Inflation was transitory. Now, the credit rating of the United States plummeting from AAA to AA+ by Fitch is “arbitrary,” according to Treasury Secretary Janet Yellen. “In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,” the rating agency said in a statement. The last time an AA+ rating was issued was August 5, 2011, and the market took a hit.
In 2011, Standard & Poor cut its rating also after a debt ceiling crisis caused by politicians. The global markets felt the impact of that news. Fitch has been warning of a possible downgrade since May 2023, due to the massive debt burden and political mismanagement. The White House continued its spending spree and our politicians could not agree on a limit for the debt ceiling. The warnings were there.
It is concerning that Yellen is trying to stifle this news. “I strongly disagree with Fitch’s decision. The change announced today is arbitrary and based on outdated data,” Yellen insisted. Again, this is the same woman who insisted, along with Powell, that inflation was transitory and nothing to be concerned about. Yellen believes some of Fitch’s models do not accurately indicate the state of the US. Yell said “governance,” under Joe Biden, has improved due to mass infrastructure packages and investments in America that will make the country more competitive.
Yellen and others refuse to admit that the United States has deteriorated under the Biden Administration. “Governance” is one of the nation’s weakest points right now, but that would put blame on the current administration. The right and left are more polarized than ever and cannot agree on anything. The US government is heavily investing in one foreign government to fuel the proxy war while lining the pockets of “the big guy.” This administration has ruined America and there is no sugar coating what’s to come.