The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.

Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.

Yields in the Treasury market are rising, threatening to make it more expensive for consumers and the U.S. to manage debt.

The U.S. dollar traded sideways on Tuesday after a week-long decline, pressured by cautious signals from the Federal Reserve and rising concerns over the growing U.S. fiscal deficit. Market focus has shifted to a key

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