Moody’s downgrades United States credit rating

[tsptalk]

Fodder for Monday's market...

Moody’s downgrades United States credit rating, citing growth in government debt

Moody’s had been a holdout in keeping U.S. sovereign debt at the highest credit rating possible, and brings the 116-year-old agency into line with its rivals.

The decision to lower the United States credit profile would be expected, at the margin, to lift the yield that investors demand in order to buy U.S. Treasury debt to reflect more risk, and could dampen sentiment toward owning U.S. assets, including stocks.

https://www.cnbc.com/2025/05/16/moodys-downgrades-united-states-credit-rating-on-increase-in-government-debt.html

 

[tsptalk]

After Finch downgrade in August 2023:

 

[nasa1974]

So, does our administration really know what they are doing? Not that it was great, but we went from a relatively good economy to what the heck is going on.

 

[tsptalk]

I believe they are trying to cut the debt but noone else in DC seems to have an appetite for it.

But politics wasn't the reason for this thread. Our TSP accounts may experience some volatility again next week, which some of us have been waiting for.

We survived a downgrade in 2023, but there was a 10% plus correction right afterward.

 

[amoeba]

Internet chatter is the Moody rating is not it (others downgraded to same awhile back). And, Moody's reasoning (2017 Tax cut extension) was known with the November election result. Rather, it appears catalyzed by something else Trump said post close about slow tariff negotiations. None of this strikes me as bombshell news. Can't read much into AH action...thin trade. Doubt Trump's team will counter over the weekend... he's been golfing both weekend days recently, working banker's hours. I say a buying opportunity, if a dip at all (or I'm wishing since I just went all in). Aaii bull:bear improved, but not extreme (still slightly negative).

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