Washington: America’s “fiscal strength is on course for a continued multiyear decline,” the Financial Times reported, citing credit rating group Moody’s.
U.S. President Donald Trump’s trade tariffs could hamper the country’s ability to cope with a growing debt pile and higher interest rates, the rating agency said on Tuesday.
Analysts of the agency warned that the tariffs, together with plans for tax cuts, could do more harm than good for government revenues.
“In fact, fiscal weakening will likely persist even in very favourable economic and financial scenarios,” they said.
Moody’s warning comes amid heated Capitol Hill debates over how to steer the United States toward fiscal sustainability.
