Deutsche Bank strategist Jim Reid likened the U.S. fiscal trajectory to a “death by a thousand cuts," Fortune reported. The comment followed Moody’s downgrade of the nation’s credit rating from Aaa to Aa1—the final top-tier rating lost by the U.S. among major agencies. Reid warned that the slow drip of negative fiscal developments is pushing the country closer to a breaking point, with the national debt now exceeding $36.2 trillion. He argued that the downgrade adds pressure to an already fragile debt sustainability threshold. Economists are increasingly concerned that the rising U.S. national debt and interest payments may outpace economic growth, threatening the country's ability to sustain its current spending levels.
