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2023 United States debt-ceiling crisis: Difference between revisions
2023 United States debt-ceiling crisis (view source)
Revision as of 18:34, 25 May 2023
, 25 May 2023→2011 Debt Ceiling Episode
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=== US Rating Downgrade === | === US Rating Downgrade === | ||
On August 5, 2021 Credit rating agency Standard & Poor's downgraded the credit rating of the United States, from AAA to AA+. | |||
On August 2, President Barack Obama signed legislation designed to reduce the fiscal deficit by $2.1 trillion over 10 years. But that was well short of the $4 trillion in savings S&P had called for as a good “down payment” on fixing America’s finances. | |||
S&P ruled that the U.S. fell short: "The downgrade reflects our opinion that the ... plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics." | |||
S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. "The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed."<ref>https://money.cnn.com/2011/08/05/news/economy/downgrade_rumors/index.htm</ref> | |||
The move reflects the deterioration in the global economic standing of the United States, which has had a AAA credit rating from S&P since 1941, | |||
=== Market Consequences === | === Market Consequences === | ||