Credit Agency Downgrades U.S. Rating
The economy is complicated, but the need for prayer is clear.
From The Daily Wire. One of the “Big Three” credit agencies lowered the United States’s rating by a tick on Tuesday, eliciting swift condemnation from Biden administration officials who said they “strongly disagree” with the change.
Fitch Ratings downgraded the country’s Long-Term Foreign-Currency Issuer Default Rating from top-rated “AAA” to “AA+” in a move that could lead to higher interest rates and borrowing costs. It follows the federal government narrowly avoiding a default on its debt earlier this summer and several weeks ahead of a possible shutdown if a politically-divided Congress fails to come to an agreement on spending for the next fiscal year.
“The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions,” Fitch said in a release. …
The credit agency, which had placed the U.S. government’s “AAA” rating on a “negative” watch this past May, also cited other factors in announcing the change on Tuesday, including projections that show “tighter credit conditions, weakening business investment, and a slowdown in consumption will push the U.S. economy into a mild recession.”
Treasury Secretary Janet Yellen and the White House issued separate statements that each said they “strongly disagree” with the change. …
After Fitch announced its downgrade on Tuesday, following years of rising U.S. government budget numbers and the debt doubling since 2011 to more than $32 trillion, Republicans argued the change was an indicator of too much spending and borrowing. …
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