DIRS.INFO The most relevant business & tech news

☆ What to expect from the jobs report: Steady, but cooler growth
▼ + stars: | 2023-08-04 | by ( Alicia Wallace | ) edition.cnn.com time to read: +8 min

But markets and economists are expecting another solid jobs report Friday morning. And while economic data isn’t typically the sexiest of topics, the government’s jobs report has in recent months delivered plenty of excitement and its fair share of surprises. Last July, for example, the US economy added 568,000 jobs — more than double the 250,000 that economists had expected. Come Friday, the government’s jobs report for this July might not end up being quite so shocking. In fact, it could be relatively humdrum: A slight cooling in job growth, and unemployment holding steady.

Persons: Minneapolis CNN — Fitch, ”, Daniel Zhao, Refinitiv, Chris Rupkey, That’s, Michael Gapen, Janet Yellen, Glassdoor’s Zhao, ” Zhao, there’s, ” Andy Challenger, Challenger, ” Gus Faucher, they’re, Becky Frankiewicz, “ Organizations: Minneapolis CNN, Glassdoor, Bank of America, ” Bank of America, Business, Conference Board, Fitch, Challenger, “ Companies, Labor Department, “, PNC Financial Services Group, CNN, Labor Statistics, BLS, “ Employers, ManpowerGroup Locations: Minneapolis, United States

The fallout from Fitch’s downgrade continuesStocks appear set to open lower today, after falling yesterday in the wake of Fitch Ratings downgrading the United States’s AAA credit rating. But others have said Fitch’s move, while largely symbolic, still points to long-term troubles for the nation and its fiscal health. “There is no willingness on any side to really tackle the underlying challenges,” Mr. Francis said. But “it doesn’t really matter much,” Jamie Dimon, JPMorgan Chase’s C.E.O., told CNBC yesterday, echoing a common refrain to Fitch’s move. Critics of the move noted that according to criteria laid out last year by Fitch itself, including debt-to-G.D.P.

Persons: Richard Francis, Fitch’s, standoffs, ” Mr, Francis, ” Jamie Dimon, JPMorgan Chase’s, Fitch Organizations: Fitch, United States’s AAA, Wall, U.S, Times, JPMorgan, CNBC Locations: U.S

☆ What to expect from the July jobs report: Steady, but cooler growth
▼ + stars: | 2023-08-03 | by ( Alicia Wallace | ) edition.cnn.com time to read: +7 min

Minneapolis CNN —Despite Tuesday’s credit rating downgrade amid concerns about the challenges facing the United States, markets and economists are expecting another solid jobs report on Friday. And while economic data isn’t typically the sexiest of topics, the monthly jobs report has in recent months delivered plenty of excitement and its fair share of surprises. Come Friday, the government’s jobs report for this July might not end up being quite so shocking. In fact, it could be relatively humdrum: A slight cooling in job growth, and unemployment holding steady. The broader economic scorecard for the United States makes the downgrade all the more “bizarre” and puzzling, noted top economists, including Treasury Secretary Janet Yellen.

Persons: ”, Daniel Zhao, Refinitiv, Chris Rupkey, That’s, Michael Gapen, Janet Yellen, Glassdoor’s Zhao, ” Zhao, there’s, ” Andy Challenger, Challenger, Gus Faucher, they’re, Becky Frankiewicz, “ Organizations: Minneapolis CNN, Glassdoor, Bank of America, ” Bank of America, Fitch, Challenger, “ Companies, PNC Financial Services Group, CNN, Labor Statistics, BLS, “ Employers, ManpowerGroup Locations: Minneapolis, United States

☆ Rampant DC dysfunction made America’s credit downgrade inevitable
▼ + stars: | 2023-08-03 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said in its report. Even though the US avoided a default on its debt this year, Fitch Ratings cited a 'steady deterioration in standards of governance' in dowgrading the nation's credit. Anna Moneymaker/Getty ImagesThe message from Fitch this week, and S&P more than a decade earlier, is that the constant brinkmanship in DC is eroding trust. Historically, raising the debt ceiling was not controversial — the “full faith and credit” of the United States wasn’t something either party wanted to trifle with. That’s because the entire global financial system hinges on the promise that the United States always pays its debts.

