The warning last week by Moody’s Investors Service that it could soon downgrade the U.S. credit rating should get lawmakers’ attention. Moody’s said that political gamesmanship over raising the government’s debt ceiling has been worse than expected and that if progress toward increasing the limit isn’t made by mid-July, Moody’s may downgrade the rating. “The heightened polarization over the debt limit has increased the odds of a short-lived default,” Moody’s analysis said. In April, Standard & Poor’s lowered its U.S. debt outlook to “negative” out of concern that lawmakers wouldn’t be able to agree on a debt-reduction plan.
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