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Fitch US debt downgrade greeted with Washington outrage and market calm

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Fitch’s US debt downgrade greeted with Washington outrage and market calm

The White House appeared to fear that the downgrade gave Republicans a new opening to accuse Biden officials of mishandling America’s public finances. Democrats had hoped that the budget deal struck with Republican speaker Kevin McCarthy to avoid a debt default in June had put those criticisms to rest.

Fitch raised a red flag over “a steady deterioration in standards of governance over the last 20 years” even with the latest deal to suspend the debt limit until January 2025.

 

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