Overview
- Scope cut the United States’ sovereign rating to AA- from AA and revised the outlook to stable.
- The agency cites weakened checks and balances, including instances of ignoring court rulings and sidestepping congressional oversight.
- Analysts highlight legislative paralysis visible in the current budget blockade, already the second-longest in U.S. history.
- Scope warns debt could reach about 140% of GDP by 2030 absent corrective policy and links added pressure to Trump’s “One Big Beautiful Bill.”
- Despite the downgrade, Scope notes support from a diversified economy, strong demand for Treasuries, the dollar’s reserve role, and the Fed, while warning that political pressure to cut rates threatens inflation credibility.