Scott Bessent Responds to Moody’s Downgrade: A Call for Fiscal Responsibility
In response to Moody’s recent credit downgrade, Scott Bessent offered a sharp critique of the agency’s timing and the fiscal legacy left by previous policies.
Speaking candidly, Bessent characterized Moody’s as a “lagging indicator,” echoing the sentiment once expressed by former Treasury Secretary Larry Summers during a similar downgrade in 2011.
“Moody’s is a lagging indicator,” Bessent emphasized. “We didn’t get here in the past 100 days. It’s the Biden administration and the spending that we have seen over the past four years.”
Pointing to the alarming fiscal numbers, Bessent highlighted the current budget deficit: “We inherited a 6.7% deficit to GDP, the highest ever recorded when the country wasn’t in a recession or at war.” According to him, these figures reflect a troubling trend of unchecked government expenditure, which he attributes to the policies of the previous administration.
Bessent reaffirmed his team’s commitment to reversing this course. “We are determined to bring the spending down and grow the economy,” he declared, aligning with calls for structural reforms and a renewed focus on economic growth over excessive government outlays.
Referencing Rep. Sean Duffy’s earlier remarks about outdated infrastructure like the air traffic control system, Bessent underscored that the nation’s current fiscal predicament is the result of years of neglect and overspending—not recent decisions alone.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
