US Credit Rating at Risk Amid Political Turmoil and Debt Default Concerns

Fitch has warned that the United States could lose its AAA credit rating if it fails to resolve the political standoff on the debt limit, which could increase long-term borrowing costs for the US Treasury. The Biden administration is currently in a battle with House Speaker Kevin McCarthy over plans to raise the debt ceiling, with the Treasury warning that the money could run out as soon as June 1. Fitch has put the top-rated government debt on "rating watch negative," reflecting fears the US could default on its debts.