Overview

• Moody's has reaffirmed the U.S.' triple-A credit rating but warns of a multi-year decline in fiscal strength due to widening budget deficits and declining debt affordability.
• The report underscores that higher interest rates have made U.S. debt less affordable, increasing reliance on the dollar and Treasury market to maintain creditworthiness.
• Sustained high tariffs, unfunded tax cuts, and significant economic risks are cited as key factors diminishing the U.S.' ability to offset fiscal vulnerabilities.
• President Trump's recent tariff policies have heightened market concerns, with fears of increased inflation and a potential economic slowdown.
• Trump suggested he may offer tariff exemptions to some countries ahead of the April 2 deadline for implementing 'reciprocal tariffs' on trading partners.