Asian indexes turned lower on Monday as U.S. futures dipped after Moody’s downgraded the U.S. credit rating to Aa1 from Aaa on Friday, citing a deteriorating fiscal trajectory and “a lack of effective policy action” to rein in deficits.

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.

The downgrade, which places the U.S. government one notch below Moody’s top Aaa status, comes as lawmakers weigh a budget that would extend significant tax cuts and boost spending for years