U.S. Banks Brace for Costly Credit Downgrade, Raising Borrowing Rates

Fitch Ratings has warned that it may downgrade the credit rating of the U.S. banking sector operating environment, potentially leading to credit downgrades for over 70 individual banks, including major institutions like JP Morgan Chase and Bank of America. If downgraded, banks would face higher borrowing costs, which would likely be passed on to consumers in the form of higher interest rates. This comes as banks are already under pressure from the Federal Reserve's anti-inflation interest rate hikes, which have reduced the value of their assets.