Ratings agency Fitch said on Wednesday that it has placed the U.S. sovereign rating at ‘AAA’ on its ‘negative credit ratings’ list due to growing political wrangling over country’s debt limit.
Government of the President Joe Biden and Republicans in Congress deadlocked on the issue of raising federal debt ceiling$31.4 trillion, with both sides condemning each other’s proposals as too extreme.
Fitch notes that the country’s rating may fall unless the United States raises or suspends its debt limit as scheduled.
However, he added that the chances that the United States will not pay its debts on time are very low.
Fitch now predicts that US government it will spend more than it receives, creating a deficit of 6.5% of the country’s total economy in 2023 and 6.9% in 2024.
Reuters
Source: Aristegui Noticias

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.