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.

The international credit agency Moody's has downgraded the U.S.' credit rating from its highest AAA rating to Aa1. CBS News senior business and technology correspondent Jo Ling Kent explains what the move could mean for the average American.

US stocks took a hit on Monday while Treasury yields rose as Wall Street processed Moody's downgrade of the US credit rating alongside developments in President Trump's tariff salvos. Moody’s cut the US government’s long-term credit rating from AAA to AA1 late Friday,