Moody's, a major credit rating agency, has reduced the United States' credit rating from the top tier of AAA to Aa1. This decision is attributed to the significant increase in government debt and the associated cost of interest payments over the past decade. The source highlights that the U.S. government has struggled to address its large budget deficits, and current legislative proposals are not expected to bring about substantial long-term reductions. This action by Moody's aligns it with other rating agencies like Standard & Poor's and Fitch Ratings, which had previously lowered their assessments of U.S. debt. The downgrade has had a noticeable impact on financial markets, leading to changes in the yields of Treasury bonds.
