Rating agency Fitch downgraded the US government's top credit rating, a move that drew an angry response from the White House and Treasury Secretary Janet Yellen. Here's why Fitch made the decision
, calling it "entirely unwarranted" because it ignored improvements in governance metrics during the Biden administration and the country's economic strength.
She said Fitch's "flawed assessment" was based on outdated data and failed to reflect improvements in U.S. governance indicators over the past two and a half years of President Joe Biden's administration. A July 2022 Fitch report revising the U.S. credit outlook to "stable" from "negative" said former President Donald Trump's failure to concede the 2020 election had "no recent parallel in other very highly rated sovereigns," while noting improved debt expectations. It showed a slight improvement in the ratings model score in 2022 during Biden's term.of irate Biden administration officials, calling the move "bizarre" and "arbitrary.
He added that the Biden administration's job was "to make sure that we have a sound, growing macro economy that's reaching American households that's at the core of Bidenomics."on Wednesday that the U.S. governance deterioration was partly reflected in the Jan. 6, 2021, insurrection at the U.S. Capitol as Trump sought to overturn the 2020 election results.
Biden's proposed 2024 budget, which includes substantial tax hikes on wealthy individuals and corporations, would also reduce deficits by $2.6 trillion over the next 10 years.
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