Reuters was first to interview the U.S. analyst at Fitch who made the call to cut the U.S. credit rating by one notch. The ratings call was a shock and surprise to markets and investors, coming two months after a debt ceiling crisis was averted. The U.S. credit rating is arguably the most important globally due to widespread use of U.S. Treasuries and the status of the dollar as the world’s reserve currency.
Fitch’s move sparked immediate criticism from the White House and bafflement from many. In the high-profile interview, Fitch analyst Richard Francis explained that political polarization in the United States was a contributing factor to the agency’s decision, including the January 6 insurrection – an episode which Fitch highlighted in talks with the Treasury ahead of the downgrade. He went through key moments leading up to the decision including the talks with Treasury. Francis talked about the disintegration of US politics and ability to fix debt issues. He went into future action on the rating and what factors would make him cut or raise further.
Fitch’s decision was also predicted in a prescient analysis in June where Reuters reported that a sovereign downgrade was still on the cards, as 11th-hour debt ceiling negotiations have become an almost regular feature in recent U.S. history.
The post Fitch highlighted Jan. 6 insurrection with Treasury ahead of US downgrade appeared first on Reuters News Agency.
Source: Reuters News Agency
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