White House Press Secretary Carine Jean-Pierre said on Tuesday that the credit agency’s decision to lower the US credit rating was “unrealistic.”
Fitch Ratings downgraded the US from AAA to AA+ on Tuesday, citing a history of disputes over the debt ceiling over the past two decades. In its release announcing the downgrade, Fitch also noted a rise in sovereign debt, but noted that the United States as a country maintains its AAA rating. (Related: ‘Hard Truth’: Nikki Haley Blames Republican Party’s Role in Economic Decline)
WASHINGTON DC – JULY 28: U.S. President Joe Biden gestures to visitors as he heads for Marine One on the south lawn of the White House on July 28, 2023 in Washington, DC. President Biden is in Auburn, Maine, to discuss manufacturing and the “Bidenomics” economic plan. (Photo Credit: Drew Angerer/Getty Images)
“It is unrealistic to downgrade the U.S. at a time when President Biden has delivered one of the strongest recoveries of any major economy in the world,” said Jean-Pierre. Said in a statement.
“The cuts in non-defense discretionary spending (15% of total federal spending) agreed in the Fiscal Responsibility Act only marginally improve the medium-term fiscal outlook, with cumulative savings of $1.5 trillion (3.9% of GDP). Stay “by 2033, according to the Congressional Budget Office,” Fitch said. release.
The Republican-controlled House passed the Fiscal Responsibility Act by a 314-117 vote by May 31, after tense negotiations between House Speaker Kevin McCarthy and President Joe Biden, ending U.S. debt. The scheduled default date was within a few days. The act freezes discretionary spending on non-defense budget items at the fiscal 2022 level, adds reforms to energy project permitting, and imposes new labor requirements on some benefit programs.
Some conservatives, like Republican Florida Governor Ron DeSantis, criticized the deal for failing to secure sufficient spending cuts, but won the deal, like former Trump administration official Larry Kudlow. Some people praised it as
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