The outlook on the credit rating of the United States was changed to “negative” from “stable” on Friday by the ratings firm Moody’s, which pointed to the nation’s worsening fiscal position and political polarization as long-term concerns for America’s economy.
The change falls short of a downgrade to America’s credit rating, which Moody’s maintained at the highest AAA level.
That downgrade, two months after the United States narrowly avoided defaulting on its debt, was the second in America’s history.
Republicans have been pushing for severe spending cuts to reduce the gap between what America spends and what it earns in tax revenue.
Mr. Biden has proposed reducing future deficits by expanding the economy and raising taxes on high earners and corporations.
Persons:
Moody’s, Fitch, Biden
Organizations:
AAA, Republicans, America
Locations:
United States