Reply To: Traders Market Weekly: Reasoning Inflation and Market Authenticity

#63319
Truman
Participant

A Fitch director spoke with Reuters and offered some more colour on the downgrade decision:

Fitch held meetings with the US Treasury ahead of the decision warned about decision, not about downgrade
Key areas behind decision were deterioration on fiscal and debt side, along with governance
Governance deterioration gives less confidence in govt’s ability to address fiscal and debt issues
Debt ceiling debate happens every 2 years or so, may happen again in 2025