Fitch downgraded the US credit rating
[ad_1]
The Fitch rating agency downgraded the US government’s credit rating from AAA to AA+ on Tuesday, citing the expected worsening of the country’s fiscal situation over the next three years and the very high and increasing debt of the federal government as reasons. The White House described the move as “strange and baseless.”
After the announcement of this decision, the dollar exchange rate in the global markets fell slightly.
According to Fitch, over the past 20 years the standards of the federal government have steadily declined, including those related to fiscal and debt matters. The agency also included the achievements in June this year in this category. agreement of Democrats and Republicans to suspend the debt limit until January 2025.
Reuters notes that Fitch announced its decision two months after the two parties agreed on a debt ceiling of $31.4 trillion after months of wrangling.
Treasury Secretary Janet Jellen described Fitch’s rating downgrade as “arbitrary and based on outdated data”.
An anonymous White House official, quoted by Reuters, said Fitch’s decision was “strange and baseless.” He added that it ignored the good state of the economy and the agreement reached on the debt ceiling. (PAP)
iu/
[ad_2]
Source link
