After the leading Credit Rating Agency dropped its assessment of the U.S. credit rating from “AAA” to “AA+”, Congress is eyeing to release new bills to increase federal spending following the lower U.S. credit ratings release, with rising debts as the main problem of the fiscal government.

After the leading Credit Rating Agency dropped its assessment of the U.S. credit rating from “AAA” to “AA+”, Congress is eyeing to release new bills to increase federal spending with rising debts as the main problem of the fiscal government. (Photo: Brimco)

U.S Credit Rating Lowered by Fitch, U.S. Credit Rating Was an “Embarrassing Blow”

According to The Hill‘s published article, America’s debt has now climbed to a staggering $32 Trillion. Fitch says that the Biden Administration’s and Congress’s incapacity to handle the growing debt in efficient ways has contributed to the downgrade in the U.S. credit rating, and was seen to be a threat to the country’s creditworthiness, affecting the government’s fiscal management.

When President Biden ratified a deal on hiking the debt limit even before the national debt was put into default, the rein in U.S. credit rating was even more pressed. Fitch sees the downgrade in the U.S. credit rating as an “embarrassing blow” considering the fact the U.S. has been seen to be one of the safest borrowers in global finance.

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U.S Credit Rating Drawback, Is Federal Spending Right To Address U.S. Credit Rating?

According to a report, Congress is eyeing new bills to boost spending and deficit but with drawbacks of U.S credit rating such as imposing higher interest rates, Fitch outlined that government should provide long-term plans such as preventing the destitution of programs like Social Security and Medicare.

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