Moody cited rising debt, saying we have repeatedly failed to end the trend of annual fiscal deficits and interest.

Moody's rating has deprived the U.S. government of its highest credit rating on the grounds that the government has failed to stop rising debt.

Moody's downgraded the rating from gold standard AAA to AA1 on Friday. "The continuous U.S. government and Congress failed to reach a consensus on a trend to reverse large annual fiscal deficits and growing interest costs," it said.

However, it added that the U.S. “remains excellent credit advantages such as the size, resilience and vitality of its economy and the role of the U.S. dollar as a global reserve currency.”

Moody's is the last of three major rating agencies to lower the federal government's credit rating. S&P lowered federal debt in 2011, and Fitch's rating was 2023.

"We expect the federal deficit to widen, with the difference of nearly 9% (the U.S. economy) by 2035, up from 6.4% in 2024, mainly due to increased debt spending, rising stock spending and increased interest payments for relatively low incomes.

Moody's said expanding President Donald Trump's 2017 tax cuts, a priority for the Republican-controlled Congress, will add $4 trillion over the next decade to increase the major federal deficit, which does not include interest payments.

The White House took a positive tone for Moody's after scoring agencies lowered their U.S. credit ratings.

White House Communications Director Steven Cheung responded to the downgrade through a social media post, picking Moody's economist Mark Zandi for criticism. He called Zandi a political opponent to Trump.

Zhang said: "No one takes his analysis seriously.

The deadlocked political system cannot solve the huge deficit accumulated by the United States. Republicans refuse to increase taxes, and Democrats are reluctant to cut spending.

House Republicans failed to push for massive tax breaks and budget committee spending cuts Friday. A small group of tough Republican lawmakers insist on steeper cuts to Medicaid and President Joe Biden’s green energy tax breaks, opposing all Democrats, a rare political setback for the Republican president.