White House communications director Steven Cheung criticized Moody’s decision to downgrade the U.S. sovereign credit rating from Aaa to Aa1, following concerns about the nation’s escalating $36 trillion debt. This downgrade means the U.S. government no longer holds a top rating from any major credit rating agency. Cheung’s response came via social media, where he targeted Mark Zandi, Moody’s economist, labeling him a political adversary of former President Trump. He described Zandi as an advisor to President Obama and a donor to Hillary Clinton, asserting that Zandi has been “a Never Trumper since 2016” and claiming that “nobody takes his analysis seriously” given his past inaccuracies.
The downgrade coincided with congressional lawmakers grappling with the development of a substantial tax package supported by Trump. This package aims to renew tax cuts from Trump’s first term in 2017 and introduce additional reductions promised during his recent campaign. However, the effort faced hurdles as hardline conservatives and Democrats united to prevent a key House committee from advancing the package, raising concerns over its potential costs.
Trump, currently traveling abroad, has not publicly commented on the credit rating downgrade. Overall, the downgrade by Moody’s and the political debates surrounding the tax package reflect ongoing tensions about fiscal policy and governance in the United States.
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