-bank-failure\/\" title=\"SVB collapse: House Republican says US should insure all deposits after bank failure\">interest rate situation<\/a> is going\u2063 to get worse and lead\u200b to higher interest payments if we \u2064don\u2019t \u200ddo\u2062 something about the underlying fiscal challenges.\u201d<\/strong><\/p>\n<p>The country is dealing \u200bwith nearly $33 trillion in national debt, a number that is only set to increase in\u200c the coming years and\u2062 decades. \u2062Additionally,\u2064 the\u2064 federal budget deficit ticked \u2062up to $1.7 trillion for fiscal 2023, which\u2063 ended in September, the Treasury\u200c Department announced.<\/p>\n<p>Adding to concerns about the country\u2019s \u200dfiscal standing is that automatic cuts to Social Security are estimated to come in 2035 \u200bunless something is done\u2064 to shore up its trust fund, and the Medicare Hospital Trust Fund \u2062is expected to be exhausted between \u20622028\u2063 and 2031.<\/p>\n<h3>Political Paralysis and Rising Debts<\/h3>\n<p>In\u2063 announcing the downgrade, Moody\u2019s\u2063 cited \u2063the current \u2062hole \u2063the U.S. finds\u200b itself in. It \u200balso \u200dnoted \u200cthat despite the looming deadlines and rising debts, Congress has been seemingly paralyzed by partisan bickering and disagreement on a\u200c course of action, \u200dparticularly as higher\u200d interest rates\u2064 make the situation all the more \u200dprecarious.<\/p>\n<blockquote>\n<p>\u201cIn the context \u2064of higher interest rates,\u200d without <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/moodys-changes-us-credit-rating-outlook-to-negative-over-deficits-and-polarization\/\" title=\"Moody's changes US credit rating outlook to 'negative' over deficits and polarization\">effective fiscal policy measures<\/a> to reduce\u200c government \u200bspending or increase revenues, Moody\u2019s \u2062expects that the U.S.\u2019 fiscal deficits \u200bwill \u200dremain very large, significantly weakening debt affordability,\u201d Moody\u2019s\u200d said in a\u2064 statement. \u201cContinued political polarization within U.S. \u2062Congress raises the risk \u200dthat successive governments will not be \u2062able to \u2063reach consensus on a \u2063fiscal plan to slow \u2063the decline in debt affordability.\u201d<\/p>\n<\/blockquote>\n<p>Mark Hamrick, Bankrate\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/jobless-claims-rise-to-6-month-high-job-cuts-jump-57-percent\/\" title=\"Jobless Claims Rise to 6-Month High, Job Cuts Jump 57 Percent\">senior economic analyst<\/a>, told the Washington Examiner that \u2062the Moody\u2019s outlook \u2062downgrade is\u200c an \u201cacknowledgement \u200dand a \u2063recognition\u201d \u200dof how the divided Congress and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/moodys-outlook-downgrade-a-reminder-of-us-fiscal-challenges\/\" title=\"Moody's downgrade reminds us of US fiscal challenges.\">tense political situation makes meaningful\u200c work<\/a>\u2063 on the country\u2019s fiscal problems so difficult.<\/p>\n<blockquote>\n<p>\u201cIt shouldn\u2019t surprise anybody that this has happened, and it\u2019s not really consequential in and \u200cof \u200citself for the markets, but it is sort\u200d of\u2063 writing \u2062a \u200bwarning ticket to the elected \u2063officials, and ultimately \u200bby extension, to the American public\u201d that there \u2064are consequences \u200bfor the inability to\u2063 manage fiscal issues \u2062in a way consistent \u2063with regular \u2063order, he said.<\/p>\n<\/blockquote>\n<h3>Efforts \u200dto Address the Fiscal Crisis<\/h3>\n<p>But lawmakers \u2064have taken tentative \u200csteps in recent days to improve the country\u2019s fiscal situation. New House Speaker \u2062Mike\u2064 Johnson (R-LA) \u2064used his first floor speech as leader of the House to urge \u2063the \u2063adoption\u2063 of a bipartisan \u200cfiscal\u2062 commission tasked with making a plan to fix the \u200bcountry\u2019s debt.<\/p>\n<p>And then last week, Sen. Mitt Romney (R-UT) and Sen. Joe Manchin (D-WV), alongside a cast of other Republicans and Democrats, proposed \u2062legislation that would create such a bipartisan and bicameral commission.<\/p>\n<p>The\u200b commission would work to produce a report and propose legislation that would stabilize the ratio\u2063 of public debt \u200dto gross domestic product within \u2064a 15-year time frame and improve solvency of federal \u2064trust funds, such as those for Social Security and Medicare, over a 75-year time frame.<\/p>\n<blockquote>\n<p>\u201cI think that is \u200bthe best idea \u2063out there. \u2026 It is important because\u2063 it provides political cover at a time where there is not a lot of political courage,\u201d MacGuineas said.<\/p>\n<p>\u201cI think it makes a ton of sense; it\u2019s\u200c not guaranteed to succeed, but it\u2019s probably the best \u2064chance\u200b there is\u200b right now, especially \u200bif\u2064 an \u2063emergency \u2062comes along. It would be good\u200d to know \u200dthat people are working on this,\u201d she added.