Critics of President Joe Biden are expressing strong disapproval of his economic policies, accusing him of reckless spending and mismanagement of the economy, leading to record inflation.
Despite this, Biden attempts to take credit for successes that some argue he had little to do with. Fitch Ratings has downgraded the country’s credit rating from “AAA” to “AA+” due to concerns about growing debt and political polarization.
This comes after Biden raised the debt limit, exacerbating the situation. The Federal Reserve’s interest rate hikes have also contributed to economic challenges, and Fitch’s downgrade may further escalate interest rates.
The Biden administration is trying to spin the situation in their favor, with Treasury Secretary Janet Yellen calling the downgrade “arbitrary and based on outdated data.” However, critics argue that the administration’s fiscal policies have been irresponsible and have led to significant debt accumulation.
Biden’s team attempts to shift blame to former President Donald Trump and congressional Republicans, but critics believe that the responsibility lies with the current administration’s spending habits.
Despite their efforts, the Biden team’s attempts to deflect the criticism appear desperate, and the downgrade is likely to have negative implications for the administration ahead of the upcoming election.
NBC Nightly News was the only one of the big three broadcast networks to cover the U.S. credit limit being downgraded by Fitch. pic.twitter.com/kQ8aNstz8V— Kevin Tober (@KevinTober94) August 1, 2023
Wow.— Heather Long (@byHeatherLong) August 1, 2023
Fitch says it downgraded US gov’t debt for 3 reasons:
1) “the expected fiscal deterioration over the next 3 years”
2) “a high and growing general government debt burden”
3) the erosion of governance (compared to other AAA rated peers) https://t.co/918Cm0W5gQ