Moody’s cuts outlook on U.S. credit rating to negative from stable

Moody’s Investors Service late Friday cut its outlook on the U.S. sovereign credit rating to negative from stable.

  • They cited higher interest rates and doubts about the government’s ability implement effective fiscal policies.
  • A ‘negative outlook’ means that a rating may be cut in the future, but doesn’t mean that it will be.

Federal spending and political polarization have been a rising concern for investors, contributing to a selloff that took U.S. government bond prices to their lowest levels in 16 years.

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