The Treasury Secretary, Scott Besent, said in an interview in “Meet The Press” of NBC News that Moody’s qualifications were a “lagged indicator” after the group reduced the United States credit rating by a notch from the highest level.
“I think Moody’s is a lagged indicator,” Besent said Sunday. “I think that’s what everyone thinks about credit agencies.”
Moody’s said last week that AA1’s reduction “reflects the increase in more than a decade in government payment rates and interest at levels that are significantly higher than sovereigns of similar qualification.”
The Secretary of the Treasury said that the reduction was related to the Biden Administration expenses policies, that this administration had promoted as investments in priorities, including combating climate change and the increase in medical care coverage.
“Just as Sean Duffy said with our air traffic control system, we did not arrive here in the last 100 days,” Besent continued, referring to the Secretary of Transportation. “It is the Biden administration and the expense we have seen in the last four years.”
The United States has $ 36.22 billion in national debt, according to the Department of Treasury. He began to grow constantly in the 1980s and continued to increase during President Donald Trump’s first mandate and the administration of former President Joe Biden.
Besent also told Moderator Kristen Welker who spoke by phone with the Walmart CEO, Doug McMillon, who said the Treasury secretary, told him that the retail giant “would eat some of the rates, as they did in the ’18, ’19 and ’20”.
Walmart’s financial director John David Rainey, previously told CNBC that Walmart would absorb some higher costs related to tariffs. The CFO had also told CNBC separately that it was “worried” that consumers “would begin to see higher prices,” noting tariffs.
Trump said in a publication to Truth Social last week that Walmart should “eat rates.” Walmart replied, saying that the company “has always worked to keep our prices as low as possible and that we will not stop.”
“We will keep the prices as low as we can during the time we can give the reality of the small retail margins,” the statement continued.
When asked about his conversation, Besent denied having applied some pressure on Walmart to “eat tariffs”, pointing out that he and CEO “have a very good relationship.”
“I just wanted to listen to him, instead of second, third hand from the press,” Bessent said.
McMillon had said in Walmart’s call call that tariffs have pressed prices. Besent argued that companies “have to give the worst case” in calls.
The White House has said that countries are approaching the administration to negotiate on tariffs. The administration has also announced trade agreements with the United Kingdom and China.
Besent said Sunday that he believes that countries that do not negotiate in good faith would make the duties return to the rates announced on the day the administration announced the plaque rates.
“The negotiation leverage of which President Trump is talking here is whether he does not want to negotiate, then he will return to the level of April 2,” Besent said.
Besent was also asked about Trump saying that the administration would accept a luxury plane from Qatar to be used as Air Force One, enraging Democrats and causing criticism of some Republicans as well.
The Treasury Secretary called the questions about the $ 400 million gift a “discount ramp for many in the media so as not to recognize what incredible trip this was”, referring to the investment commitments that the president received during his trip last week to Saudi Arabia, Qatar and the United Arab Emirates.
“If we return to your initial question about the reduction of Moody’s, who cares? Qatar does not. Saudi no. Eau no,” he said. “Everyone is pushing money.”
When their response was asked to those who argue that the plane sends a message that countries can cure the United States by sending gifts, Besent said that “the gifts are for the American people,” pointing out the investment agreements that were revealed during Trump’s trip in the Middle East.
Senator Chris Murphy, D-Conn., Criticized Besent’s comments on the credit reduction, saying in a separate interview about “Meet the Press.”
“I heard the Secretary of the Treasury say that” who cares for the degradation of our Moody’s credit qualification? “That is a big problem,” Murphy said.
“That means that we probably go to a recession. That probably means higher interest rates for anyone who is trying to start a business or buy a house,” he continued. “These guys are directing the economy recklessly because all that care is the health of the Mar-A-Lago multimillionaire class.”
