A senior Biden administration official statement:
- Fitch decision to downgrade the US ignores resilience and underlying strength of the US economy
- We think this is a 'bizarre and baseless' decision for Fitch to make
- Would be quite surprised to see a major increase in borrowing costs from Fitch downgrade announcement
Its no surprise that the US admin is disparaging the announcement from Fitch. Fitch makes good points in their downgrades, and its not as if this has come out of thin air, they issued a warning back in May:
- Fitch is out with something of an ominous warning on the US credit rating
- United States' 'AAA' rating watch negative reflects increased political partisanship that is hindering resolution to raise or suspend debt limit
Still, political operators will always do politics so nothing surprising here.
Earlier, ICYMI:
- Fitch downgrades USA long-term credit rating to AA+ from AAA
- Here is what happened in markets the last time the US was downgraded: Stocks, FX and gold
- Fitch placed USA on negative watch back in May, now has cut the US rating from triple A
- EUR/USD spiking higher, USD/JPY lower after US rating downgrade
- US equity futures have dropped, hard, upon reopening after the downgrade
