Janet Yellen doubles down on criticism of Fitch’s US credit downgrade
The Big Money Show co-host Brian Brenberg speaks with voters in Fox Square about Americans credit rating downgrade.
Treasury Secretary Janet Yellen doubled down on her criticism of Fitch’s downgrade of the U.S. government’s long-term credit rating in remarks on Wednesday.
Fitch Ratings announced the downgrade on Tuesday, which dropped the U.S. credit rating by one notch from its highest rating ‘AAA’ to ‘AA+’ citing an «erosion of governance» that has manifested itself in repeated debt limit standoffs. Fitch also sees federal deficits widening and exacerbating an already large national debt, looming fiscal challenges posed by rising spending on Social Security and Medicare, in addition to a mild recession projected in late 2023 and early 2024.
Yellen pushed back on the downgrade, arguing that the U.S. economy «continues to grow» and added, «In the longer term, the United States remains the world’s largest, most dynamic, and most innovative economy – with the strongest financial system in the world.»
«Fitch’s decision is puzzling in light of the economic strength we see in the United States. I strongly disagree with Fitch’s decision, and I believe it is entirely unwarranted,» Yellen said. «Its flawed assessment is based on outdated data and fails to reflect improvements across a range of indicators, including those related to governance, that we’ve seen over the past two and a half years.»
FITCH DOWNGRADES US’ LONG-TERM RATINGS FROM ‘AAA’ TO ‘AA+’
U.S. Treasury Secretary Janet Yellen doubled down on her criticism of Fitch's downgrade of the federal government's credit rating. (Drew Angerer/Getty Images / Getty Images)
«Despite the gridlock, we have seen both parties come together to pass legislation to resolve the debt
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