Remember thatjust like most americans who have credit records when they want to borrow money and find out how much debt they can take on, the Us Government also gets a credit rating. When it gets downgraded like this, the potential long term effect as it could push up the cost for the Us Government of borrowing money, and in turn that might long run push up taxes, it could mean less spending by the government and could mean fewer government and could mean fewer government programmes in the future. We are not there yet, but that is the underlying fear. If you look at what they are trying to address here in this downgrade, or one of the concerns they cite, it is a problem that exists both in the past but also in the future, and that is rising Us Government debt. At the moment Us Government debt stands at in excess of 30 trillion and it is expected to exceed the total size of the us economy at some point. With that in mind, with this problem in sight, and with the political disunity we ha
we start with a downgrade for the us. the ratings agency fitch has lowered its top rating in an unexpected blow to the world s biggest economy. fitch cut the us debt rating from triple a to double a plus, citing concerns over the state of the country s finances and its stewardship of the economy over the last 20 years. the move comes two months after a last minute deal was reached to lift the debt ceiling and avert the country s first ever debt default. the us treasury secretary janet yellen called the downgrade arbitrary and said economic conditions had improved under the biden administration. michelle fleury is in new york for us. the treasury secretary calls it our victory, but as we said there, this spans a period of 20 years or so. fix, spans a period of 20 years or so. significant is this? i think if you
also from him personally as well. around the world and across the uk, this is bbc news. fitch cut its credit rating for the us government one notch from aaa, the highest possible rating, to aa+, citing america s erosion of governance and rising deficits. here s michelle fleury. for americans who have credit reports to determine if they can borrow money and how much debt they can take on, the us government has its own credit report. and itjust got downgraded for the first time since 2011. fitch lowered its rating from aaa to aa plus. now, back in may, fitch, one of the three major ratings agencies, put the us government on notice, blaming the standoff over the debt ceiling. the debt ceiling was ultimately lifted in a last minute bipartisan deal averting america s first ever default, but the feud was cited by fitch