Part 2/7:
Guha highlighted that the downgrade from Moody’s does not introduce new information. He believes the circumstances surrounding the U.S. deficit and tax legislation were already on the radar. The concerns raised stem more from the long-standing structural deficits projected at around 6.5% to 7%. These deficits, compounded by rising entitlement spending, position the U.S. fiscal situation precariously, particularly as global interest in U.S. Treasury securities seems to wane.