{"id":8311,"date":"2023-08-05T19:21:38","date_gmt":"2023-08-05T19:21:38","guid":{"rendered":"https:\/\/isafespend.com\/news\/janet-yellen-doubles-down-on-criticism-of-fitchs-us-credit-downgrade\/"},"modified":"2023-08-05T19:21:39","modified_gmt":"2023-08-05T19:21:39","slug":"janet-yellen-doubles-down-on-criticism-of-fitchs-us-credit-downgrade","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=8311","title":{"rendered":"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade"},"content":{"rendered":"
<\/p>\n
\n
\n
<\/div>\n<\/div>\n<\/div>\n

Treasury Secretary Janet Yellen<\/u> doubled down on her criticism of Fitch\u2019s downgrade of the U.S. government\u2019s long-term credit rating in remarks on Wednesday.<\/p>\n

Fitch Ratings announced the downgrade on Tuesday, which dropped the U.S. credit rating by one notch from its highest rating \u2018AAA\u2019 to \u2018AA+\u2019 citing an “erosion of governance” that has manifested itself in repeated debt limit standoffs. Fitch also sees federal deficits widening and exacerbating an already large national debt, looming fiscal challenges posed by rising spending on Social Security and Medicare<\/u>, in addition to a mild recession projected in late 2023 and early 2024.<\/p>\n

Yellen pushed back on the downgrade, arguing that the U.S. economy “continues to grow” and added, “In the longer term, the United States remains the world\u2019s largest, most dynamic, and most innovative economy \u2013 with the strongest financial system in the world.”<\/p>\n

“Fitch\u2019s decision is puzzling in light of the economic strength we see in the United States. I strongly disagree with Fitch\u2019s decision, and I believe it is entirely unwarranted,” Yellen said. “Its flawed assessment is based on outdated data and fails to reflect improvements across a range of indicators, including those related to governance, that we\u2019ve seen over the past two and a half years.”<\/p>\n

FITCH DOWNGRADES US\u2019 LONG-TERM RATINGS FROM \u2018AAA\u2019 TO \u2018AA+\u2019<\/u><\/strong><\/p>\n

\n
<\/source><\/source><\/source><\/source><\/picture><\/div>\n<\/p><\/div>\n

“Despite the gridlock, we have seen both parties come together to pass legislation to resolve the debt limit, as well as to make historic investments in our infrastructure and American competitiveness,” Yellen added.<\/p>\n

Investors use credit ratings to assess the risk profile of companies and governments when they raise funding by issuing debt in capital markets. Generally, the lower a borrower\u2019s rating, the higher its financing cost \u2013 which is reflected in relatively higher interest rates.<\/p>\n

BIDEN \u2018PUSHED AMERICA\u2019S CREDIT RATING OFF THE LEDGE\u2019 WITH FITCH DOWNGRADE, GOP SAYS<\/u><\/strong><\/p>\n

\n
\"US<\/source><\/source><\/source><\/source><\/picture><\/div>\n<\/p><\/div>\n

In announcing the downgrade, Fitch spotlighted several aspects of the U.S. that support keeping its credit rating relatively high \u2013 including the dollar\u2019s status as the world\u2019s leading reserve currency.<\/p>\n

“Several structural strengths underpin the United States\u2019 ratings. These include its large, advanced, well-diversified and high-income economy, supported by a dynamic business environment. Critically, the U.S. dollar is the world\u2019s preeminent reserve currency, which gives the government extraordinary financing flexibility,” Fitch wrote.<\/p>\n

SOCIAL SECURITY ON A PATH TO MAJOR BENEFIT CUTS UNLESS CONGRESS ACTS, CBO DIRECTOR SAYS<\/u><\/strong><\/p>\n

\n
\"Congress<\/source><\/source><\/source><\/source><\/picture><\/div>\n<\/p><\/div>\n

America\u2019s credit rating was downgraded for the first time in 2011 following a debt ceiling standoff that was eventually resolved with a compromise on automatic spending cuts known as “sequestration.”\u00a0<\/p>\n

At the time, Standard & Poor\u2019s cut the rating from \u2018AAA\u2019 (outstanding) to \u2018AA+\u2019 (excellent), although Fitch and Moody\u2019s kept the U.S. at \u2018AAA\u2019 at the time.<\/p>\n

