2023-08-05 08:38:00
Fitch downgrades U.S. credit rating U.S. senior investors and former officials: Fitch’s decision is reasonable
The international rating agency Fitch downgraded the long-term foreign currency issuer default rating of the United States from AAA to AA+ on August 1. This is the second time in the history of the United States that the credit rating has been downgraded. In this regard, Schwarzman, CEO of Blackstone Group, one of the world’s largest asset management companies, and the former director of the U.S. Congressional Budget Office both said that whether it is from the data or from the perspective that the U.S. government has failed to effectively deal with the debt problem for a long time, Fitch’s decision to downgrade the US credit rating is reasonable and correct.
Schwarzman, CEO of Blackstone Group: The data proves that Fitch’s rating decision is reasonable. Since the international financial crisis, US debt has exploded, and we seem to lack fiscal discipline, resulting in a large deficit now.
Fitch Sovereign Rating Senior Director Richard Francis recently emphasized that Fitch has good reasons to downgrade the US rating, and the US debt situation is deteriorating – the US government’s debt accounts for 113% of GDP, and this ratio has been is constantly going up. In addition, US political polarization, intensified partisanship, and repeated political gridlock around the debt ceiling in the US are the main reasons why Fitch downgraded its rating from AAA to AA+. Douglas Holtz-Eakin, former director of the Congressional Budget Office, agrees.
Douglas Holtz-Eakin, Chairman of the American Action Forum and former Director of the Congressional Budget Office: The important thing is that the US government does not have any plans for the country’s fiscal future. Essentially, America has a very big problem, it’s not new, it’s been there for a long time, and we’ve been turning our backs on it. I think this is the key reason why Fitch downgraded the US credit rating. Today, lawmakers are still arguing over the federal budget over the most irrelevant things.
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