Bloomberg News Now May 18, 2025: Markets React to Moody's US Rating Cut, Biden Cancer Diagnosis, More
May 19, 2025
Financial markets are in turmoil following Moody's downgrade of the U.S. credit rating. The discussion dives into the far-reaching implications for economic policy. Health updates on President Biden also make headlines, alongside news of a transit strike resolution. The conversation shifts to upcoming earnings reports from major retailers, painting a picture of the economic landscape.
AI Snips
Chapters
Transcript
Episode notes
Moody's US Credit Rating Downgrade
- Moody's downgraded the U.S. credit rating to AA1 from AAA citing failure to address rising debt and deficits.
- This has led to a risk-off mood in markets, with a weaker dollar and lower equity futures.
Deficit Causes and Fiscal Focus
- Treasury Secretary Scott Besant attributes high U.S. deficits mostly to the Biden administration's spending over four years.
- He emphasizes the Trump administration's focus on reducing federal spending and growing the economy.
US-China Trade and Tariff Strategy
- Trade talks with China continue with a mechanism in place to encourage negotiations.
- Tariffs might be imposed unilaterally on countries that do not negotiate in good faith.