Fitch Ratings, one of the world’s leading credit rating agencies, has downgraded the credit rating of the United States.
Accordingly, Fitch Rating has taken steps to downgrade the United States of America from AAA to AA+. The relevant institutions also state that the credit rating has been lowered after considering the current financial situation of the United States and the country’s debt burden.
Fitch Ratings also said in its announcement that there has been a steady decline in governance in the United States economy over the past two decades. “The downgrade in the United States reflects the expected fiscal decline over the next three years, elevated and growing general government debt and the erosion of financial control,” Fitch said in the statement.
In the meantime, Fitch Rating has also indicated that there is a lot of uncertainty in the United States of America, where the decision regarding the maximum credit limits has been heavily affected by the instability of the economy.
US Treasury Secretary Janet Yellen disagreed with the credit ratings, which she described as “arbitrary and based on outdated data.” In the meantime, the White House also held a similar opinion regarding the relevant credit rating, and issued a statement stating that it strongly disagrees with the decision.
Meanwhile, the US economy is showing severe inflation and the number of people who lost their homes in the country had increased rapidly in the past. Also, the power of the US dollar showed a decline in the recent past and many countries had expressed a strong desire to use another currency instead of the US dollar for their international transactions.
