S&P Global reaffirmed the United States' AA+ credit rating and stable outlook, citing economic strength, effective institutions, proactive monetary policy, and the dollar's reserve-currency role. Robust tariff income is expected to help offset fiscal slippage from recent tax cuts and spending increases, reducing near-term deficit pressure. The One Big Beautiful Bill Act will add trillions to deficits over a decade, while Congressional Budget Office estimates show tariffs could shave trillions. S&P projects the deficit to narrow to about 6% of GDP from 2025–2028, down from 7.5% in 2024, but does not expect significant fiscal improvement.
S&P Global reaffirmed its AA+ credit rating and stable outlook last week due in part to "robust tariff income," which should help offset the impact of tax cuts and spending in the federal budget. While S&P doesn't see meaningful improvement in the fiscal deficit, it doesn't expect steep deterioration either. However, reciprocal tariffs face legal challenges and could be struck down.
S&P reaffirmed its AA+ rating on U.S. debt last week, citing the overall strength of the economy, institutions that provide effective checks and balances, proactive monetary policy, and the dollar's status as the world's top reserve currency. The outlook on the credit rating, which is a notch below the top AAA grade, remains stable because the deficit won't muddy the picture.
Collection
[
|
...
]