Moody's Shifts U.S. Credit Outlook to Negative Amid Political Turmoil

Moody's has lowered its assessment of the U.S. credit outlook from "stable" to "negative," indicating America's worsening fiscal standing and the implications of political dysfunction. This comes after Fitch downgraded the U.S. credit rating in August. The rating suggests lower confidence in the government's ability to pay its debt obligations and raises concerns about potential defaults. The ongoing political issues, including infighting among House Republicans and the increasing debt load, threaten the U.S.' ability to address these challenges. The news could impact the economy, potentially leading to stock market losses and increased interest rates on loans. A U.S. default on its debts would have catastrophic consequences, damaging the government's reputation and causing economic turmoil. The White House blames Republican extremism and dysfunction, while Republicans point to the failure of President Biden and Democrats' spending agenda.