{"id":1937616,"date":"2023-05-25T05:41:06","date_gmt":"2023-05-25T09:41:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fitch-warns-continued-partisanship-on-debt-ceiling-will-hurt-aaa-credit-rating\/"},"modified":"2023-05-25T05:45:50","modified_gmt":"2023-05-25T09:45:50","slug":"fitch-warns-continued-partisanship-on-debt-ceiling-will-hurt-aaa-credit-rating","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fitch-warns-continued-partisanship-on-debt-ceiling-will-hurt-aaa-credit-rating\/","title":{"rendered":"Fitch cautions that ongoing political division over debt ceiling could damage AAA credit rating."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffitch-warns-continued-partisanship-on-debt-ceiling-will-hurt-aaa-credit-rating%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1937616&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>US Credit Rating at Risk as Political Deadlock Continues<\/h2>\n<div class=\"post_content\">\n<div class=\"aplayer_app\" data-source=\"https:\/\/vs1.youmaker.com\/assets\/2023\/0525\/1ac28809-40d6-43e8-bc86-7a2f2fbcb4d0\/audio.mp3?length=2526093&#038;duration=210\"><\/div>\n<p>Fitch Ratings has placed the United States\u2019 AAA <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pointing-to-national-debt-ratings-agency-issues-negative-outlook-for-us-aaa-creditworthiness\/\" title=\"Pointing To National Debt, Ratings Agency Issues \u2018Negative Outlook\u2019 For US \u2018AAA\u2019 Creditworthiness\">credit rating<\/a> on \u201crating watch negative\u201d due to the ongoing political deadlock over the debt ceiling. This news has caused concern about a possible downgrade, as negotiations between House Republicans and The White House stretch into a third week. Fitch expressed concern about brinkmanship in the debt ceiling talks caused by increasingly entrenched partisanship in policymaking.<\/p>\n<p>Time is running out to strike a deal to address an impending default, as the U.S. Treasury Department could exhaust its cash to pay bills as early as next week from June 1. The United States defaulting on its debts could have disastrous economic effects at home and abroad.<\/p>\n<p>Fitch, one of the three big credit rating agencies along with Moody\u2019s and Standard &#038; Poor\u2019s, explained the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fitch-warns-continued-partisanship-on-debt-ceiling-will-hurt-aaa-credit-rating\/\" title=\"Fitch cautions that ongoing political division over debt ceiling could damage AAA credit rating.\">negative rating watch \u201creflects increased political partisanship<\/a> that is hindering reaching a resolution to raise or suspend the debt limit despite the fast-approaching x date.\u201d<\/p>\n<p>The agency said it still expects a resolution to the impasse before Treasury\u2019s cash position and capacity for extraordinary measures are exhausted but believes there\u2019s now a higher risk the debt limit will not be raised in time, which would see U.S. government start to miss some of its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tax-deadlines-moved-to-october-for-most-californians-due-to-storms\/\" title=\"Tax Deadlines Moved to October for Most Californians Due to Storms\">payment due dates<\/a>.<\/p>\n<p>Fitch also highlighted concerns over the political brinkmanship surrounding the debt ceiling, as well as the failure of U.S. authorities to effectively address medium-term fiscal challenges that could lead to rising budget deficits and a mounting debt burden. These factors indicate potential downside risks to the creditworthiness of the United States, it said.<\/p>\n<h3>Partisanship<\/h3>\n<p>A Treasury Department spokesperson responded Fitch\u2019s warning on Wednesday night, saying it demonstrated why Congress must immediately resolve the debt limit impasse. \u201cAs Secretary Yellen has warned for months, brinkmanship over the debt limit does serious harm to businesses and American families, raises <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-us-will-be-out-of-money-in-october-if-congress-doesnt-raise-debt-ceiling\/\" title=\"Yellen: US Will Be Out Of Money In October If Congress Doesn\u2019t Raise Debt Ceiling\">short-term borrowing costs<\/a> for taxpayers, and threatens the credit rating of the United States,\u201d Treasury spokesperson Lily Adams said in a statement.<\/p>\n<p>During a Wall Street Journal event in London, Treasury Secretary Janet Yellen, who spoke virtually, said that\u00a0\u201cit seems almost certain\u201d the United States would default in early June. Yellen noted that the stress is already apparent in Treasury markets.<\/p>\n<h3>What&#8217;s at Stake?<\/h3>\n<ul>\n<li>Disastrous economic effects at home and abroad<\/li>\n<li>Missed payment due dates<\/li>\n<li>Rising budget deficits and a mounting debt burden<\/li>\n<li>Short-term borrowing costs for taxpayers<\/li>\n<li>Threatens the credit rating of the United States<\/li>\n<\/ul>\n<p>The White House press secretary\u00a0Karine Jean-Pierre on Wednesday emphasized the need for swift bipartisan action by Congress to raise or suspend the debt limit and avoid a manufactured crisis for our economy.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fitch Ratings put the US AAA credit rating on &#8220;rating watch negative&#8221; due to the political deadlock over the debt ceiling. The ongoing negotiations between House Republicans and The White House have raised concerns about a possible downgrade. Fitch is worried about the brinkmanship in the debt ceiling talks.<\/p>\n","protected":false},"author":618,"featured_media":1937617,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[14884,17517,10142,6178,9471,5487,3931,27574,4085,3753,8809],"class_list":["post-1937616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-aaa","tag-cautions","tag-ceiling","tag-credit","tag-damage","tag-debt","tag-division","tag-fitch","tag-ongoing","tag-political","tag-rating"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1937616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/618"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1937616"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1937616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1937617"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1937616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1937616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1937616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}