Despite a downgrade of U.S. debt by Moody's, markets are showing resilience, diminishing earlier losses. Moody's reduced the U.S. credit rating due to continual budget deficits and rising interest rates. President Trump has disputed this downgrade, reinforcing confidence in the economy. The downgrade has led to higher Treasury yields, with the 30-year yield exceeding 5%, impacting equities, particularly in the technology sector. Additionally, Atlanta Fed President Raphael Bostic anticipates an interest rate cut by 2025, suggesting a stronger economic outlook amid recession fears.
The markets are narrowing their declines despite a U.S. debt downgrade from Moody's due to persistent budget deficits and high interest rates.
President Trump challenges the downgrade, asserting global confidence in the U.S. economy despite Moody's lowered rating to Aa1.
Treasury yields increased following the downgrade, with the 30-year Treasury yield surpassing 5%, affecting equities, particularly in the tech sector.
Atlanta Fed President Bostic forecasts one interest rate cut in 2025, indicating potential resilience in the economy against recession risks.
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