Scott Bessent calls Moody's a 'lagging indicator' after U.S. credit downgrade

Treasury Secretary Scott Bessent said successful an interrogation connected NBC News' "Meet the Press" that Moody's Ratings were a "lagging indicator" aft the radical downgraded the U.S.' recognition standing by a notch from the highest level.

"I deliberation that Moody's is simply a lagging indicator," Bessent said Sunday. "I deliberation that's what everyone thinks of recognition agencies."

Moody's said past week that the downgrade from Aaa to Aa1 "reflects the summation implicit much than a decennary successful authorities indebtedness and involvement outgo ratios to levels that are importantly higher than likewise rated sovereigns."

The treasury caput asserted that the downgrade was related to the Biden administration's spending policies, which that administration had touted arsenic investments successful priorities, including combatting clime alteration and expanding wellness attraction coverage.

"Just similar Sean Duffy said with our aerial postulation power system, we didn't get present successful the past 100 days," Bessent continued, referring to the proscription secretary. "It's the Biden medication and the spending that we person seen implicit the past 4 years."

The U.S. has $36.22 trillion successful nationalist debt, according to the Treasury Department. It began increasing steadily successful the 1980s and continued expanding during some President Donald Trump's archetypal word and erstwhile President Joe Biden's administration.

Bessent besides told moderator Kristen Welker that helium spoke connected the telephone with the CEO of Walmart, Doug McMillon, who the treasury caput said told him the retail elephantine would "eat immoderate of the tariffs, conscionable arsenic they did successful '18, '19 and '20."

Walmart CFO John David Rainey previously told CNBC that Walmart would absorb some higher costs related to tariffs. The CFO had also told CNBC separately that helium was "concerned" consumers would "start seeing higher prices," pointing to tariffs.

Trump said successful a station to Truth Social past week that Walmart should "eat the tariffs." Walmart responded, saying the institution has "always worked to support our prices arsenic debased arsenic imaginable and we won't stop."

"We'll support prices arsenic debased arsenic we tin for arsenic agelong arsenic we tin fixed the world of tiny retail margins," the connection continued.

When asked astir his conversation, Bessent denied helium applied immoderate unit connected Walmart to "eat the tariffs," noting that helium and the CEO "have a precise bully relationship."

"I conscionable wanted to perceive it from him, alternatively than second-, third-hand from the press," Bessent said.

McMillon had said connected Walmart's earnings call that tariffs person enactment unit connected prices. Bessent argued that companies "have to springiness the worst lawsuit scenario" connected the calls.

The White House has said that countries are approaching the medication to negociate implicit tariffs. The medication has besides announced commercialized agreements with the United Kingdom and China. 

Bessent said connected Sunday that helium thinks countries that bash not negociate successful bully religion would spot duties instrumentality to the rates announced the time the medication unveiled across-the-board tariffs.

"The negotiating leverage that President Trump is talking astir present is if you don't privation to negotiate, past it volition outpouring backmost to the April 2 level," Bessent said.

Bessent was besides asked astir Trump saying the medication would accept a luxury pitchy from Qatar to beryllium utilized arsenic Air Force One, infuriating Democrats and drafting disapproval from some Republicans as well. 

The treasury caput called questions astir the $400 cardinal acquisition an "off ramp for galore successful the media not to admit what an unthinkable travel this was," referring to concern commitments the president received during his travel past week to Saudi Arabia, Qatar and the United Arab Emirates.

"If we spell backmost to your archetypal question connected the Moody's downgrade, who cares? Qatar doesn't. Saudi doesn't. UAE doesn't," helium said. "They're each pushing wealth in."

When asked for his effect to those who reason that the pitchy sends a connection that countries tin curry favour with the U.S. by sending gifts, Bessent said that "the gifts are to the American people," pointing to concern agreements that were unveiled during Trump's Middle East trip. 

Sen. Chris Murphy, D-Conn., criticized Bessent's comments astir the recognition downgrade, saying successful a abstracted interrogation connected "Meet the Press."

"I heard the treasury caput accidental that, 'Who cares astir the downgrading of our recognition standing from Moody's?' That is simply a large deal," Murphy said.

"That means that we are apt headed for a recession. That astir apt means higher involvement rates for anybody retired determination who is trying to commencement a concern oregon to bargain a home," helium continued. "These guys are moving the system recklessly due to the fact that each they attraction astir is the wellness of the Mar-a-Lago billionaire class."