A Critical Takedown: The White House's Blistering Attack on Mark Zandi
White House at odds with Moody's top economic expert
By Alex Wehnert, New York
In a blistering response, the White House unleashed a savage remark towards Mark Zandi, the chief economist at Moody's. "No one takes his analyses seriously," the White House lashed out in late May, slamming Zandi for his forecasts that they deemed "bogus." Their fiery words followed Moody's downgrade of the United States' creditworthiness from the coveted "Aaa" to "Aa1", stripping it of its top ranking from the big three rating agencies. S&P and Fitch had already downgraded in 2011 and 2023 due to recurring debt and budget spats in Congress.
But there's more to this story than meets the eye. Steven Cheung, a Trump administration spokesperson, exclusively pointed the finger at Zandi, branding him as a lifelong adversary of Trump's policies. Cheung highlighted Zandi's associations, stating he's previously served as an advisor to the Obama administration and has been a generous donor to the Clintons, while declaring his status as a "Never Trumper" since 2016 [1][2][3]. The White House further chided Zandi by asserting that his analysis has been persistently off target [2][4].
The Moody's downgrade stemmed from worries about the U.S.'s fiscal situation, including substantial annual deficits and mounting interest expenses. The agency conceded that despite the nation's economic powerhouses, these fiscal challenges have swelled substantially over the past decade, resulting in a debt burden greater than similarly rated countries [1][2]. This downgrade is viewed as part of broader economic and political conflicts, with the White House defending its economic policies while accusing Moody's of political prejudices [3][4].
The White House's disagreement with Mark Zandi, the chief economist at Moody's, extends beyond economics to politics, as Zandi has been criticized for his perceived bias against the Trump administration's policy-and-legislation, given his past role as an advisor to the Obama administration, his generous donations to the Clintons, and his public stance as a "Never Trumper" since 2016. This controversy has ignited debates about the role of general-news outlets, particularly Moody's, in policy analyses and their potential for legislative influence.
