2 Question Tuesday – 05/20/2025 – If Congress Doesn’t Pass a Tax Cut How Will the Market React? Moody’s Downgraded the U.S.’s Credit, What Does This Mean for Bonds and the Economy?
Welcome to 2 Question Tuesday. This week’s questions were:
- If Congress doesn’t pass a tax cut how will the market react?
- Moody’s downgraded the U.S.’s credit, what does this mean for bonds and the economy?
Phil, Mike, and Larry discuss the five Republican hard-liners who voted against President Trump’s massive tax cut bill, called the Big Beautiful Bill, and what the market’s reaction will be if there is no tax cut. Also last week, Moody’s Ratings Agency downgraded the United States’ credit a notch to Aa1 from the highest rating, triple A. It cited the government’s massive budget deficit amid high interest rates, which is higher than similarly rated sovereigns. They then talk about what this means for the bond market and the economy in general.
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