{"id":585398,"date":"2023-08-02T22:58:47","date_gmt":"2023-08-02T19:58:47","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/lawmakers-express-outrage-over-surprise-fitch-decision\/"},"modified":"2023-08-02T22:58:47","modified_gmt":"2023-08-02T19:58:47","slug":"lawmakers-express-outrage-over-surprise-fitch-decision","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/lawmakers-express-outrage-over-surprise-fitch-decision\/","title":{"rendered":"#Lawmakers express outrage over surprise Fitch decision"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2fad0d84e44\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2fad0d84e44\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/lawmakers-express-outrage-over-surprise-fitch-decision\/#White_House_perplexed\" >White House perplexed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/lawmakers-express-outrage-over-surprise-fitch-decision\/#Conservative_Republicans_outraged\" >Conservative Republicans outraged<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/lawmakers-express-outrage-over-surprise-fitch-decision\/#Yellen_says_she_didnt_understand_the_move\" >Yellen says she didn\u2019t understand the move<\/a><\/li><\/ul><\/nav><\/div>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/07\/64a763d8274d36.80854182.jpeg?w=900\" \/><\/p>\n<div>\n<p>The move by market agency Fitch Ratings to downgrade the United States\u2019s debt rating has startled lawmakers and policymakers alike, who said Wednesday that they were perplexed by the move amid strong recent economic indicators.<\/p>\n<p>In addition, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> Wednesday that U.S. political instability reflected in the Jan. 6, 2021, insurrection at the Capitol was a factor in the downgrading has further confused the Beltway, which was already reeling from a third indictment of former President Trump.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>Fitch downgraded its issuer default rating for the U.S. on Tuesday evening, surprising investors, roiling equity markets and sending bond yields higher Wednesday morning.\u00a0<\/p>\n<p>Treasury Secretary\u00a0Janet Yellen\u00a0was also vocal about the move by Fitch Ratings, slamming it on Wednesday as \u201cflawed\u201d and \u201centirely unwarranted.\u201d<\/p>\n<p>\u201cFitch\u2019s decision is puzzling in light of the economic strength we see in the United States,\u201d Yellen said in prepared remarks. \u201c[The U.S.] remains the world\u2019s largest, most dynamic, and most innovative economy \u2014 with the strongest financial system in the world.\u201d<\/p>\n<p>The agency cited the \u201cerosion of governance\u201d and \u201cfiscal deterioration over the next three years\u201d as reasons for the downgrade, also mentioning the debt ceiling default that nearly crashed the U.S. and global economy in June.<\/p>\n<p>\u201cYou have the debt ceiling, you have Jan. 6. Clearly, if you look at polarization with both parties \u2026 the Democrats have gone further left and Republicans further right, so the middle is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/us\/fitch-decision-cut-us-credit-rating-based-deteriorating-governance-polarization-2023-08-02\/\">kind of falling apart basically<\/a>,\u201d Richard Francis, a senior director at Fitch, told Reuters.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"White_House_perplexed\"><\/span>White House perplexed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The downgrade is being met with criticism from both parties, who don\u2019t seem to be shying away from pointed partisan rhetoric despite the assessment of increasing polarization.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>\u201cWe strongly disagree with this decision. The ratings model used by Fitch declined under President Trump and then improved under President Biden,\u201d White House press secretary Karine Jean-Pierre said in a Tuesday statement.<\/p>\n<p>\u201cIt\u2019s clear that extremism by Republican officials \u2014 from cheerleading default, to undermining governance and democracy, to seeking to extend deficit-busting tax giveaways for the wealthy and corporations \u2014 is a continued threat to our economy,\u201d she said.<\/p>\n<p>\u201cThe United States faces serious long-run fiscal challenges. But the decision of a credit rating agency today, as the economy looks stronger than expected, to downgrade the United States is bizarre and inept,\u201d posted <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LHSummers\/status\/1686491454154125313\">former Treasury Secretary Larry Summers<\/a>\u00a0on X,\u00a0the platform formerly known as <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Conservative_Republicans_outraged\"><\/span>Conservative Republicans outraged<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Rep. Blaine Luetkemeyer (R-Mo.) said in a Wednesday statement he had concerns about \u201cFitch\u2019s history of subjective ratings\u201d but also went after Democrats\u2019 spending that he called \u201creckless.\u201d<\/p>\n<p>\u201cReckless fiscal policy that caused the inflation we\u2019re still suffering is also harming confidence in our currency and treasuries. House Republicans understood this truth which is the reason Speaker [Kevin McCarthy] made countless attempts to start a dialogue with the White House months before the debt limit was reached,\u201d Luetkemeyer said.<\/p>\n<p>Other GOP members said that Biden\u2019s recent legislative decisions were key in pushing Fitch into deciding the government could not work together.<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>\u201cWhen Fitch specifically cited the problem of \u2018last-minute\u2019 resolutions, they may as well have noted Biden\u2019s refusal to negotiate with Republicans for months, while insisting on even more wasteful spending,\u201d House Ways and Means Committee Chairman Jason Smith (R-Mo.) said on Fox News on Tuesday.<\/p>\n<p>\u201cPresident Biden\u2019s brinksmanship \u2014 not to mention the $10 trillion in new spending he and Washington Democrats passed over the past two years \u2014 pushed America\u2019s credit rating off the ledge,\u201d Smith said.<\/p>\n<p>\u201cNow families and small businesses already dealing with soaring interest rates and lost wages from Biden\u2019s\u00a0inflation crisis will also have to face the consequences of a reduced confidence in America\u2019s sovereign debt.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Yellen_says_she_didnt_understand_the_move\"><\/span>Yellen says she didn\u2019t understand the move<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Yellen reiterated that the new Fitch rating \u201cdoes not change what all of us already know: that Treasury securities remain the world\u2019s preeminent safe and liquid asset, and that the American economy is fundamentally strong.\u201d<\/p>\n<p>The White House may be working on a proposal following the creation by Biden of a working group in July to look at ways to minimize debt ceiling brinkmanship.<\/p>\n<p>Interest groups in Washington have welcomed the working group\u2019s efforts.<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>\u201cPresident Biden should be commended for making reform of our broken debt limit process a priority,\u201d Shai Akabas, executive director of economic policy with the Bipartisan Policy Center, a Washington think tank, said in a statement last month.\u00a0<\/p>\n<p>\u201cWe urge him to work with congressional leaders from both parties on reform that will avoid the kind of brinkmanship we experienced earlier this year,\u201d he wrote.<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/4134013-white-house-lawmakers-express-anger-surprise-at-downgrade-by-fitch\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The move by market agency Fitch Ratings to downgrade the United States\u2019s debt rating has startled lawmakers and policymakers alike, who said Wednesday that they were perplexed by the move amid strong recent economic indicators. In addition, news Wednesday that U.S. political instability reflected in the Jan. 6, 2021, insurrection at the Capitol was a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":585399,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/07\/64a763d8274d36.80854182.jpeg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[81188,78209,144810,117,134343,116734,144811,144812,73014,134476,991,134614,128999,88069,32681,70289],"class_list":["post-585398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-janet-yellen","tag-2024-presidential-election","tag-blaine-luetkemeyer","tag-business","tag-campaign","tag-debt-ceiling","tag-fitch","tag-fitch-ratings","tag-health-care","tag-jason-smith","tag-joe-biden","tag-judiciary","tag-karine-jean-pierre","tag-larry-summers","tag-politics","tag-senate"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/585398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=585398"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/585398\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/585399"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=585398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=585398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=585398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}