Global ratings agency Fitch raised the outlook for the United States from “negative” to “stable” due to improving near-term government debt dynamics.
That momentum is being spurred by a stronger-than-expected post-pandemic economic recovery, according to the agency, which says it expects government revenue to rise this year, helped by strong personal income taxes and companies.
Fitch maintained its sovereign rating at “AAA” due to structural forces such as the size of the economy, high per capita income and a dynamic business environment.
Last month, Moody’s also affirmed its highest sovereign rating of “Aaa” for the country. The rating agency said it expected the economy to remain resilient in the face of current challenges of high inflation and war in Ukraine.
The US economy is struggling with soaring inflation and rising food and energy prices that the Federal Reserve has resorted to aggressive monetary policy tightening to fight inflation.
Last month, the U.S. central bank raised its key rate by three-quarters of a percentage point, its biggest hike since 1994.