Donald Trump’s Treasury Secretary, Scott Bessent, has attributed the United States of America’s losing its top credit rating to Joe Biden’s policies.
Bessent claimed that the Biden administration’s spending over the past four years is responsible for Moody’s decision to downgrade its rating of American debt.
“We didn’t get here in the past 100 days,” Bessent said on NBC’s Meet the Press. “It’s the Biden administration and the spending that we have seen over the past four years that we inherited.” The downgrade means US government debt is now seen as higher risk, potentially leading to higher interest rates on future borrowing.
Moody’s became the last of the big three Wall Street credit rating agencies to strip the US of its triple-A status, citing a significant increase in government debt and interest payment ratios. Bessent downplayed the significance of the downgrade, stating that major investors like Qatar, Saudi Arabia, and the UAE are still investing in the US, with some making 10-year investment plans.
“The Moody’s downgrade, who cares?” Bessent said. “Moody’s is a lagging indicator — that’s what everyone thinks of credit agencies.” This perspective is disputed, however, as some analysts believe the downgrade could increase yields on US Treasuries, raising borrowing costs for the federal government.
Trump has repeatedly blamed Biden for US economic issues, including last month’s economic shrinkage. The credit rating agency warned that US finances are likely to worsen, especially with Trump’s proposed tax cuts and ongoing tariff battles expected to slow growth and stoke inflation.
