Moody's downgrades the U.S. sovereign rating; analysts say the U.S. fiscal path is "unsustainable."

The rating agency Moody's downgraded the U.S. sovereign credit rating by one notch on Friday, citing concerns over the country's growing $36 trillion debt. Morgan Stanley strategist Michael Zezas pointed out that politically feasible fiscal solutions in the short term may lead to an expansion of the deficit without providing meaningful fiscal stimulus to the economy. Anne Walsh, Chief Investment Officer of Guggenheim Partners Investment Management, stated that if Washington does not implement substantial measures aimed at significantly resetting spending levels, the U.S. fiscal path is unlikely to improve significantly, and said, "We are on an unsustainable path."