Persons: CNN Business ’, Fitch, Biden, ’ brinkmanship, “, Donald Trump, ” Fitch, Anna Moneymaker, Barack Obama, Stocks, you’ll Organizations: CNN Business, New York CNN, America, Republican, United Locations: New York, United States, Washington, America

☆ What this week's U.S. credit rating downgrade means for your money
▼ + stars: | 2023-08-03 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

Markets hit the skids on Wednesday after Fitch Ratings downgraded its rating on U.S. debt to AA+ on Tuesday evening — one notch below the agency's highest rating of AAA. "The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management," the rating firm said in a press release. In historical context, though, this week's downgrade is less of a big deal than it seems, experts say. the rating agency dinged Uncle Sam's once perfect credit rating. "In some ways, the S&P downgrade echoes the current downgrade from Fitch," Sam Millette, fixed income strategist for the Commonwealth Financial Network, wrote in a recent note.

Persons: Fitch, Ryan Detrick, — Fitch, —, Bonds, Uncle Sam's, Jon Maier, hasn't, Sam Millette, Maier Organizations: Fitch, AAA, Nasdaq, Dow, Carson Group, Moody's, Global, Commonwealth Financial Network Locations: Washington, creditworthiness, Fitch

It’s unlikely that the move — only the second downgrade in American history — will dent investor appetite for Treasury notes. But the decision is another sign that Wall Street is worried about political chaos, including brinkmanship over the debt limit that is becoming entrenched in Washington. The move came two months after Washington narrowly avoided a U.S. default, following a prolonged argument over the debt ceiling. (That said, some on Wall Street remain skeptical that the country is headed for a so-called soft landing.) Fitch’s own model shows the U.S. economy deteriorating during the Trump administration and recovering under President Biden.

Persons: Fitch, “, Trump, Biden Organizations: Fitch, United States ’ AAA, Washington, Social Security Locations: U.S, Washington

CNN —There may not be any lasting major negative ramifications from the surprise US credit rating downgrade by Fitch this week — not for the economy, not for consumers and not for the government’s ability to borrow. Normally, when your credit score as a consumer falls — or your credit rating as a country — there are negative consequences. Here’s why the United States is unlikely to see that kind of impact from the Fitch downgrade. The downgrade wasn’t a huge dropFitch cut its US credit rating to AA+ from what had been a sterling AAA rating. “Fitch’s credit rating is an expression of the probability of a default.

Persons: You’re, Fitch, “, brinkmanship, Marc Goldwein, you’re, ”, Mark Zandi, Yellen, Jamie Dutta, Dutta, ” George Mateyo, ” Mateyo, ” José Torres, Torres, it’s, ” Torres, Uncle Sam, CRFB, – CNN’s Krystal Hur, Allison Morrow Organizations: CNN, Fitch, AAA, Committee, U.S . Treasury, Moody’s, AA, “, Vantage, Key Private Bank, Federal Reserve, Interactive Brokers, Moody’s Investors Service, Treasury, Congressional, Social Security Locations: United States, States, corporates, United

☆ Fitch's downgrade of U.S. debt unlikely to have much economic impact — for now
▼ + stars: | 2023-08-02 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

While financial markets on Wednesday took a break from their monster rally of 2023, economists largely expect the impact on the economy to be minimal. Some even questioned the timing of Fitch's action, saying it seems to come after the biggest scare to whether the U.S. would meet its debt obligations has passed. Overall, this announcement is much more likely to be dismissed than have a lasting disruptive impact on the US #economy and #markets." It also cited the battles that warring congressional factions have had over the debt ceiling as well as budget standoffs. Goldman also said it does not see a meaningful impact on holders of Treasurys or other government-sponsored or municipal debt.

Persons: Mohamed El, Erian, Fitch, Veronique de Rugy, de Rugy, that's, Goldman Sachs, Goldman, There's Organizations: Poor's, Fitch, Allianz, Twitter, AAA, Mercatus, George Mason University, Treasury, Federal Reserve, Congressional, Moody's, Service Locations: U.S

☆ Top officials, economists say Fitch's downgrade of the US economy is 'strange' and 'bizarre'
▼ + stars: | 2023-08-02 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Top economists and administration officials bashed Fitch's downgrade, calling it bizarre. Even Nobel laureate and economist Paul Krugman was baffled about "that bizarre Fitch downgrade," as he posted on X. "I am very puzzled by many aspects of this announcement, as well as by the timing," wrote El-Erian, the chief economic adviser to German financial services giant Allianz. Former Treasury Larry Summers slammed Fitch's downgrade on X, posting that the decision is "bizarre and inept" given that the American economy looks "stronger than expected." Fitch flagged the risk of a US credit rating downgrade in May citing political "brinksmanship" in negotiations over raising the debt ceiling.

