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.