Moody’s Ratings has downgraded the deposit ratings of major U.S. banks, including Bank of America Corporation (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Company (NYSE:WFC), following the recent downgrade of the U.

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

The Moody’s announcement sent the yield on a 30-year Treasury bond to a high of 5.01% at one point on Monday. Bond yields rise as bond prices fall. When a selloff hits and demand for bonds dries up, it sends bond prices lower. In turn, bond yields move higher.

Moody’s Ratings on Monday downgraded the long-term ratings of several of America’s largest banks, including JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), and Wells Fargo & Company (NYSE:WFC),

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

Stocks slumped at the open of trading on Monday after a downgrade of U.S. credit triggered a spike in debt yields that threatened to raise borrowing costs throughout the nation's economy. The Dow Jones Industrial Average dropped 295 points, or 0.7%, while the S &P 500 fell 0.9%. The tech-heavy Nasdaq plunged 1.2%.

Moody's has downgraded a few major banks' long-term credit and deposit ratings, after it lowered the U.S. sovereign credit ratings. Major banks, including JPMorgan JPM, Bank of Am

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