Moody's Foster Says U.S. Fiscal Strength to Decline Gradually

The video discusses the US deficit, highlighting its growth due to tax cuts and increased spending. It projects a rise in the deficit from 4% to 8% of GDP over the next decade without policy changes. The US's ability to sustain debt is supported by its large economy and reserve currency status. However, tax cuts have reduced federal revenue, particularly from corporate taxes. Entitlement reform is suggested as a solution to improve fiscal health.

In what ways does the US's status as the reserve currency of choice affect its ability to finance deficits?

What is the significance of entitlement reform in addressing US fiscal health?