All articles tagged with #us credit downgrade
Warren Buffett is unconcerned about Fitch Ratings' downgrade of US credit from AAA to AA+. He stated that his company, Berkshire Hathaway, recently purchased $10 billion worth of US Treasuries and plans to continue buying more. Buffett's confidence suggests that he, like others on Wall Street, believes the downgrade will have minimal long-term negative effects on the economy, the government's borrowing ability, or the safety of US Treasuries.
Office of Management and Budget director Shalanda Young said that bringing the US to the brink of default was bad for the country and the global economy. Though Congress was able to reach a deal to raise the debt limit ahead of the June 5 "X-date," Fitch Ratings, the international credit rating agency, said that "repeated political standoffs" over the federal government's borrowing limit "lowers confidence in governance on fiscal and debt matters." The end result was not a victory for Democrats or Republicans, but "a reasonable bipartisan agreement you would expect to see in [a] divided government."