<ul><li>Moody’s downgraded the US credit rating from Aaa to Aa1, citing rising government debt and widening budget deficit.</li><li>Concerns about the US fiscal trajectory have increased with the national debt standing at $36tn and fear of higher deficits from proposed tax cuts.</li><li>Moody’s expects larger deficits and growing interest costs in the future due to successive administrations' failure to address fiscal deficits adequately.</li><li>Investors are hopeful the downgrade will not have a lasting market impact, but attention is now focused on US debt levels and potential increase in Treasury yields.</li></ul>

US credit rating downgrade could add to pressure on government debt

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