The Dow Jones Industrial Average (DJIA) rose on Tuesday as S&P Global reaffirmed its AA+ long-term credit rating for the US, citing positive impacts from President Trump’s tariffs that offset tax breaks and spending increases.
S&P Global stated that rising effective tariff rates would offset weaker fiscal outcomes, meaning the recent legislation could lead to increased revenue despite cuts in taxes and spending. However, the agency also warned of a stable outlook for the US but cautioned about potential risks such as a widening federal deficit or threats to the Federal Reserve’s independence.
President Trump has criticized Fed Chair Jerome Powell for delaying rate cuts, calling him “Too Late.” The Fed is set to meet on September 16-17 to determine its next rate move, with a possible 25 basis point cut.
Source: https://www.tipranks.com/news/dow-jones-climbs-as-sp-affirms-u-s-credit-rating-on-elevated-tariff-revenue