2023-05-25 02:00:42
© Reuters. Dollar Bills 3/10/2023 REUTERS/Ruvic Data/Illustration
By Akriti Sharma
(Reuters) – Ratings agency Fitch on Wednesday put a negative outlook on the U.S. credit rating of “AAA”, citing growing political squabbling over the country’s debt ceiling.
President Joe Biden’s administration and Republican representatives in Congress are deadlocked over raising the $31.4 trillion federal debt ceiling, as both sides hail the other’s proposals as too much. extreme.
Fitch said the country’s credit rating could be downgraded if the US fails to raise or lift the debt limit on time.
However, Fitch added that the chances of the US not paying its debts on time are very low.
Fitch now estimates that the US government will spend more than it takes in, leading to a deficit of 6.5% of the US economy in 2023 and 6.9% in 2024.
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