Instant view: Moody's puts U.S. rating on review for downgrade
NEW YORK (Reuters) - Moody's Investors Service said it may cut the United States' triple-A rating due to the rising chance its debt ceiling is not raised.
COMMENTS:
PAUL SCHATZ, PRESIDENT AND CHIEF INVESTMENT OFFICER, HERITAGE CAPITAL, WOODBRIDGE, CONNECTICUT:
"The rating agencies were so slow to respond to anything in 2007 and 2008 that now they're overly quick to respond. I don't think this is a big deal and I don't think it will move the needle for long. This will be a short-term issue, no more than half a day. The way people are reacting to the debt ceiling issue you'd think we were in the middle of a tailspin. But the market is very resilient now, and it's taking all this in stride. There's no chance of a default. This is just a tiny hiccup."
BRIAN DOLAN, CHIEF STRATEGIST, FOREX.COM, BEDMINSTER, NEW JERSEY:
WARD MCCARTHY, CHIEF FINANCIAL ECONOMIST, JEFFERIES & CO., NEW YORK:
"They've been threatening this for a while and they're just increasing the drumbeat. It's time for our elected officials to do what they were elected to do. This was a warning shot across the bow.
MARKET REACTION: STOCKS: U.S. stock index futures fell BONDS: U.S. bond prices fell and yields rose FOREX: The dollar fell against the euro and yen