An economist explains why the recent credit rating downgrades for major U.S. banks might not carry a big impact.

The US is no longer a triple-A sovereign credit, but top banks think investors are focused on other market narratives, with volatility to be short-lived.

Moody’s Ratings downgraded the United States’ debt on Friday, stripping the country of its last perfect credit rating. The move could rattle financial markets and push up interest rates, potentially creating an additional financial burden for Americans already struggling with tariffs and inflation.

A global bonds selloff is accelerating on the heels of a U.S. Treasurys rout. "Markets do not find Trump's "big, beautiful tax bill" beautiful at all," an analyst said. Unease with worsening fiscal trajectories is driving the global bond selloff,

The yield on both 10 and 30-year government bonds rose on Monday after another credit ratings agency downgraded the US on Friday.