The decision roiled markets on Wednesday, with the Dow falling almost 1% and the tech-heavy Nasdaq shedding about 2% of its value. Treasury prices also fell on the downgrade, which Fitch attributed to the nation's swelling debt, serious fiscal challenges and what it described as a"steady deterioration in standards of governance" in the U.S.
"The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management," Fitch said., when the U.S. risked defaulting as Democrats and Republicans battled over how much the federal government can borrow to pay its debts. Within days of a potentially catastrophic default, GOP lawmakers and President Joe Biden struck a deal to avert a crisis.
When S&P cut the U.S. credit rating in 2011, the S&P 500 dropped about 15% with in a month, it noted. Investors may be more focused on Friday's jobs report, which will inform the Federal Reserve's decision on whether or not to boost interest rates at its September meeting, the group added. "While not necessarily wrong in its assessment, the rating downgrade will likely not have an impact on U.S. government debt or markets broadly," Gillum of LPL said.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Sumber: CNN - 🏆 4. / 95 Baca lebih lajut »