{"id":590863,"date":"2021-07-14T12:20:58","date_gmt":"2021-07-14T16:20:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=590863"},"modified":"2021-07-14T12:20:59","modified_gmt":"2021-07-14T16:20:59","slug":"pointing-to-national-debt-ratings-agency-issues-negative-outlook-for-us-aaa-creditworthiness","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pointing-to-national-debt-ratings-agency-issues-negative-outlook-for-us-aaa-creditworthiness\/","title":{"rendered":"Pointing To National Debt, Ratings Agency Issues \u2018Negative Outlook\u2019 For US \u2018AAA\u2019 Creditworthiness"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/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%2Fpointing-to-national-debt-ratings-agency-issues-negative-outlook-for-us-aaa-creditworthiness%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=590863&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--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1233606065.jpg?w=1200&amp;h=800&amp;ixlib=react-9.0.3\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>Fitch Ratings issued a \u201cNegative Outlook\u201d on the United States\u2019 creditworthiness.<\/span><\/p>\n<p><span>The firm \u2014 which is one of the \u201cBig Three\u201d credit rating agencies in the United States alongside Moody\u2019s and Standard &amp; Poor\u2019s \u2014 maintains the country\u2019s \u201cAAA\u201d rating, but points to the rising national debt as an area of concern.<\/span><\/p>\n<p><span>According to Fitch, a \u201c<\/span><a href=\"https:\/\/www.fitchratings.com\/research\/sovereigns\/fitch-affirms-united-states-at-aaa-outlook-negative-13-07-2021\"><span>AAA<\/span><\/a><span>\u201d rating denotes \u201cthe lowest expectation of default risk\u201d granted \u201conly in cases of exceptionally strong capacity for payment of financial commitments.\u201d A downgrade would cast doubt on the United States federal government\u2019s ability to meet debt obligations.<\/span><\/p>\n<p><span>As Fitch\u2019s Tuesday <\/span><a href=\"https:\/\/www.fitchratings.com\/research\/sovereigns\/fitch-affirms-united-states-at-aaa-outlook-negative-13-07-2021\"><span>report<\/span><\/a><span> details:<\/span><\/p>\n<blockquote readability=\"11\">\n<p><i><span>The Negative Outlook on the rating reflects ongoing risks to the public finances and debt trajectory, notwithstanding the improvement in Fitch\u2019s fiscal and debt projections since its last review. Debt dynamics currently point to a broad stabilization in the debt ratio at a level where a further meaningful increase could lead to a downgrade. However, key variables including real interest rates and fiscal deficits may not follow the expected path, potentially creating downside risk.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span>The report also implicates controversy over the 2020 election and the proposal of new voter identification laws:<\/span><\/p>\n<blockquote readability=\"11\">\n<p><i><span>Governance is a weakness relative to the \u2018AAA\u2019 median, and the future direction of the rating is sensitive to the direction it takes. The failure of the former president to concede the election and the events surrounding the certification of the results of the presidential election in Congress in January, have no recent parallels in other very highly rated sovereigns. The redrafting of election laws in some states could weaken the political system, increasing divergence between votes cast and party representation. These developments underline an ongoing risk of lack of bipartisanship and difficulty in formulating policy and passing laws in Congress.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span>Despite a stronger-than-expected economic recovery following COVID-19 and the lockdown-induced recession, Fitch notes that massive government deficits driven by relief packages are a leading cause of fiscal instability.&nbsp;<\/span><\/p>\n<p><span>Indeed, large budget deficits over the past two years were <\/span><a href=\"https:\/\/www.dailywire.com\/news\/comparing-trump-and-bidens-covid-relief-bills\"><span>driven<\/span><\/a><span> by government stimulus bills \u2014 including President Trump\u2019s $2.3 trillion CARES Act and President Biden\u2019s $1.9 trillion American Rescue Plan. Currently, the federal deficit is positioned to equal 14% of economic output in 2021.<\/span><\/p>\n<p><span>Congressional Democrats are seeking to pass a $3.5 trillion spending bill via budget reconciliation \u2014 a strategy that overcomes challenges posed by an evenly split Senate.<\/span><\/p>\n<p><span>As <\/span><a href=\"https:\/\/www.dailywire.com\/news\/breaking-democrats-to-ram-3-5t-biden-agenda-through-senate-without-bipartisan-support-as-inflation-skyrockets\"><span>Politico<\/span><\/a><span> reported:<\/span><\/p>\n<blockquote readability=\"11\">\n<p><i><span>The proposal sets an overall limit of $3.5 trillion for the spate of Democratic policy ambitions that won\u2019t make it into a bipartisan infrastructure deal, if Congress can reach one. If the still-forthcoming budget resolution can clear both chambers with lockstep party support, it will unleash the power to circumvent a GOP filibuster using the so-called reconciliation process, the same move that Democrats used to pass the president\u2019s $1.9 trillion pandemic aid package in March.<\/span><\/i><\/p>\n<\/blockquote>\n<p><span>The $1 trillion bipartisan infrastructure deal is intended as a compromise on President Biden\u2019s $2.7 trillion <\/span><a href=\"https:\/\/www.dailywire.com\/news\/nonpartisan-economists-say-bidens-infrastructure-plan-will-decrease-economic-growth\"><span>American Jobs Plan<\/span><\/a><span>.<\/span><\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <\/span><\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fitch Ratings issued a \u201cNegative Outlook\u201d on the United States\u2019 creditworthiness.The firm \u2014 which is one of the \u201cBig Three\u201d credit rating agencies in the United States alongside Moody\u2019s and &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2314664,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1233606065.jpg?w=1200&h=800&ixlib=react-9.0.3","fifu_image_alt":"Pointing To National Debt, Ratings Agency Issues \u2018Negative Outlook\u2019 For US \u2018AAA\u2019 Creditworthiness","footnotes":""},"categories":[],"tags":[],"class_list":["post-590863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1233606065.jpg?w=1200&h=800&ixlib=react-9.0.3","fifu_image_alt":"Pointing To National Debt, Ratings Agency Issues \u2018Negative Outlook\u2019 For US \u2018AAA\u2019 Creditworthiness","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/590863","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=590863"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/590863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2314664"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=590863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=590863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=590863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}