Fitch places US on rating watch negative on debt ceiling fight
Ratings agency Fitch on Wednesday put the United States on watch for a possible downgrade over a risk of default amid a government impasse on raising the national borrowing limit.
Fitch said the AAA rating "reflects increased political partisanship that is hindering reaching a resolution to raise or suspend the debt limit" ahead of a looming deadline.
The US Treasury Department has said June 1 is the "X-date" when the government will run out of money, triggering a default with likely devastating economic consequences.
"Fitch still expects a resolution to the debt limit before the X-date," Fitch said in a statement. "However, we believe risks have risen that the debt limit will not be raised or suspended before the X-date and consequently that the government could begin to miss payments on some of its obligations."
President Joe Biden has been involved in months of tense talks with the Republican opposition in Congress, who have said they will agree to raise the borrowing limit only in exchange for significant spending cuts.
Republicans, increasingly dominated by a hard right faction loyal to ex-president Donald Trump, have decided to use this generally mundane procedure as leverage to force Biden to trim health care and other social programs.
The Biden administration said Wednesday that it still sees a path to a deal, though there were no concrete signs that the two sides were moving towards an agreement.
(Source: AFP)
US sanctions failed to crimp Iran’s oil supply: Chevron CEO
Trump threatens 100% tariff on BRICS nations if they undermine US dollar
Wall St falls as Russia-Ukraine tensions raise concerns
Dec. 22: ‘Axis of Resistance’ operations against Israeli occupation
‘Abhorrent’: Oxfam says only 12 trucks delivered aid in North Gaza since Oct.
VIDEO | Leader receives religious eulogists on Hazrat Fatima birth anniv.
Pope Francis slams Israel’s ‘machine-gunning’ of Gaza children
US hostage-taking of Iranian nationals violation of intl. law: Deputy FM
VIDEO | Carol Singers for Palestine on London’s Parliament Square
Ansarullah says ‘Israeli terrorists’ incapable of confronting Yemen, warns of secret weapons
VIDEO | Yemenis praise the military for its successful operations against Israel
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
