Wall St. Starts Week in a Bad "Moody"

Episode Transcript

Speaker 1 (00:00):
You heard from Courtney Donaho a bit ago. She referenced
the stock market. The trader is unhappy this morning with
the US debt downgrade by Moodies twenty four to seven.
News White House correspondent John Decker joins us for a
little more on that. John, Good morning, including what would
this what could this mean for America and general economically

(00:22):
and specifically for this budget bill they're working on.

Speaker 2 (00:26):
Well, let's talk first about what it means for the
United States. Now, Moodies, that's the credit rating agency that
downgraded the US, is the third major credit rating agency
that no longer gives the US its test rating. Fitch
downgraded the US back in twenty twenty three, Standard and
Pores downgraded the US more than a decade ago. The

(00:48):
new rating decrease could send ripple effects throughout the US economy,
throughout the global economy. We'll see how the market, the
financial markets react when they open in a little over
an hour from now. Well, and this doesn't make it
easier in terms of passing what the President calls that big,
beautiful bill. Now, it made it out of the House
Budget Committee yesterday, but that was because four House Republicans

(01:11):
who would describe themselves as fiscal hawks. They voted just present.
They didn't vote for the bill, and so it'll be
interesting to see how this particular news that came out
after the market closed on Friday will impact their ultimate
vote when it makes it to the House law.

Speaker 1 (01:28):
What does it mean to have your credit rating downgraded
as a.

Speaker 2 (01:32):
Nation, Well, the downgrade is one notch below the highest
TAA rating, and what that means is that these rating
agencies no longer have a full confidence in the credit
worthiness of the US and the reason being is because
of the US government's rising debt levels. And that's what

(01:53):
we hear from the fiscal hawks as well. They're concerned
about that as well, and the bill troubles them because
the bill that the President wants to see past footloads
those tax cuts but backloads those spending cuts.

Speaker 1 (02:07):
Yeah. Well, we're living on borrowed money anyway all the time.
So I know it's not good. It's not good to
be downgraded, but I think it might be in this
case a little bit different from John Decker or Gary
Sadelmeier or Jam Rows having their credit downgraded in terms
of day to day operations. But you're right, it won't

(02:27):
help it won't help with the budget process. So what's
the President up to today, John.

Speaker 2 (02:33):
Well, the President is, as you know, back in Washington,
back at the White House after that four day trip
to the Middle East last week. There's a press briefing
that gets underway at nine am Eastern time, so that's
just right around the corner of The President will sign
a bill today in the Rose Garden with the First
Lady by his side. And that's actually the second piece

(02:55):
of legislation that the President will sign during the course
of his second term, the first one being that Lake
and Riley Act that he signed his first week in office.
So that's what the President has in store today, you know,
back at it after that long trip to the Middle
East last week.

Speaker 1 (03:10):
Very good, John, Thanks John Decker, twenty four seven News