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Treasury Secretary Downplays Moody’s Downgrade, Citing Biden Administration Spending
Treasury Secretary Scott Bessent dismissed Moody’s recent downgrade of the U.S. credit rating, calling the agency a “lagging indicator” in an interview on NBC’s “Meet the Press”. Moody’s lowered the rating from Aaa to Aa1 last week, citing increasing government debt levels over the past decade.
Bessent linked the downgrade to the Biden administration’s spending policies, characterizing them as a continuation of spending trends predating the current administration. He stated, “It’s the Biden administration and the spending that we have seen over the past four years.” The national debt currently stands at $36.22 trillion, reflecting a steady rise since the 1980s.
The Treasury Secretary also addressed conversations with Walmart CEO Doug McMillon regarding tariffs. Bessent stated that McMillon confirmed Walmart would absorb some tariff-related costs, echoing comments previously made by Walmart CFO John David Rainey. While former President Trump publicly urged Walmart to “eat the tariffs,” Bessent denied pressuring the company, emphasizing his good relationship with McMillon.
Regarding a luxury jet offered to the U.S. by Qatar, Bessent framed questions about the $400 million gift as a distraction from the positive investment commitments secured by the President during his recent Middle East trip. He downplayed concerns about the credit downgrade and potential influence-peddling, stating, “Who cares?
Qatar doesn’t. Saudi doesn’t.
UAE doesn’t. They’re all pushing money in.”
Senator Chris Murphy (D-Conn.) criticized Bessent’s remarks, emphasizing the significance of the credit downgrade and its potential implications for the economy, including a possible recession and increased interest rates. He accused the administration of reckless economic management, prioritizing the interests of the wealthy.