Treasury Secretary Scott Bessent Slams Moody recent credit downgrade of the United States, calling the move a “lagging indicator” during an interview on NBC News’ Meet the Press.
“I think that Moody’s is a lagging indicator,” Bessent said Sunday. “I think that’s what everyone thinks of credit agencies.”
The remarks came after Moody’s Investors Service lowered the U.S. credit rating from Aaa to Aa1, citing a long-term rise in government debt and interest payments. The agency said these financial burdens have grown to levels “significantly higher than similarly rated sovereigns,” prompting the downgrade.
Bessent placed the blame on the Biden administration’s spending priorities, which the White House has defended as necessary investments in climate initiatives, infrastructure, and expanded healthcare coverage.
“Just like Sean Duffy said with our air traffic control system, we didn’t get here in the past 100 days,” Bessent said, referring to Transportation Secretary Sean Duffy. “It’s the Biden administration and the spending that we have seen over the past four years.”
As of May 2025, the U.S. national debt has reached $36.22 trillion, according to the Treasury Department. The debt has been climbing steadily for decades, accelerating during both the Trump and Biden administrations.
Bessent also discussed the impact of tariffs on American consumers and said he had recently spoken with Walmart CEO Doug McMillon. According to Bessent, the retail giant plans to absorb some of the costs associated with new tariffs, similar to actions taken between 2018 and 2020.
“Walmart will eat some of the tariffs, just as they did in ’18, ’19, and ’20,” Bessent stated.
Walmart’s Chief Financial Officer John David Rainey previously told CNBC the company would manage some of the increased costs due to tariffs, although he also expressed concerns that consumers might eventually feel the effects through higher prices.
The Biden administration has not yet responded directly to Bessent’s comments.
Also Read: Trump’s Gulf Fascination: What It Reveals About His Vision for America
Former President Donald Trump recently urged Walmart on Truth Social to “eat the tariffs.” In response, Walmart stated it has “always worked to keep our prices as low as possible” and will continue to do so despite tight margins.
Treasury Secretary Scott Bessent, who spoke directly with Walmart CEO Doug McMillon, denied pressuring the company, saying, “We have a very good relationship. I just wanted to hear it from him directly.”
Bessent Defends Trump Tariff Strategy, Downplays Credit Downgrade Amid Jet Gift Controversy
Treasury Secretary Scott Bessent defended the Trump administration’s trade tactics and brushed off concerns over Moody’s recent U.S. credit downgrade, calling it irrelevant to global investors. Speaking on NBC’s Meet the Press, Bessent said that companies like Walmart are simply outlining “worst-case scenarios” in earnings calls when they cite tariff-related pricing pressure.
He reinforced Trump’s message that countries unwilling to negotiate on tariffs would face the full rates announced on April 2. “The negotiating leverage President Trump is talking about is real,” Bessent said, highlighting new trade agreements with the U.K. and China, and ongoing discussions with other nations.
Bessent also addressed backlash over Trump’s acceptance of a $400 million luxury jet from Qatar to be used as Air Force One. Critics, including Sen. Chris Murphy (D-Conn.), say the move sends the wrong message globally. But Bessent dismissed concerns, calling the outrage a media “off-ramp” from acknowledging the administration’s successful investment deals in the Middle East.
“The gifts are to the American people,” Bessent said. “Saudi, UAE, Qatar — they’re all pushing money in. Who cares what Moody’s says?”
Scott Bessent pushes back on Moody’s U.S. credit downgrade, calling it outdated and pointing to Biden’s spending as the root cause.
Sen. Murphy, however, warned the downgrade signals economic trouble. “This likely means a recession and higher interest rates for working Americans. These guys are running the economy recklessly,”
