- S&P Global reaffirmed its AA+ credit rating and stable outlook last week owing in part to “robust tariff income,” which should help offset the impact of tax cuts and spending in the federal budget. While S&P doesn’t see meaningful improvement in the fiscal deficit, it doesn’t expect steep deterioration either. However, reciprocal tariffs face legal challenges and could be struck down.
Ratings agency S&P Global had some good news and bad news on the U.S. deficit outlook. The good news is that it won’t get much worse. The bad news is that it won’t get much better, either.
