{"id":64,"date":"2023-08-02T22:51:08","date_gmt":"2023-08-02T22:51:08","guid":{"rendered":"http:\/\/whatistandfor.co\/LeFachicette\/?p=64"},"modified":"2023-08-02T22:51:08","modified_gmt":"2023-08-02T22:51:08","slug":"ratings-agency-fitchs-shocking-downgrade-of-the-us-top-tier-sovereign-credit","status":"publish","type":"post","link":"http:\/\/whatistandfor.co\/LeFachicette\/ratings-agency-fitchs-shocking-downgrade-of-the-us-top-tier-sovereign-credit\/","title":{"rendered":"Ratings agency Fitch\u2019s shocking downgrade of the US\u2019 top-tier sovereign credit."},"content":{"rendered":"\n<p>Wall Street tumbled on Wednesday&nbsp;after ratings agency Fitch\u2019s shocking downgrade of the US\u2019 top-tier sovereign credit.<\/p>\n\n\n\n<p>The Dow plunged 348.16 points, or 1%, to 35,282.52. The tech-heavy Nasdaq had its worst day since February, dropping 310 points, or 2.2%. The S&amp;P 500 slid 1.4%, its biggest decline since April.<\/p>\n\n\n\n<p><a href=\"https:\/\/nypost.com\/2023\/08\/01\/fitch-cuts-us-credit-rating-citing-expected-fiscal-deterioration\/\">Fitch cut the US from AAA to AA+ after the market closed Tuesday<\/a>, citing the nation\u2019s ballooning debt load and political dysfunction in Washington.&nbsp;<\/p>\n\n\n\n<p>The downgrade \u201cbasically tells you the US government\u2019s spending is a problem. It\u2019s an unsustainable budget situation because the economy can\u2019t even grow its way out of this problem going forward,\u201d said Steven Ricchiuto, US chief economist at Mizuho Securities.<\/p>\n\n\n\n<p>\u201cTherefore, they\u2019re going to have to either tackle it or accept the consequences of potential further additional downgrades.\u201d<\/p>\n\n\n\n<p>Tony Sycamore, an analyst with IG, said that apart from the\u00a0Fitch\u00a0move, there had been some disappointing data in the US and China, and some weaker-than-expected earnings, so people were taking money off the table<\/p>\n\n\n\n<p>JPMorgan&nbsp;CEO Jamie&nbsp;Dimon&nbsp;said the US should get rid of the debt ceiling, in a CNBC interview on Wednesday.<\/p>\n\n\n\n<p>But Dimon&nbsp;said the downgrade \u201cdoesn\u2019t really matter that much\u201d as the markets decide it and not the rating agencies.<\/p>\n\n\n\n<p>Fitch\u2019s downgrade came two months after President Biden and the Republican-controlled House reached a&nbsp;debt ceiling agreement after months of political brinkmanship.&nbsp;<\/p>\n\n\n\n<p><strong>The deal\u00a0lifted the government\u2019s $31.4 trillion debt ceiling.<\/strong><\/p>\n\n\n\n<p>\u201cIn&nbsp;Fitch\u2019s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,\u201d the rating agency said in a statement.<\/p>\n\n\n\n<p>The move, which came after Fitch had placed the ratings on negative watch in May, drew an angry response from the White House, calling it \u201carbitrary and based on outdated data\u201d as it came two months after a debt ceiling agreement that averted a US default.<\/p>\n\n\n\n<p>\u201cFitch\u2019s decision does not change what Americans, investors and people all around the world already know: that Treasury securities remain the world\u2019s preeminent safe and liquid asset, and that the American economy is fundamentally strong,\u201d Treasury Secretary Janet Yellen said<\/p>\n\n\n\n<p><a href=\"https:\/\/nypost.com\/2023\/08\/02\/dgears-up-for-rough-ride-following-fitchs-downgrade-of-us-aaa-credit-rating\/\" target=\"_blank\" rel=\"noreferrer noopener\">Link<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street tumbled on Wednesday&nbsp;after ratings agency Fitch&rsquo;s shocking downgrade of the US&rsquo; top-tier sovereign credit. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-64","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/posts\/64","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/comments?post=64"}],"version-history":[{"count":1,"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/posts\/64\/revisions"}],"predecessor-version":[{"id":65,"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/posts\/64\/revisions\/65"}],"wp:attachment":[{"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/media?parent=64"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/categories?post=64"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/whatistandfor.co\/LeFachicette\/wp-json\/wp\/v2\/tags?post=64"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}