Moody's strips US of AAA credit rating, citing failure to rein in debt

Moody's downgraded the credit rating of the United States from Aaa to Aa1, citing rising levels of government debt, and lowered its outlook on the US to "stable" from "negative". This move is the last of the three major rating agencies to lower the federal government's rating. The rating could potentially complicate President Donald Trump's efforts to cut taxes. Moody's expects federal deficits to widen to almost nine percent of economic output by 2035. This downgrade is seen as a negative development for the Trump administration, coming on the same day that the president's flagship spending bill failed to pass a key vote in Congress. The White House responded with a critical tone towards Moody's, labeling it the "last of the three" to lower the federal government's credit rating. Standard & Poor's downgraded federal debt in 2011, and Fitch Ratings followed.