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Wall Street Futures Slide After Moody's Downgrades US
Above: A trader works on the floor at the New York Stock Exchange on May 15, 2025. Image copyright: Michael Nagle/Contributor/Bloomberg via Getty Images
The Spin
Republican narrative
This credit rating downgrade is symbolic and unlikely to have a lasting market impact, as U.S. Treasuries remain the world's safest and most liquid assets. The American economy's exceptional strength and resilience, combined with the dollar's status as the global reserve currency, continue to provide unmatched creditworthiness despite fiscal challenges. The Trump administration's America First policies towards the economy and efficient government spending will stay the course.
Democratic narrative
The rating cut reflects a legitimate deterioration in America's fiscal position, with ballooning deficits and debt servicing costs threatening long-term economic stability. The continuous failure of successive administrations to address structural budget issues and rising interest rates poses serious risks to U.S. financial credibility. President Trump's reckless government cuts and tariff positions are having real economic consequences.