On Tuesday, the US agency Fitch downgraded the credit reliability rating of the United States from the highest level of AAA to AA+. According to Reuters, she justified this by the expected deterioration of the fiscal situation in the next three years, as well as the high and ever-growing debt of the US government. The White House strongly disagreed with the downgrade.
Deteriorating standards
In the justification, the agency said, among other things, that in the US in the last 20 years there has been a gradual “deterioration of the standards of public administration, including fiscal and debt matters”, regardless of the June agreement between Democrats and Republicans regarding the debt ceiling.
Already in May, Fitch placed the rating of the long-term foreign exchange obligations of the USA on observation mode with the possibility of its reduction, which it justified at the time precisely because of the dispute over the increase in the debt ceiling and the threat of insolvency of the federal government.
Disagreement
The White House says the downgrade contradicts reality because President Joe Biden has managed to achieve the strongest economic recovery of any major global economy. In the second quarter, the US economy accelerated to 2.4 percent growth from a 2 percent pace in the first quarter.
US Treasury Secretary Janet Yellen also said she disagreed with the downgrade, calling it “arbitrary and based on outdated data.”
For the first time, one of the major rating agencies downgraded the US rating in 2011. Due to the long conjecture regarding the increase of the debt ceiling, Standard & Poor’s withdrew the highest AAA rating from the United States and has rated it AA+ since then
source: ČTK
