The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.

Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.

Yields in the Treasury market are rising, threatening to make it more expensive for consumers and the U.S. to manage debt.

Moody’s downgrades the U.S. credit rating for the first time since 1919, citing rising debt. Crypto markets react with Bitcoin and Ethereum slipping as investors weigh broader economic risks.

The U.S. dollar traded sideways on Tuesday after a week-long decline, pressured by cautious signals from the Federal Reserve and rising concerns over the growing U.S. fiscal deficit. Market focus has shifted to a key