On Friday, Moody’s downgraded the US long-term credit rating from Aaa to Aa1, reflecting increasing debt and pressure from rising interest payments amid recession concerns.
Federal debt is expected to escalate from 98% of GDP in 2024 to 134% by 2035. The federal deficit may surge to nearly 9% of GDP by 2035, indicating worsening budgetary conditions.
Interest on the debt could consume 30% of federal revenue by 2035, exacerbated by erratic market behavior and concerns over potential recession, impacting investor confidence.
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