Moody’s Ratings downgraded the United States’ debt on Friday, stripping the country of its last perfect credit rating. The move could rattle financial markets and push up interest rates, potentially creating an additional financial burden for Americans already struggling with tariffs and inflation.

The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.

Moody's becomes latest major credit rating agency to downgrade US' 'perfect' long-term credit rating - Anadolu Ajansı

Changes to the country’s credit rating impact interest consumers pay on household debt like mortgages, car loans and credit cards

U.S. stocks open lower after Moody's stripped the U.S. of its top credit rating. Treasury yields jump as investors demand more payout to hold US debt.