The credit downgrade of the United States by Fitch Ratings does not dilute the standing of the country’s Treasury instruments as the world’s most dependable assets for investment.
“At the end of the day, Fitch’s decision does not change what all of us already know,” Yellen said in a speech delivered at an event hosted by the Internal Revenue Service. On Tuesday, Fitch Ratings announced that it downgraded the credit rating of the United States from AAA to AA, citing fiscal deterioration over the next three years. The ratings agency also said it found troubling the debt limit standoffs between the two major political parties in Congress – Republicans and Democrats – and their last-minute resolutions to avoid debt default.
