by Adam Sharp
Daily Reckoning
On Friday, ratings agency Moody’s finally downgraded America’s credit rating from AAA to AA+.
Yawn.
A ratings downgrade is a classic lagging indicator. By the time it happens, the market already knows.
And, no, the downgrade had nothing to do with Trump’s tariffs. The other big ratings agencies downgraded U.S. credit long ago; S&P in 2011, and Fitch in 2023.
Moody’s appears to have delayed the inevitable for as long as possible. When it comes to downgrading the world’s largest borrower, politics plays a role.