Moody’s cuts US credit rating as debt crisis grows
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https://www.wsws.org/en/articles/2025/05/20/gpen-m20.html
Concern over the rise and rise of US debt as the Trump administration seeks to push through its “big beautiful bill” of tax cuts for corporations and the ultra-wealthy has again come into the financial spotlight with the decision by Moody’s to cut the credit rating for the US from its top grade.
The decision, announced last Friday after Wall Street had closed, means that the US no longer enjoys the top rating from any of the three major agencies—the first time in history this has happened.
One of the fears in some sections of the financial markets is that the US could experience a “Liz Truss moment”—a repetition on a larger scale of the financial crisis in the UK in September 2022 when her short-lived Tory government sought to provide major tax cuts to the wealthy and corporations, supposedly to promote growth, by increasing debt.
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