Debt, Tariffs Remain Thorny Issues for GOP and Trump

President Donald Trump enjoyed a Middle East sojourn that included greetings fit for a king along with engaging in his favorite pastime: announcing business deals that involve investments in America and sales of U.S. goods to foreign nations.

But he returns to some late-week road bumps as Moody’s on Friday joined the two other leading credit ratings agencies in downgrading U.S. debt from the highest Aaa to Aa1. Fitch lowered its rating in 2023 to AA+, while S&P made that move back in 2011.

“It's the Biden administration and the spending that we have seen over the past four years that we inherited, 6.7% deficit to GDP (gross domestic product), the highest when we weren't in a recession, not in a war,” Treasury Secretary Scott Bessent said Sunday in an appearance on “Meet the Press.” “And we are determined to bring the spending down and grow the economy.”

Then, a few Republican holdouts helped derail the GOP’s budget plan in a key committee vote over concerns the proposal calls for increased spending and does nothing to tame the federal debt. In a late-night vote Sunday, the committee did pass the legislation and send it on for full House debate later this week, but questions remain among GOP conservatives.