Treasury Secretary Yellen objects to reduction even as the nation may borrow $2 trillion by yearend.
Fitch Ratings, Inc. downgraded its rating of the stability of the federal government’s credit this week, relabeling its assessment from AAA to AA+.
As its reasoning, the rating agency cited “the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the decision of government relative to AA and AAA rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”
Fitch Ratings is one of nine credit rating organizations approved by the Securities and Exchange Commission to provide credible information about America’s economy alongside the federal government. It is also one of the three largest credit rating organizations in the country.
Secretary of the Treasury Janet Yellen called the decision “unwarranted.“ She said, “Fitch’s decision is puzzling in light of the economic strength we see in the United States. Today, the unemployment rate is near historic lows, inflation has come down significantly since last summer, and last week’s GDP report shows that the U.S. economy continues to grow.“
As the Lord Leads, Pray with Us…
- For Treasury Secretary Yellen as she oversees the payment of the nation’s debt obligations.
- For Chairman Gary Gensler as he heads the Securities and Exchange Commission.
- For members of Congress to seek God’s direction as they negotiate appropriations for the coming fiscal year.
Sources: Reuters, CNN Business, Hearst, Wolf Street, The Blaze
