Treasury Secretary Scott Bessent described Moody’s recent downgrade of the U.S. credit rating from Aaa to Aa1 as a “lagging indicator” during an interview on NBC News’ Meet the Press. He emphasized that credit rating agencies typically react slowly to economic changes. Moody’s cited rising government debt and interest payment ratios, which have increased significantly over the past decade, as reasons for the downgrade.
Bessent attributed the downgrade to spending policies under the Biden administration, highlighting that the government’s increased expenditure on priorities like climate change and healthcare contributed to the rising debt. He pointed out that the debt accumulation is not new but has been growing since the 1980s, with both Trump and Biden administrations contributing to the current $36.22 trillion national debt.
Bessent Discusses Walmart Tariffs, Trade Talks, and Potential Reversion of Duties
In the interview, Bessent also addressed tariffs, revealing he spoke with Walmart CEO Doug McMillon, who said Walmart would absorb some tariff costs, similar to previous years. Walmart has stated it strives to keep prices low despite tariff pressures. Bessent denied pressuring Walmart and explained he sought direct communication rather than relying on media reports.
Scott Bessent Downplays U.S. Credit Downgrade, Defends Tariff Strategy and Trump-Era Jet Gift Amid ScrutinyBessent mentioned ongoing negotiations with various countries regarding tariffs and trade agreements, including deals with the U.K. and China. He warned that if countries do not negotiate sincerely, tariff rates could revert to higher levels set in April 2023, underscoring the administration’s leverage in trade discussions.
Bessent Defends Jet Gift Amid Criticism, Highlights Investments Over Political Favoritism
Responding to criticism about the Trump administration’s acceptance of a $400 million luxury jet from Qatar, Bessent dismissed concerns, focusing instead on the significant investment deals made during Trump’s Middle East trip. He framed the gifts as benefiting the American people through strengthened economic ties rather than as favoritism or influence-peddling.
Democratic Senator Chris Murphy criticized Bessent’s dismissive tone toward the credit downgrade, warning it signals potential recession and higher borrowing costs for ordinary Americans. Murphy accused the administration of prioritizing wealthy elites over broader economic health, highlighting the political tension surrounding fiscal management and economic outlook.
