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U.S. credit downgrade reflects growing acknowledgement of "political turmoil," says economist

Nina Eichacker, an economics professor at the University of Rhode Island, says the downgrade speaks to a “growing disparity between an administration that talks about wanting to reduce the debt and then pursues policies that do anything but.”

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Stocks on Monday were down sharply as traders reacted to Moody's downgrading the United States' credit rating.
Stocks on Monday were down sharply as traders reacted to Moody's downgrading the United States' credit rating.
Spencer Platt/Getty Images

On Friday, Moody's joined Fitch and S&P to downgrade the credit rating of the U.S.’s sovereign debt from AAA to AA1, a notch below the highest score, over concerns with the nation's rising debt and deficits.

Nina Eichacker is a professor of economics at the University of Rhode Island. She joined “Marketplace” host Kai Ryssdal to talk about how bond markets are supposed to react when the chaos agent is the government itself.

To hear their conversation, use the audio player above.

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