Key Facts

• Moody's downgraded the US government's credit rating, citing rising debt over the past decade.
• The interest rate on US government long-term debt surpassed 5% for the first time since 2007.
• Government bonds, or Treasuries, are loans that investors make to the government in exchange for interest payments over time.
• The downgrade could lead to higher interest rates on various types of loans, making borrowing more expensive for people and businesses.
• Congress is working on a tax-and-spending bill that may add at least $3 trillion to the existing $36 trillion US debt over the next decade.
• Increased interest payments on debt may take up a larger portion of the government's budget, potentially affecting public spending.
• Higher government interest rates could lead to higher interest rates on mortgages and credit cards for consumers.
• Moody's action reflects concerns about the US government's ability to manage its debt and economic policies effectively.