Further Downgrades of U.S. Treasuries Likely if Key Factors Fail
Recent downgrades from Moody’s regarding U.S. long-term debt raise concerns for investors. The potential for further downgrades looms larger if key economic assumptions do not hold. Moody’s specifically highlights issues such as the Fed’s independence, checks and balances within the government, and the status of the U.S. dollar as a global reserve currency.