Persons: Fitch, there's, bashed, Janet Yellen, Paul Krugman, Mohamed El, Erian, Treasury Larry Summers, Biden Organizations: AAA, Service, Allianz, Treasury, Dow Jones Industrial, Nasdaq Locations: Wall, Silicon

☆ Treasury Secretary Yellen says surprising Fitch downgrade is 'entirely unwarranted'
▼ + stars: | 2023-08-02 | by ( Chelsey Cox | ) www.cnbc.com time to read: +1 min

Treasury Secretary Janet Yellen testifies before the House Financial Services Committee on the state of the international financial system, in the Rayburn House Office Building on Capitol Hill in Washington, DC on June 13, 2023. WASHINGTON — Treasury Secretary Janet Yellen on Wednesday denounced Fitch's decision to downgrade the United States' longstanding credit rating that caused stocks to tumble. Yellen, who spoke during a visit with Danny Werfel, commissioner of the IRS, called the move "surprising" considering the nation's strong economic recovery from the Covid pandemic. Fitch cited "expected fiscal deterioration over the next three years," and "repeated debt-limit political standoffs" when it downgraded the nation's rating to AA+ from AAA. "I strongly disagree with Fitch's decision, and I believe it is entirely unwarranted," Yellen said.

Persons: Janet Yellen, Fitch's, Danny Werfel, Fitch, Yellen, we've Organizations: Financial, WASHINGTON —, AAA, CNBC Locations: Rayburn, Washington , DC, States

☆ Fitch tells CNN why it downgraded America now
▼ + stars: | 2023-08-02 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN Business —Fitch Ratings is defending its controversial decision to downgrade the US credit rating by pointing to the nation’s mountain of debt. “The numbers speak for themselves,” Richard Francis, the lead analyst on US sovereign ratings at Fitch, told CNN in an interview on Wednesday. Within minutes of Fitch’s downgrade on Tuesday evening, the White House, Treasury Department and some leading economists slammed the move. Whether America slips into a mild recession or narrowly avoids one “just doesn’t move the needle,” Francis told CNN. ‘The center’s fallen apart’Beyond the fiscal mess, Fitch is growing increasingly worried about the political situation in the world’s largest economy.

Persons: New York CNN Business — Fitch, ” Richard Francis, Francis, “, ” Francis, Janet Yellen, Fitch, Obama, Jason Furman, Larry Summers, ”, Donald Trump, there’s, Biden Organizations: New York CNN Business, Fitch, CNN, Treasury Department, Social Security, Office, Democrats, Republicans, Trump Locations: America

☆ Stick with Treasurys even after Fitch downgrades U.S., UBS says
▼ + stars: | 2023-08-02 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

Government bonds are still a sound investment, according to UBS. Fitch attributed the downgrade Tuesday to an "erosion of governance," referring to political standoffs around the debt limit, as well as growing debt levels. The firm expects government debt to reach 118.4% of gross domestic product by 2025. US10Y US2Y YTD line U.S. 2 year and 10 year yields Bond yields move opposite to their prices. She noted that the added benefit of having U.S. Treasurys is they offer the potential for capital appreciation if investors become concerned about slowing growth.

Persons: Fitch, Marcelli, — CNBC's Michael Bloom Organizations: UBS, ., AAA, UBS Global Wealth Management, Treasury, Federal Locations: Americas

The yield on the 10-year Treasury was down by around 1 basis points at 4.033% after hitting its highest level since early July on Tuesday. The 2-year Treasury yield was trading about 1 basis point lower at 4.9%. U.S. Treasury yields moved modestly lower Wednesday as investors considered the outlook for the economy after Fitch Ratings downgraded the U.S.' long-term foreign currency issuer default rating on Tuesday. Investors also looked ahead to key economic data that could provide clues about what is ahead for the U.S. economy and monetary policy. In recent months, Fed officials have repeatedly indicated that policy shifts ahead will depend on economic data.

