Moody’s US downgrade may curb Trump tax cuts, but bond markets stay calm, for now
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Moody's downgrade of US debt, while unlikely to cause immediate market turmoil, may curb Trump's tax cut ambitions. The US debt-to-GDP ratio is high, but manageable, supported by the dollar's dominance and demand from export-surplus nations. However, bond markets are wary of US fiscal policy, and Congress may temper Trump's economic agenda in response to concerns.
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