(Washington Composite Electric) The International Credit Institution Fitch on Wednesday (May 24) announced that the US AAA credit rating is included in a negative observation list, thinking that the current debt limit negotiation deadlock makes the US sovereign credit rating moreLarge risk.
As the US debt limit negotiations entered the last moment, Fitch exacerbated the uneasy mood of the global market.Fitch to include AAA credit rating in the United States on a negative list of negative observations means that if the US Congress members fail to increase the upper limit of the debt before consuming funds from the Ministry of Finance, the rating may be adjusted.The U.S. Treasury predicts that it can use The fastest may be exhausted on June 1st .
Fitch shows that although it is still expected to reach an agreement on the issue of debt limits before the U.S. government may not be able to repay some debt risks have increased.
For Fitch's decision, Sika Morr, an analyst at the Australian financial trading service provider Ig Markets, told Reuters: "In view of the chaotic situation of debt -limited negotiations, this is not completely unexpected. This is not a good sign."
U.S. Treasury Minister Yellen said on the same day that President Biden was willing to freeze government expenditure at the current level, reducing the deficit to US $ 1 trillion (about S $ 135 billion).Biden has previously promised that the federal budget deficit will be reduced by nearly $ 3 trillion in the next 10 years.
Yellen also revealed that the Bayeng government did not prepare for debt defaults. Instead, he focused on reaching an agreement on the debt limit, that is, what he wanted to do now is to increase the upper limit of debt.When asked by the media whether the Ministry of Finance cooperated with the major banks to formulate a breach of contract, she said: "We have not participated in the plan that may occur after the default of the debt."
