Moody's downgrades US credit rating outlook to 'negative' amid political polarization and looming shutdown

Moody's has downgraded the US credit rating outlook from 'stable' to 'negative', citing risks to fiscal strength and political polarization. The agency maintained the AAA rating but warned of a possible future downgrade due to rising interest rates and large fiscal deficits. The Biden administration blamed Republicans for the downgrade, accusing them of extremism and dysfunction. The downgrade raises concerns about the US's fiscal health and political stability, adding pressure to resolve budget and debt issues. It also highlights the need to address long-term structural challenges.