Fitch downgrades US credit rating from AAA to AA+ due to governance erosion and rising deficits, surprising global markets.
Fitch downgrades US credit rating from AAA to AA+ due to governance erosion and rising deficits.
Biden Administration calls the downgrade arbitrary, citing economic improvements under their leadership.
Global markets react: Asian equities drop, investors pull out of stocks, while US bonds might experience a flight to safety.
Context provided: US credit rating was previously downgraded by S&P in 2011 during Eurozone debt crisis.
Long-term impact questioned: History shows US investments remained strong despite previous credit downgrades.
Fitch's outlook highlights challenges: Higher interest rates, rising debt, aging population, and healthcare costs for the US economy.
Fiscal challenges extend globally: Aging populations and healthcare costs pose challenges for developed economies.
Fitch's downgrade of the US credit rating has triggered a global response, affecting markets and prompting discussions about the country's economic trajectory.