President Trump has made his disapproval of Fed Chair Jerome Powell quite clear over the past few months, blaming him for costing the U.S. billions of dollars by not reducing interest rates. On Thursday, he directed yet another Truth Social post at Powell.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
“‘Too Late’ DEMEANS THE GREAT CREDIT OF THE USA. We are now, again, the Number One Credit in the World! ‘Gigantic Comeback.’ The Fed Rate should be reflective of this. We should be at the top of the list!!! LOWER THE RATE!!!” said Trump.
What is the U.S.’ Credit Rating?
Trump’s statement isn’t exactly accurate, as the U.S. doesn’t have the highest credit rating in the world. The U.S. has the world’s second-highest credit rating, tied with five other countries, based on S&P Global’s (SPGI) rating. Moody’s (MCO) also assigns the U.S.—tied with Austria and Finland—the world’s second-highest rating. In May, Moody’s shocked the markets after lowering the U.S. credit rating to Aa1 from Aaa. Aaa is Moody’s highest possible credit rating.
According to TipRanks’ Trump Dashboard, Bank of America (BAC), JPMorgan Chase & Co. (JPM), Goldman Sachs (GS), and three other stocks will likely be affected by Trump’s post.
