Moody’s downgrades U.S. credit rating
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An economist explains why the recent credit rating downgrades for major U.S. banks might not carry a big impact.
The US is no longer a triple-A sovereign credit, but top banks think investors are focused on other market narratives, with volatility to be short-lived.
Late Friday, ratings agency Moody's announced a one-notch downgrade to the U.S. government's credit rating, at the same time changing its rating outlook from stable to negative.
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A sell-off in global bonds is accelerating as Moody's downgrade of U.S. credit rating and President Donald Trump's tax bill has brought to fore investors' fiscal concerns globally.
The debt downgrade is raising concerns that investors could reevaluate their appetite for U.S. government bonds, with the potential for rising yields.