<\/u><\/strong><\/p>\n

FOX Business\u2019 Breck Dumas contributed to this report.<\/i><\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Treasury Secretary Janet Yellen doubled down on her criticism of Fitch\u2019s downgrade of the U.S. government\u2019s long-term credit rating in remarks on Wednesday. Fitch Ratings announced the downgrade on Tuesday, which dropped the U.S. credit rating by one notch from its highest rating \u2018AAA\u2019 to \u2018AA+\u2019 citing an “erosion of governance” that has manifested itself<\/p>\n","protected":false},"author":1,"featured_media":8312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":{"0":"post-8311","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"\nJanet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade | iSafeSpend<\/title>\n<meta name=\"description\" content=\"Treasury Secretary Janet Yellen doubled down on her criticism of Fitch\u2019s downgrade of the U.S. government\u2019s long-term credit rating in remarks on\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/isafespend.com\/?p=8311\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade | iSafeSpend\" \/>\n<meta property=\"og:description\" content=\"Treasury Secretary Janet Yellen doubled down on her criticism of Fitch\u2019s downgrade of the U.S. government\u2019s long-term credit rating in remarks on\" \/>\n<meta property=\"og:url\" content=\"https:\/\/isafespend.com\/?p=8311\" \/>\n<meta property=\"og:site_name\" content=\"iSafeSpend\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-05T19:21:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-05T19:21:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/1691263298_GettyImages-1247991216.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/isafespend.com\/?p=8311#article\",\"isPartOf\":{\"@id\":\"https:\/\/isafespend.com\/?p=8311\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/isafespend.com\/#\/schema\/person\/5b8c1c75336efaf09b163cd1eab0c9bf\"},\"headline\":\"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade\",\"datePublished\":\"2023-08-05T19:21:38+00:00\",\"dateModified\":\"2023-08-05T19:21:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/isafespend.com\/?p=8311\"},\"wordCount\":486,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/isafespend.com\/#organization\"},\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/isafespend.com\/?p=8311#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/isafespend.com\/?p=8311\",\"url\":\"https:\/\/isafespend.com\/?p=8311\",\"name\":\"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade | iSafeSpend\",\"isPartOf\":{\"@id\":\"https:\/\/isafespend.com\/#website\"},\"datePublished\":\"2023-08-05T19:21:38+00:00\",\"dateModified\":\"2023-08-05T19:21:39+00:00\",\"description\":\"Treasury Secretary Janet Yellen doubled down on her criticism of Fitch\u2019s downgrade of the U.S. government\u2019s long-term credit rating in remarks on\",\"breadcrumb\":{\"@id\":\"https:\/\/isafespend.com\/?p=8311#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/isafespend.com\/?p=8311\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/isafespend.com\/?p=8311#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/isafespend.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/isafespend.com\/#website\",\"url\":\"https:\/\/isafespend.com\/\",\"name\":\"Solutions For Real\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/isafespend.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/isafespend.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/isafespend.com\/#organization\",\"name\":\"Solutions For Real\",\"url\":\"https:\/\/isafespend.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/isafespend.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"contentUrl\":\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"width\":690,\"height\":64,\"caption\":\"Solutions For Real\"},\"image\":{\"@id\":\"https:\/\/isafespend.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/isafespend.com\/#\/schema\/person\/5b8c1c75336efaf09b163cd1eab0c9bf\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/isafespend.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"contentUrl\":\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/isafespend.com\"],\"url\":\"https:\/\/isafespend.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade | iSafeSpend","description":"Treasury Secretary Janet Yellen doubled down on her criticism of Fitch\u2019s downgrade of the U.S. government\u2019s long-term credit rating in remarks on","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/isafespend.com\/?p=8311","og_locale":"en_US","og_type":"article","og_title":"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade | iSafeSpend","og_description":"Treasury Secretary Janet Yellen doubled down on her criticism of Fitch\u2019s downgrade of the U.S. government\u2019s long-term credit rating in remarks on","og_url":"https:\/\/isafespend.com\/?p=8311","og_site_name":"iSafeSpend","article_published_time":"2023-08-05T19:21:38+00:00","article_modified_time":"2023-08-05T19:21:39+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/1691263298_GettyImages-1247991216.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/isafespend.com\/?p=8311#article","isPartOf":{"@id":"https:\/\/isafespend.com\/?p=8311"},"author":{"name":"News Room","@id":"https:\/\/isafespend.com\/#\/schema\/person\/5b8c1c75336efaf09b163cd1eab0c9bf"},"headline":"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade","datePublished":"2023-08-05T19:21:38+00:00","dateModified":"2023-08-05T19:21:39+00:00","mainEntityOfPage":{"@id":"https:\/\/isafespend.com\/?p=8311"},"wordCount":486,"commentCount":0,"publisher":{"@id":"https:\/\/isafespend.com\/#organization"},"articleSection":["News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/isafespend.com\/?p=8311#respond"]}]},{"@type":"WebPage","@id":"https:\/\/isafespend.com\/?p=8311","url":"https:\/\/isafespend.com\/?p=8311","name":"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade | iSafeSpend","isPartOf":{"@id":"https:\/\/isafespend.com\/#website"},"datePublished":"2023-08-05T19:21:38+00:00","dateModified":"2023-08-05T19:21:39+00:00","description":"Treasury Secretary Janet Yellen doubled down on her criticism of Fitch\u2019s downgrade of the U.S. government\u2019s long-term credit rating in remarks on","breadcrumb":{"@id":"https:\/\/isafespend.com\/?p=8311#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/isafespend.com\/?p=8311"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/isafespend.com\/?p=8311#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/isafespend.com\/"},{"@type":"ListItem","position":2,"name":"Janet Yellen doubles down on criticism of Fitch\u2019s US credit downgrade"}]},{"@type":"WebSite","@id":"https:\/\/isafespend.com\/#website","url":"https:\/\/isafespend.com\/","name":"Solutions For Real","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/isafespend.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/isafespend.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/isafespend.com\/#organization","name":"Solutions For Real","url":"https:\/\/isafespend.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/isafespend.com\/#\/schema\/logo\/image\/","url":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","contentUrl":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","width":690,"height":64,"caption":"Solutions For Real"},"image":{"@id":"https:\/\/isafespend.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/isafespend.com\/#\/schema\/person\/5b8c1c75336efaf09b163cd1eab0c9bf","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/isafespend.com\/#\/schema\/person\/image\/","url":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","contentUrl":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","caption":"News Room"},"sameAs":["https:\/\/isafespend.com"],"url":"https:\/\/isafespend.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/posts\/8311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8311"}],"version-history":[{"count":1,"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/posts\/8311\/revisions"}],"predecessor-version":[{"id":8313,"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/posts\/8311\/revisions\/8313"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/media\/8312"}],"wp:attachment":[{"href":"https:\/\/isafespend.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}