India, May 19 -- European stocks may open on a sluggish note Monday after Moody's downgraded the U.S. credit rating by one notch to Aa1 from Aaa, citing rising levels of government debt and interest payments.
The rating agency warned it expects federal deficits to widen to almost nine percent of economic output by 2035, up from 6.4 percent last year.
The downgrade deals a blow to President Donald Trump's narrative of economic strength and prosperity.
In another development, President Donald Trump's sweeping tax-cut bill has won approval from a key congressional committee to advance towards possible passage in the House of Representatives later this week.
Nonpartisan analysts say the bill would add $3-5 trillion in new debt over the next...