Persons: Fitch, Dow Jones Organizations: Treasury, U.S, Fitch, ., AAA, Investors, Federal Locations: U.S

☆ U.S. debt downgrade sinks global markets — but economists are not concerned
▼ + stars: | 2023-08-02 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

Global stock markets tumbled on Wednesday after ratings agency Fitch downgraded the United States' long-term credit rating — but top economists say there is nothing to worry about. U.S. stock futures were sharply lower after the downgrade, pointing to a fall of almost 300 points for the Dow Jones Industrial Average at the Wednesday open on Wall Street. Current Treasury Secretary Janet Yellen described the downgrade as "outdated." Phillips said the downgrade "should have little direct impact on financial markets as it is unlikely there are major holders of Treasury securities who would be forced to sell based on the ratings change." Harvey noted that, ahead of the 2011 S&P downgrade, stocks were in correction territory, credit spreads were widening, rates were falling, and the global financial crisis "was still in the market's collective conscience" — whereas the conditions today are "almost the opposite."

Persons: Fitch, Larry Summers, Mohamed El, Erian, Summers, Janet Yellen, Goldman Sachs, Alec Phillips, Phillips, Wells, Chris Harvey, Harvey, Mark Mobius, they've, CNBC's Organizations: United, AAA, Dow Jones, U.S ., Allianz Chief, Treasury, Wells Fargo Securities Head, Equity, CNBC, ., Mobius Capital Partners Locations: United States, London, Asia, Pacific, Wells Fargo, U.S

☆ Asian markets tumble as Fitch downgrades US debt rating
▼ + stars: | 2023-08-02 | by ( Laura He | ) edition.cnn.com time to read: +2 min

Asian markets may “tread cautiously” as investors turn wary of foreign holders selling their US Treasuries, said Stephen Innes, managing partner of SPI Asset Management. Just hours before, Fitch Ratings had cut the credit rating of US debt from the top AAA level to AA+. Together they own $2 trillion, which is more than a quarter of the $7.6 trillion in US Treasury securities held by foreign countries. Nonetheless, Goldman Sachs analysts said on Wednesday that they don’t believe there are any meaningful holders of Treasury securities who will be forced to sell due to a downgrade. “Because Treasury securities are such an important asset class, most investment mandates and regulatory regimes refer to them specifically, rather than AAA-rated government debt,” the Goldman Sachs analysts said.

Persons: Fitch, “, Australia’s, Stephen Innes, Goldman Sachs, ” Organizations: Hong Kong CNN, Nikkei, . Tech, China’s, Fitch, AAA, AA, Treasury Locations: Hong Kong, China’s Shanghai, United States, China, Japan

☆ Fitch downgrades U.S. long-term rating to AA+ from AAA
▼ + stars: | 2023-08-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Fitch Ratings downgraded the United States' long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to "expected fiscal deterioration over the next three years," an erosion of governance and a growing general debt burden. U.S. stock futures opened lower after the rating agency issued its downgrade, with Dow futures sliding about 100 points. In May, the agency placed the nation's AAA rating on negative watch, blaming the debt ceiling fight. President Joe Biden signed the debt ceiling bill on June 2, just days away from the "X-date" on June 5. This isn't the first time a rating agency has downgraded the U.S. Standard & Poor's cut the nation's credit rating to AA+ from AAA in 2011 after Washington managed to avoid a default.

Persons: Biden, Fitch, Washington butted, Joe Biden, Karine Jean, Pierre said, CNBC's Christina Wilkie Organizations: Service Police, Lafayette, Fitch, United, AAA, Dow, U.S . Standard, Washington Locations: Washington , DC, United States, Washington, States

U.S. Capitol police stand outside the Capitol building as the Senate votes on debt ceiling legislation to avoid a historic default at the U.S. Capitol in Washington, U.S., June 1, 2023. Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills. With the downgrade it becomes the second major rating agency after Standard & Poor’s to strip the United States of its triple-A rating. Investors use credit ratings to assess the risk profile of companies and governments when they raise financing in the debt capital markets. Other analysts had pointed to the risk that another downgrade by a major rating agency could affect investment portfolios that hold top-rated securities.

