Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Investing

US fiscal health risks increase after Trump election, says Moody’s

NEW YORK (Reuters) – The U.S. fiscal health is at higher risk after the election of Republican Donald Trump as the next U.S. president and given the likely composition of Congress, said rating agency Moody’s (NYSE:MCO).

U.S. budget deficits and government debt levels were largely projected to surge under either candidate in the Nov. 5 election, according to several estimates, although Democrat Kamala Harris was expected to add less debt than Trump.

Trump’s victory has contributed to a selloff in government bonds earlier this week as key elements of his economic plans such as tax cuts and tariffs are expected to lead to faster growth as well as higher inflation and wider budget deficits.

As of Friday, Trump’s Republicans appeared set to possibly win control of both chambers of Congress, a scenario that could allow for a faster implementation of new policies.

“In the absence of policy measures to help limit fiscal deficits, the federal government’s deteriorating fiscal strength will increasingly weigh on the US sovereign credit profile,” Moody’s said in a Nov. 7 note.

“Given the fiscal policies Trump promised while campaigning, and the high likelihood of their passage because of the changing composition of Congress, the risks to US fiscal strength have increased,” it added.

Moody’s remains the last of the three major rating agencies to maintain a top rating for the U.S. government.

It lowered the outlook on its triple-A U.S. credit rating to “negative” from “stable” in November last year, and it typically “resolves” an outlook, meaning in case of a negative outlook it either brings it back to stable or goes ahead with a rating downgrade, within 18 to 24 months.

“With Republican control of the Legislature and the Executive, policy shifts could be implemented quickly,” said the agency.

This raised the risk of “potentially abrupt and sweeping changes in tax, trade, immigration and climate policies that could particularly affect manufacturing, technology and retail,” it said.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com