Fitch Considers Downgrading US Credit Rating Despite Debt Deal

Fitch Ratings warned that it could still downgrade the US credit rating despite Congress passing a bill to raise the debt ceiling and cut spending. The repeated political standoffs over the federal government's borrowing limit have lowered confidence in governance on fiscal and debt matters. A credit downgrade could drive up borrowing costs for consumers, businesses, and governments, tightening credit conditions at a time when the economy is already at risk of recession. Fitch intends to resolve its negative watch by the end of September.