<\/p>\n<\/blockquote>\n<p>The downgraded outlook \u200dwas\u200c more bad news for President Joe \u2064Biden, who has consistently \u2064gotten low\u200d approval ratings on his handling of the economy despite a major push from the White House \u2062to emphasize the bright spots in \u2062the economy as \u201cBidenomics\u201d at work. The Treasury Department said after the downgrade that it\u2064 didn\u2019t agree \u2064with \u200cthe move.<\/p>\n<p>\u201cWhile the statement by Moody\u2019s maintains the United States\u2019\u200d Aaa rating, we disagree with the shift to a negative outlook. The American economy remains\u2062 strong,\u2062 and Treasury securities are the world\u2019s preeminent safe\u2062 and liquid\u200b asset,&#8221; said Deputy Treasury Secretary\u200c Wally Adeyemo in a statement.<\/p>\n<p>Rep. Jodey Arrington (R-TX), \u200bthe Budget\u200c Committee chairman, said\u200c in Monday \u2064statement after the outlook downgrade that the U.S. is \u201cbarreling\u200b towards a debt-related economic crisis.\u201d<\/p>\n<p>There \u200dhave been other warning \u2064signs this year \u200das well. In August, Fitch announced that America\u2019s AAA rating would\u200d be downgraded\u2062 to AA+ following this year\u2019s debt limit fight.<\/p>\n<p>While Moody\u2019s reaffirmed its AAA rating for the U.S. in announcing the\u200c outlook \u2062downgrade, Hamrick said that righting the fiscal\u200d ship becomes even more fractious during an election year.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/moodys-warning-highlights-perilous-fiscal-situation-in-the-united-states\">CLICK HERE TO READ \u2063MORE FROM THE WASHINGTON EXAMINER<\/a><\/p>\n<p> <\/p>\n<h2> What is the significance of the \u2064proposed legislation\u2064 in addressing the fiscal crisis in programs such as Social Security and Medicare?<\/h2>\n<p><span>  In programs such as Social Security and Medicare. The proposed legislation has garnered\u200b support from both sides\u200d of the aisle, signaling\u2064 a \u2064potential willingness to address the fiscal crisis.<\/p>\n<p>However,\u200c the path forward is still uncertain. The current political climate, characterized by partisan bickering\u200b and polarization, poses a significant obstacle to effective\u200b fiscal policy measures. Without a\u2062 consensus on a fiscal plan, the\u200c decline in debt\u200c affordability is likely to continue,\u2064 putting\u200d the country at even greater risk.<\/p>\n<p>The Moody&#8217;s outlook downgrade\u2063 serves as a wake-up call to both elected officials and the American public. It highlights the\u2062 consequences of political paralysis and\u2063 warns of the worsening interest rate situation and its \u2063impact on higher interest payments. The need to address the\u200d underlying fiscal challenges becomes more urgent with\u2064 each passing day.<\/p>\n<p>Addressing the fiscal crisis requires proactive\u200b and decisive \u2064action. Lawmakers must come \u200ctogether to find common \u200bground and\u200c develop a comprehensive plan to\u2064 reduce government spending and increase revenues. Furthermore, a bipartisan and bicameral commission, as proposed by Sen. Romney and\u200d Sen. Manchin, could provide a structured\u200b approach \u2062to tackling the \u2063issue.<\/p>\n<p>With nearly $33 trillion in national debt and mounting budget deficits, the United States is standing \u2063on precarious fiscal footing. The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republicans-go-to-war-against-joe-bidens-450k-payouts-to-border-crossers-civilizational-homicide\/\" title=\"Republicans Go to War Against Joe Biden's 0K Payouts to Border Crossers: 'Civilizational Homicide'\">long-term viability<\/a> of programs like\u200b Social Security \u200dand Medicare is \u2063also in question unless steps\u200c are taken to secure their \u200btrust funds. Failure to address these challenges will lead to dire consequences for the economy and future generations.<\/p>\n<p>Ultimately, the Moody&#8217;s warning serves as a stark reminder that the United States cannot afford to ignore its perilous fiscal situation. It is a call \u2064to action for lawmakers to put aside partisan differences and prioritize the long-term financial\u200d health of the country. The time for decisive action is now, before the \u200cfiscal crisis becomes an irreversible catastrophe.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>have already downgraded their outlook for the United States. This move by Moody&#8217;s highlights the country&#8217;s unstable financial situation, although it may not pose an immediate danger to the economy. Moody&#8217;s is the only agency that still rates the U.S. with AAA, as Fitch Ratings and S&amp;P Global Ratings have already lowered their ratings.<\/p>\n","protected":false},"author":1,"featured_media":2098073,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2098072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2098072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2098072"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2098072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2098073"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2098072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2098072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2098072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}