US Treasury Secretary Scott Bessent has shrugged off Moody’s decision to downgrade the United States’ credit rating, calling it a “lagging indicator” and blaming the move on the Biden administration’s past spending policies.

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Speaking on NBC’s Meet the Press, Bessent downplayed concerns over the agency’s decision to lower the US rating from Aaa to Aa1, saying credit agencies “aren’t forward-looking” and claiming the downgrade reflects outdated fiscal decisions.

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“I think that Moody’s is a lagging indicator,” he said. “That’s what everyone thinks of credit agencies.” He also took aim at the previous administration, saying: “We didn’t get here in the past 100 days. It’s the Biden administration and the spending we’ve seen over the past four years.”

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Moody’s said the downgrade was prompted by a long-term increase in government debt and interest obligations, now significantly higher than other similarly rated economies. The move could lead to higher borrowing costs and pressure on future federal budgets.

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The US currently holds over $36 trillion in national debt, a figure that has grown steadily under both Democratic and Republican leadership.

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Bessent’s appearance came at a delicate moment for the US economy. He confirmed speaking directly with Walmart CEO Doug McMillon, who he claimed agreed to absorb some of the costs from President Donald Trump’s sweeping new tariffs — echoing similar assurances made during Trump’s first term. Walmart has not explicitly confirmed that it will do so this time, though it has said in the past it works to keep prices “as low as possible.”

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Asked whether he pressured the company, Bessent denied any heavy-handed tactics, saying he simply wanted to hear it “firsthand.”

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The Biden-era spending Bessent criticised includes outlays on climate action, healthcare and infrastructure. The treasury secretary suggested that reining in such investments would help stabilise the country’s finances — even as the Trump administration rolls out costly new tariffs and tax policies of its own.

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Democratic Senator Chris Murphy, responding separately on the same programme, warned that dismissing the downgrade could be dangerous. “That means that we are likely headed for a recession,” he said. “These guys are running the economy recklessly because all they care about is the health of the Mar-a-Lago billionaire class.”

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Bessent also brushed off criticism of the Trump administration’s decision to accept a $400 million private jet from Qatar for use as Air Force One. “Who cares?” he said, when asked about the optics. “Qatar doesn’t. Saudi doesn’t. UAE doesn’t. They’re all pushing money in.”

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The real test, Bessent argued, isn’t credit agency assessments but the flow of foreign investment. “The gifts are to the American people,” he said, referring to infrastructure and capital deals announced during Trump’s recent Middle East tour.

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Whether markets agree remains to be seen. But for now, the Treasury seems determined to keep its focus on investor confidence — even if ratings agencies aren’t convinced.

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