Former Treasury secretaries react to US credit downgrade | CNN Business

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The US economy is resilient, but policymakers need to take the long view on the country’s fiscal challenges, three former Treasury secretaries told CNN’s Fareed Zakaria.

The US economy is resilient, but policymakers need to take the long view on the country’s fiscal challenges, three former Treasury secretaries told CNN’s Fareed Zakaria on Sunday. Last week, Fitch Ratings, one of the world’s top credit rating’s agencies, downgraded the US government’s credit rating from a stellar AAA to an AA+ due in part to “the erosion of governance … over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.

“Ultimately, a judgment about the capacity of a country’s political system,” said Geithner, who served as Treasury Secretary during the Great Recession and when Standard & Poor’s downgraded the nation’s credit in 2011 from AAA to an AA+, the only other downgrading in US history. “The world looks at our political system today and they wonder: ‘Is America going to be able to find the will to come together and do this in a sensible way?’” he added.

 

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