Moody’s downgraded the U.S. credit rating from Aaa to Aa1, citing rising debt, high interest costs, and long-term fiscal risks. Following earlier downgrades by S&P (2011) and Fitch (2023), the U.S. has now lost AAA status across all major rating agencies.
The move triggered a spike in the 30-year Treasury yield to 5% and widened CDS spreads, reflecting growing market concern. Should we worry about a looming U.S. debt crisis? What does this mean for your investments?
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