US Borrowing Costs Rise After Credit Downgrade

The downgrade of the U.S.’s sovereign credit rating has caused borrowing costs for the U.S. government to rise. Reasons for the downgrade include questions about the sustainability of the U.S. debt burden, especially amid higher interest rates. However, the U.S. remains in the Grade A category, which allows financial institutions to continue holding U.S. treasuries and stay in compliance with banking rules. The downgrade comes as Congress attempts to pass a bill that is forecasted to add up to $5.2 trillion to the national debt over 10 years. 

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