The Impact of U.S. Credit Rating Downgrade and Rising Debt under Biden's Economic Policies

Fitch Ratings has downgraded the U.S. government's credit rating from "AAA" to "AA+" due to concerns over rising federal debt and political dysfunction. The decision came as a shock to senior Biden aides who were optimistic that their successful handling of a debt ceiling standoff earlier this year would prevent a downgrade. The Biden administration has emphasized its efforts to improve governance and reduce the deficit, but Fitch cited the growing debt burden and repeated debt limit standoffs as reasons for the downgrade. The rising debt poses a political challenge for President Biden, and experts warn of long-term fiscal threats if Congress fails to address the issue.