“A fresh fiscal showdown is brewing in Washington that threatens to complicate the Federal Reserve’s policy making and strengthen Fitch Ratings’ warning that self-inflicted wounds are tarnishing America’s standing in the global economy,” Bloomberg reports.
“Congress left for an extended August recess without resolving simmering conflicts over spending and hot-button social issues, raising the risk of a government shutdown when federal funding runs out after Sept. 30. It’s the latest case of brinkmanship over the national budget that fueled Fitch’s move to strip US debt of its prized AAA status last week — a landmark decision that’s caused hand-wringing across Wall Street and Washington.”
“The credit rating company’s determination has emboldened Republicans to call on President Joe Biden and congressional Democrats to yield to their demands for fresh spending cuts.”
