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Reasons for Moody’s “confidence” America won’t experience its first default ever

Moody’s is confident that the United States will not suffer its first-ever default because, ultimately, the country is the issuer of its own debt. The federal government has the ability to raise taxes, adjust spending, or use other fiscal policy measures to make sure their debt obligations are met. In addition, the United States sovereign credit rating has consistently been rated the highest possible grade, signifying strong repayment capacity among other factors.

This makes the US a preferred destination for global investors wanting low-risk investments, and in turn provides the government with ample funds to make any necessary payments. Lastly, Moody’s recognizes the independence of the Central Bank which it believes will keep the US from any default scenarios.