Moody, America
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MOODY'S on Monday downgraded the long-term ratings of top American lenders such as JP Morgan Chase, Bank of America (BofA) and Wells Fargo after pushing the United States out of top triple-A rating club over its burgeoning $36-trillion debt.
The downgrade of the U.S. sovereign credit rating Friday will likely mean higher borrowing costs on mortgages.
Moody’s gave the U.S. a negative outlook—but markets didn’t flinch. This isn’t about default. It’s about trust, and why credibility erosion is the real risk.
After the United States lost its last perfect credit rating on Friday, Republicans and Democrats responded by pointing fingers at each other.
Investors largely shrugged off a downgrade of the U.S.'s credit rating in Monday trading as stocks ended the day mostly flat.
U.S. stocks turned mostly higher despite Moody's trimming the US' credit rating. Treasury yields jump as investors demand more payout to hold US debt.