Republicans are to blame, according to the White House, which disputes that the United States deserved a rating downgrading.
Shortly after learning that Fitch Ratings had cut the US credit rating, press secretary Karine Jean-Pierre issued a statement. The declaration comes after a string of contentious debt impasses on Capitol Hill.
US Rating Downgraded Amid Debt Standoff
They totally reject this choice. It defies reality to downgrade the United States at a time when President Biden has provided the strongest recovery of any major economy in the world.
According to the Fitch ratings model, which dropped under President Trump and then strengthened under President Biden. The White House blamed the GOP even though it disapproved of the agency’s choice.
It is obvious that Republican politicians’ radicalism poses a persistent threat to our economy, from cheerleading default to undermining governance and democracy to attempting to extend deficit-busting tax giveaways for the affluent and businesses.
Even though an increase in the debt ceiling was approved by Congress and President Joe Biden before the deadline in July, itch announced on Tuesday evening that the United States’ AAA rating, the highest available, will be reduced to AA+ as a result of this past year’s debt limit standoff.
In September, a similar spending showdown is anticipated. Despite the bipartisan agreement in June to suspend the debt limit until January 2025, governance standards have steadily declined over the past 20 years, notably in fiscal and financial problems.
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Treasury Secretary Criticizes Debt Ceiling Decision
Janet Yellen, the secretary of the Treasury, also expressed her strong disagreement with the choice, labeling it arbitrary and founded on out-of-date information while outlining the advancements the Biden administration has achieved in promoting economic stability.
The Committee for a Responsible Federal Budget, a nonpartisan organization, was less tolerant of both sides in the debt ceiling standoff.
The downgrading we received today should serve as a wake-up call for us to organize our nation’s finances and political system.
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