S&P Maintains U.S. Sovereign Rating with Stable Outlook

According to PANews, the S&P has upheld the United States' AA+/A-1+ sovereign rating, maintaining a stable outlook. This decision follows the approval of U.S. President Donald Trump's significant tax and spending legislation by Congress, seven months into his administration, reflecting key policy initiatives. Concurrently, the U.S. government is advancing reforms in the international trade system. Amid rising effective tariff rates, substantial tariff revenue is expected to largely offset potential fiscal weaknesses, which might otherwise have been triggered by recent fiscal bills involving tax increases and decreases, as well as spending adjustments. The stable outlook reflects the agency's expectations regarding several factors: the continued resilience of the U.S. economy, credible and effective monetary policy execution, a high but non-expanding fiscal deficit supporting general government net debt growth, and a $5 trillion increase in the debt ceiling.