Treasury Sec. Bessent dismisses Moody’s US downgrade as Trump tax-cut debate continues

New York Post - May 18th, 2025
Open on New York Post

Treasury Secretary Scott Bessent dismissed Moody's recent downgrade of the US sovereign credit rating, asserting confidence in the Trump administration's plans to boost economic growth beyond national debt levels. Speaking on CNN's 'State of the Union,' Bessent emphasized that the tax-cut bill being debated in Congress would catalyze economic expansion. Moody's decision on Friday to reduce the US credit rating from 'Aaa' to 'Aa1' reflects concerns over rising debt and interest payments relative to other similarly rated countries. This marks a significant shift as Moody's was the last major agency to uphold a triple-A rating for US sovereign debt.

The downgrade aligns with Moody's outlook adjustment earlier in 2023, which highlighted the challenges of a widening fiscal deficit and increased interest obligations. It occurs amid Congressional debates over tax and spending policies that may exacerbate fiscal issues. Moody's cited a lack of consensus in US policy-making as a factor, pointing to the inability of successive administrations and Congress to curb substantial annual fiscal deficits and manage growing interest costs. The downgrade underscores the ongoing fiscal challenges faced by the US and raises questions about future economic policies and their impact on national and global markets.

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RATING

6.2
Moderately Fair
Read with skepticism

The article provides a timely account of Moody's downgrade of the US credit rating and Treasury Secretary Scott Bessent's response. It is clear and concise, making it accessible to a general audience. However, the story could benefit from greater balance by including a wider range of perspectives and expert analysis. While it accurately presents the main claims, the lack of direct references to source material and additional context on the implications of the downgrade limits its transparency and source quality. Overall, the article effectively highlights a significant economic issue but could be improved with more comprehensive coverage and verification of its claims.

RATING DETAILS

7
Accuracy

The article provides specific claims about Treasury Secretary Scott Bessent's dismissal of Moody's downgrade and the reasons for the downgrade itself. The statement attributed to Bessent regarding the Trump administration's economic growth plans is a direct quote, which adds to its verifiability. However, the story's accuracy hinges on the confirmation of Bessent's actual appearance and statements on CNN's "State of the Union" program. Additionally, the article accurately describes Moody's downgrade from "Aaa" to "Aa1" and cites reasons such as rising debt and interest payments. The accuracy could be enhanced by providing direct references to Moody's official statements or reports for further verification.

6
Balance

The article primarily presents the perspective of Treasury Secretary Scott Bessent and the Trump administration, emphasizing their confidence in economic growth outpacing debt. While it mentions Moody's rationale for the credit downgrade, it lacks a broader range of perspectives, such as economic experts or opposition viewpoints that could provide a more nuanced view of the situation. The inclusion of additional voices would help balance the narrative and offer readers a more comprehensive understanding of the implications of the downgrade.

8
Clarity

The language and structure of the article are clear and concise, making it easy for readers to understand the main points. The story logically presents the sequence of events, starting with Bessent's dismissal of the downgrade, followed by the details of Moody's actions and reasoning. The tone is neutral, and the information is presented in a straightforward manner, which aids in comprehension. However, the inclusion of more background information on the implications of the credit downgrade could enhance clarity for readers unfamiliar with the topic.

5
Source quality

The article cites Treasury Secretary Scott Bessent and Moody's as its primary sources, which are credible and authoritative in the context of US economic policy and credit ratings. However, there is no direct attribution to Moody's official statements or reports, which would strengthen the reliability of the information presented. Additionally, the article does not provide any other sources or expert opinions, which could have added depth and credibility to the analysis.

5
Transparency

The article lacks transparency in terms of providing direct references or links to the sources of its claims, such as Moody's official statement or the transcript of Bessent's interview. While it summarizes the key points of the downgrade and Bessent's response, it does not offer a clear explanation of the methodology behind the claims or the context in which they were made. Greater transparency in sourcing and context would improve the reader's understanding of the basis for the claims.

Sources

  1. https://ratings.moodys.com/ratings-news/443154
  2. https://8kun.top/qresearch/res/23051113.html