The Biden administration has been making the case that the economy is slowly improving. Inflation has steadily inched back down toward 2021 levels, unemployment has hovered around 4% for over a year, and the Federal Reserve finally announced in July that it no longer expects a recession in the near future.
Still, Fitch specifically cited partisan “gridlock” and clear separation between Republican and Democrat spending priorities as the reason behind the downgrade, which dropped the United States from a “AAA” to “AA+” rating
The president is currently vacationing in Rehoboth Beach, Delaware, but senior administration officials and the president’s private sector allies have used the downgrade as an opportunity to blame the downgrade on Republicans.
Treasury Secretary Janet Yellen called the downgrade “puzzling” and “unwarranted” while speaking to IRS employees on Wednesday and said that Republicans and Democrats can still find bipartisan accord on spending and appropriations.
Read more at Washingtonexaminer.com
What Are Your Thoughts?
