The news: Moody’s Investors Service downgraded the US government’s credit rating, removing its last remaining AAA score from a major international ratings agency.

How we got here: In a recent press release, Moody’s cited long-term failure by US administrations and Congress to manage rising fiscal deficits and control the national debt trajectory. 

It stated that “over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat. In turn, persistent, large fiscal deficits will drive the government’s debt and interest burden higher. The US’ fiscal performance is likely to deteriorate relative to its own past and compared to other highly-rated sovereigns.”