There is political logic to Fitch’s downgrading of US debt
A divided Congress is in no position to tackle America’s serious fiscal problems
SOMETIMES the gods of finance deliver choreography that might make future historians chuckle. This week in America provided one such moment.
On Tuesday (Aug 1), the special counsel Jack Smith announced a blistering new indictment against former US president Donald Trump for allegedly launching “an unprecedented assault on the seat of American democracy”.
And on the very same day, the credit rating agency Fitch stripped America of its hallowed AAA tag, echoing a similar 2011 move by Standard & Poor’s. This means two out of the three big rating agencies have now downgraded treasuries — never mind that these supposedly define the “risk-free” benchmark for global finance.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Opinion & Features
Singapore offices await a new wave of tenants
Musk has made Tesla a meme stock
The dog ate Japan’s plan to phase out coal power
If inflation continues to build, the Fed won’t be able to maintain neutral stance for long
Last rides and last rites: The rise of the limousine hearse
Beyond US aid, Ukraine needs European allies to step up