Last Update: May 25, 2023, 05:32 AM IST
The logo of Fitch Ratings is seen at their offices in the Canary Wharf financial district on March 3, 2016 in London, Britain. (Reuters/File photo)
Fitch said the AAA rating “reflects heightened political partisanship that is hindering reaching a resolution to raise or suspend the debt ceiling”.
Ratings agency Fitch on Wednesday placed the United States on watch for a possible downgrade at risk of default amid the government’s impasse over raising the national borrowing limit.
Fitch said the AAA rating “reflects heightened political partisanship that is hindering reaching a resolution to raise or suspend the debt ceiling”.
The US Treasury Department has said that June 1 is the “X-date” when the government will run out of money, triggering a default with potentially devastating economic consequences.
“Fitch still expects resolution of the debt ceiling before the X-date,” Fitch said in a statement. The government may start defaulting on some of its obligations.”
President Joe Biden has been involved in months of tense negotiations with the Republican opposition in Congress, who have said they will agree to raising the borrowing limit only in exchange for significant spending cuts.
Republicans, dominated by a hard-right faction loyal to former President Donald Trump, have decided to use this typically mundane process to force Biden to trim health care and other social programs.
The Biden administration said on Wednesday that it still sees a path to a deal, although there are no concrete signs that the two sides are moving toward an agreement.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – AFP,
