In an interview with NBC News, Treasury Secretary Scott Bessent said in “Meet the Press” that Moody’s rating is a “lagging indicator” after the group downgrades its US credit rating from the highest level.
“I think Moody is an indicator of lagging behind,” Bescent said Sunday. “I think that’s what everyone thinks about credit institutions.”
Moody’s last week said the downgrade from AAA to AA1 “reflects a decade-plus increase in government debt and interest payment rates to a level significantly higher than the sovereigns, which are similarly valued.”
The Treasury Secretary argued that the downgrade was related to the Biden administration’s spending policy. The administration was promoting it as an investment in priorities, including fighting climate change and increasing healthcare coverage.
“We haven’t been here for the past 100 days, as Sean Duffy said in the air traffic control system,” Bescent continued, referring to the Transportation Secretary. “That’s the Biden administration and the spending we’ve seen over the past four years.”
The United States has $36.22 trillion in national debt, according to the Treasury Department. It began to grow steadily in the 1980s, continuing to increase both in President Donald Trump’s first term and in former President Joe Biden’s administration.
Bescent also told moderator Kristen Welker that he spoke on the phone with Walmart CEO Doug McMillon, who told the Treasury Secretary that the retailer said “we eat tariffs just like we do in 18, ’19 and ’20.”
Walmart CFO John David Rainey previously told CNBC that Walmart will absorb some higher costs associated with tariffs. The CFO also told CNBC individually he is “concerned” that consumers will start to see higher prices.
In a true social post last week, Trump said Walmart should “eat tariffs.” Walmart replied that the company has always worked to keep prices as low as possible, but it never stops.
“We will keep the reality of retail margins as low as possible, as possible, prices as possible,” the statement continued.
When asked about his conversation, Bescent denied pressured Walmart to “eat tariffs,” noting that he and the CEO “have a very good relationship.”
“I just wanted to hear that from him.
MacMillon said in a call to Walmart’s revenue, tariffs were putting pressure on prices. Bessent argued that companies must “specify the worst-case scenario.”
The White House says the country is approaching administration to negotiate tariffs. The administration has also announced a trade agreement between the UK and China.
Bescent said on Sunday that countries that do not negotiate in good faith believe that their duties will return to the rates announced on the day the administration announced the entire ship.
“The leverage of negotiations that President Trump is talking about here will return to the level that was on April 2 if he doesn’t want to negotiate,” Bescent said.
Bescent was also asked about Trump that the administration would accept a gorgeous jet from Qatar, which will be used as Air Force 1, pissed Democrats and elicited criticism from some Republicans.
The Treasury Secretary called the question about the $400 million gift “off ramp for many of the media to not acknowledge that this is an incredible trip.”
“Back to the first question about downgrades of Moody, who cares? Qatar doesn’t. The Saudi Arabia don’t. “They’re all pushing money in.”
When Jet asked for his response to those who claimed that the country would send a message that favors could be curryed to the United States by sending gifts, Bescent said, “The gift lies with the American people.”
D-Conn. Sen. Chris Murphy of the company criticized Bessent’s comments on the credit downgrade, saying in another interview on “Meet the Press.”
“I heard the Treasury Secretary say, ‘Who cares about the downgrade of his credit rating from Moody’s?’ That’s a big deal,” Murphy said.
“That means we are likely heading into a recession, which probably means higher interest rates for people who are about to start a business or buy a home,” he continued. “These people are the only thing they care about is the health of the Mar-a-Lago billionaire class.”
