Tax cuts and new spending initiatives coupled with multiple economic shocks have swelled budget deficits, Fitch said via IrishTimesBiz
Wed Aug 2 2023 - 06:43
The credit grader cut the US down one level from AAA to AA+, echoing a move made more than a decade ago by S&P Global Ratings. , while medium-term challenges related to rising entitlement costs remain largely unaddressed. US Treasury secretary Janet Yellen quickly responded to the downgrade, calling it “arbitrary” and “outdated.” US government bonds edged higher in early Asia trading after the Fitch announcement amid modest demand for haven assets.
While that crisis was ultimately averted, Fitch nonetheless said that the repeated debt-limit clashes and eleventh-hour resolutions have eroded confidence in the nation’s fiscal management.