Persons: Evelyn Hockstein, Fitch, Joe Biden, Janet Yellen, Biden, Karine Jean, Pierre, Keith Lerner, Raymond James, Ed Mills, Mohamed El, Davide Barbuscia, Jyoti Narayan, Lewis Krauskopf, Saeed Azhar, Megan Davies, Arun Koyyur, David Gregoiro, Gerry Doyle Organizations: Capitol, U.S, REUTERS, White, AAA, Standard, Democratic, Republican, Treasury, Advisory Services, ” Treasury, Fitch, AA, Queens ' College, Thomson Locations: Washington , U.S, States, United States, Atlanta, New York, Bengaluru

☆ Fitch downgrades US credit rating citing 'steady deterioration' of US governance amid frequent debt ceiling battles
▼ + stars: | 2023-08-01 | by ( Brent D. Griffiths | Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

Fitch downgraded the US's credit rating on Tuesday, citing "steady deterioration in standards of governance." The downgrade comes two months after the latest debt ceiling battle and brinkmanship. Fitch's move echoes what S&P did in 2011 when that major rating agency downgraded US credit in the wake of a different debt ceiling fight. However, Fitch's assessment comes after the lastest deal — which guarantees some debt ceiling relief through the next presidential election — was brokered. "They've repeatedly put the full faith and credit of our nation on the line, and now, they are responsible for the second downgrade in our credit rating," they wrote.

Persons: Fitch, Joe, Janet Yellen, acquiescing, Biden, —, They've Organizations: Democrats, Service, Tuesday, White, Social Security, AAA, Fitch, Republicans, GOP, Lawmakers Locations: Wall, Silicon

☆ Fitch downgrades US long-term credit rating to AA+ from AAA
▼ + stars: | 2023-08-01 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

“I strongly disagree with Fitch Ratings’ decision,” said Treasury Secretary Janet Yellen in a statement on Tuesday. The last time the US debt was downgraded by another major credit rating agency, S&P, came in 2011. Until 2011, US debt had carried a perfect credit rating since Moody’s Investors Service first assigned the United States a AAA rating in 1917. The country’s new Fitch rating puts it on par with Austria and Finland but below Switzerland and Germany. S&P has maintained its AA+ rating on the US after the 2011 downgrade while Moody’s has kept its AAA rating.

Persons: CNN — Fitch, “, Fitch, ” Fitch, Biden, ”, Janet Yellen, Karine Jean, Pierre, —, Chuck Schumer, Spokespeople, Kevin McCarthy, Moody’s, Larry Summers Organizations: CNN, AAA, Biden, Fitch, AA, Republican, Republicans, Moody’s Investors Service, Dow Jones, Nasdaq, Twitter Locations: United States, Austria, Finland, Switzerland, Germany

☆ Fitch Downgrades U.S. Credit Rating
▼ + stars: | 2023-08-01 | by ( Alan Rappeport | More About Alan Rappeport | ) www.nytimes.com time to read: +1 min

The long-term credit rating of the United States was downgraded on Tuesday by the Fitch Ratings agency, which said that the nation’s high and growing debt burden and penchant for brinkmanship over the debt limit had eroded confidence in its fiscal management. Fitch lowered the U.S. long-term rating to AA+ from its top mark of AAA. The downgrade came two months after the United States narrowly avoided the first debt default in its history. Lawmakers spent weeks negotiating over whether the United States should be allowed to keep borrowing money to pay its bills, a standoff that threatened to tip the United States into default. “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said in a statement.

Persons: Fitch, ” Fitch Organizations: Fitch, U.S, AAA Locations: United States

☆ Joe Biden tasks a new team with trying to stop a debt-ceiling standoff ever happening again
▼ + stars: | 2023-07-21 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

President Joe Biden will create a team tasked with preventing future debt-ceiling standoffs. Biden and Kevin McCarthy reached an 11th-hour deal to prevent a catastrophic default in late May. The White House said it wants to stop politicians “holding hostage the full faith and credit” of the US. The group is largely made up of Biden administration officials including Treasury Secretary Janet Yellen and Attorney General Merrick Garland, the publication reported. The government currently has a self-imposed borrowing limit, which Biden suspended until January 2025 when he signed the Fiscal Responsibility Act of 2023 back in June.

