This week, Fitch Ratings downgraded the nation’s current credit rating from AAA to AA+.
The rating has a stable outlook, which means Fitch does not anticipate any more changes.
S&P downgraded the nation’s rating more than ten years ago, to an equal AA+.
For the U.S., Moody’s continues to give the highest rating.
“The United States’ rating was downgraded,” according to Fitch, “in light of the anticipated fiscal deterioration throughout the next three years, a high and rising general federal debt burden, along with the erosion of governance compared to its ‘AA’ and ‘AAA’ rated peers over the past two decades which has manifested itself in repeated debt restricted standoffs as well as last-minute resolutions.”
According to Fitch, “the U.S. economy will be pushed into a mild recession” in the fourth quarter of this year as well as the first quarter of next year due to “tighter credit circumstances, weakening investment from businesses, and slower growth in consumption.” The rating firm anticipates that the Fed will increase interest rates once again in September.
“On Fitch’s opinion, standards of governance have steadily declined over the past 20 years, notably on fiscal and debt problems, notwithstanding the bipartisan agreement in June to extend the debt ceiling until January 2025. Confidence in fiscal management appears to have been weakened by the ongoing political battles over the debt ceiling and last-minute agreements,” according to the rating agency.
Does anyone remember when Democrates were calling Trump a would be dictator or King and now we truly see who is the wannabe Dictator or King. Joe and friends are taking the countries economy down so they can take over and co trol it all.
Seems like this happens every time a Democrat is president.