Moody's Warns It May Lower US Credit Rating

Tick tock on those debt ceiling talks: Moody's is threatening to lower the United States' credit rating, saying there is a small but rising risk that the government will default on its debt. The credit rating agency says it will review the federal government's triple-A bond rating because the White House and Congress are running out of time to raise the nation's $14.3 trillion borrowing limit and avoid a default.

A downgrade would raise interest rates on US treasury bonds, increasing the interest paid by US taxpayers. It would also push up rates for mortgages, car loans, and other debts, which are linked to Treasury rates. (More Moody's stories.)