Investing.com -- China has urged the United States to adopt responsible economic policies in the wake of Moody’s decision to strip the U.S. of its last triple-A credit rating.
Speaking at a press briefing Monday, a spokesperson for China’s foreign ministry called on Washington to take responsible policy measures to maintain the stability of the international financial and economic system and safeguard the interests of investors, Reuters reported.
The comments come after Moody’s downgraded the U.S. from ‘AAA’ to ‘Aa1’, citing mounting fiscal deficits and rising interest costs. The agency warned that continued political gridlock and a lack of fiscal discipline pose long-term risks to the country’s financial stability.
“The first thought to come to mind is: what took you so long?” analysts at Vital Knowledge wrote, noting that Fitch made a similar downgrade in 2023 and S&P acted as far back as 2011.
They pointed to the growing U.S. deficit—now unusually high for a full-employment, peacetime economy—as a key justification.
Moody’s had maintained a perfect rating on U.S. debt since 1917, making the downgrade historically significant. While the impact on Treasury markets may be limited in the short term, the symbolic loss of credibility raises fresh questions about U.S. fiscal governance.
U.S. stock futures fell early Monday as investors reacted to Moody’s decision to downgrade the nation’s credit rating. As of 04:00 ET (08:00 GMT), Dow Jones Futures futures were down 398 points, or 0.9%. S&P 500 Futures dropped 70 points, or 1.2%, while Nasdaq 100 Futures slid 306 points, or 1.4%.