In a separate interview on Fox Business Network’s “Mornings with Maria” on Monday, Hassett called U.S. debt “the safest bet on Earth,” but similarly said that the new rating is “backward looking” and is “penalizing us for all the reckless spending of the Biden administration” — all while predicting an economic “liftoff.”

Even before talk of fresh unfunded tax cuts took center stage in the budget wrangling on Capitol Hill, US bond investors were making their views loud and clear: If the government keeps spending more than it takes in,

Nina Eichacker, an economics professor at the University of Rhode Island, says the downgrade speaks to a “growing disparity between an administration that talks about wanting to reduce the debt and then pursues policies that do anything but.

It all comes down to money. The credit rating is a guide to how risky buying debt is for potential investors. Independent agencies examine the metrics of a would-be bond seller to assess their creditworthiness and determine how likely that issuer might be to default on their debt.

Moody's becomes latest major credit rating agency to downgrade US' 'perfect' long-term credit rating - Anadolu Ajansı

Years of rising deficits and budget chaos finally caught up with the U.S. credit rating Friday when Moody’s Investor Service downgraded the government, stripping its last triple-A rating.

The 30-year U.S. Treasury yield topped 5% to hit its highest since October 2023 after Moody's on Friday stripped the United States of its AAA sovereign credit rating. It was the last of the three main credit ratings agencies to do so.

After the closing bell on Friday, Moody’s became the last major credit-rating firm to downgrade U.S. sovereign debt from its perfect AAA status to Aa1. The firm argues that the U.S. is on a trajectory to increase entitlement spending—without the necessary government revenues to keep interest payment ratios at levels similar to other sovereign nations.