Persons: Joe Biden, Biden, Kevin McCarthy, Janet Yellen, General Merrick Garland Organizations: Service, White, Bloomberg, Progressive, Democrats Locations: Wall, Silicon, United States

☆ Morning Bid: Bruised bonds relying on disinflation
▼ + stars: | 2023-07-10 | by ( ) www.reuters.com time to read: +5 min

While that data took the edge off the red-hot private-sector jobs readout the previous day, it left a bruised bond market still wary of further Federal Reserve interest rate rises and praying disinflation may stay its hand after one more hike later this month. Although Treasury bond volatility (.MOVE) backed off six-week highs on Friday, its weekly rise was the biggest since the wild swings around the banking stress in March. Stock futures were in the red again ahead of Monday's open despite gains in Chinese and European bourses. British markets - where the UK government bond market selloff last week had been worse than in Treasuries - remained edgy. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Mike Dolan, disinflation, Janet Yellen, Joe Biden, Jeremy Hunt, Andrew Bailey, Michael Barr, Mary Daly, Loretta Mester, Raphael Bostic, Ed Osmond Organizations: Wednesday's, Treasury, NATO, HSBC, Sunday . Bank of England, Federal, San Francisco Fed, Cleveland Fed, Atlanta Fed, Bank of England, . Treasury, Graphics Reuters, Reuters, Thomson Locations: U.S, China, Vilnius, British, Treasuries, South Korea, Ukraine

☆ Why the Battle for Supremacy in Asia Begins With China’s Coast Guard
▼ + stars: | 2023-06-12 | by ( Damien Cave | ) www.nytimes.com time to read: +1 min

But they are not Chinese Navy vessels. Their hulls are painted white, with “China Coast Guard” in block letters on the sides. In just a decade, China has amassed the world’s largest coast guard fleet, and it is like no other. More militarized, more aggressive in international disputes and less concerned with the usual missions of policing smugglers or search and rescue, the Chinese force has upended 200 years of global coast guard tradition. But with coast guard standoffs quietly escalating around the region, officials and analysts increasingly worry about a rising threat: an accident or violent skirmish anywhere in the vast area that China’s Coast Guard roams, which could spark a broader conflict, even a war between major powers.

Persons: standoffs Organizations: U.S . Navy, China Coast Guard, Guard Locations: Asia, China, Beijing, Taiwan

☆ Opinion | Guess How Much This Debt Ceiling Nonsense Is Costing Us
▼ + stars: | 2023-06-05 | by ( Betsey Stevenson | ) www.nytimes.com time to read: +2 min

A stronger economic recovery began to take hold in early 2015, but it most likely would have begun earlier without the 2011 debt standoff and resulting budget cuts. The biggest cost from the debt standoff, however, was the fact that it helped establish debt standoffs as the new normal. The real losers from the 2023 debt deal are American taxpayers, who can expect a similar debt standoff, with all of its costs, in two years if we still have a divided government then. Taxpayers should want to pay as little as possible for that debt, and that requires keeping borrowing costs low. But the debt ceiling is currently only used to provide the minority political party the leverage necessary to get their priorities passed.

Persons: —, Janet Yellen Organizations: Republicans, Taxpayers Locations: United States

☆ Fitch warns it could still downgrade America’s credit rating despite debt ceiling resolution
▼ + stars: | 2023-06-02 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —Fitch Ratings is keeping the United States on watch for a potential credit rating downgrade even after Congress passed a last-minute bill to avert a disastrous default. Although the resolution to the debt ceiling fight is a “positive,” Fitch expressed deep concern about the recurring brinksmanship and worsening polarization in Washington. That reasoning is similar to the rationale behind the downgrade by S&P in 2011 – an unprecedented step that occurred after Congress agreed to raise the debt ceiling. The latest debt ceiling battle has prompted more calls for reform or even eliminating the debt ceiling. This isn’t the first time the credit ratings firm has sounded the alarm about the messy state of affairs in America.

Persons: New York CNN — Fitch, Fitch, ” Fitch, “ Fitch, Richard Francis, Francis, Joe Biden, Chris Krueger, ” Krueger, “, James McCormack, Fitch’s, ” McCormack Organizations: New, New York CNN, CNN, Fitch, AAA, House Republicans, Congressional, Cowen’s Washington Research Group, Security, Medicaid, Fed, Treasury Locations: New York, United States, Washington, America

Search resuls for: "standoffs"

25 mentions found