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19.08.25 - 22:12
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S&P Reaffirms U.S. Credit Rating, Citing Tariff Revenues Amid Fiscal Pressures (ZeroHedge)
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S&P Reaffirms U.S. Credit Rating, Citing Tariff Revenues Amid Fiscal Pressures
S&P Global Ratings affirmed the United States' sovereign credit ratings, saying tariff revenues under the Trump administration's new trade policies should help cushion the fiscal impact of recent tax and spending legislation.
The ratings agency kept the U.S. at AA+/A-1+ with a stable outlook.
“The stable outlook indicates our expectation that although fiscal deficit outcomes won't meaningfully improve, we don't project a persistent deterioration over the next several years,” S&P said in its statement.
The firm pointed to broad economic resilience, policy continuity, and strong revenue streams, including what it described as “robust tariff income” - as offsets to fiscal slippage stemming from legislative changes. While acknowledging concerns that tariffs could dampen business confidence, growth, and hiring while spurring inflation, S&P said revenue gains would help balance the ledger, WSJ reports.
The a...
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