According to the Vietnam News Agency correspondent in Washington, the US newspaper The Hill reported that the Fitch Ratings company suddenly lowered the US credit score from AAA to AA+ on the evening of August 1, causing a shockwave throughout Washington, causing a shock wave. Lawmakers and policymakers were surprised by recent positive inflation and unemployment indicators of the world's No. 8 economy.
Fitch Ratings cited reasons for the downgrade of the US credit rating, including "administrative erosion" and the prospect that a "financial recession in the next three years" would be exacerbated by the political instability that emerged. revealed in the riots on January 3, 6. Fitch senior director Richard Francis explained that factors such as the debt ceiling issue and the growing polarization between the two political parties in the US contributed to the decision. The divergence between Democrats and Republicans has led to a widening political divide, causing the "center" bloc to collapse.
US Treasury Secretary Janet Yellen (image) said that Fitch's decision was "completely baseless". In her speech, Ms. Yellen highlighted the strength of the US economy, the world's largest, most dynamic and most innovative economy with a strong financial system.
Meanwhile, White House spokeswoman Karine Jean-Pierre also issued a statement strongly reacting to Fitch's move. Jean-Pierre said that the radical attitude of the Republican Party has undermined governance and pushed the US economy into a fraught situation.
Republicans also voiced outrage at the decision. Congressman Blaine Luetkemeyer, representing Missouri, criticized Fitch's subjective ratings and criticized Democrats for spending their hands on inflation problems. Meanwhile, former US Treasury Secretary Larry Summers posted on social media platform X (formerly Twitter) calling Fitch's decision "weird and incompetent".
The White House is said to be working on a proposal to solve the public debt problem after President Joe Biden set up a working group in July. Interest groups in Washington have welcomed these efforts, calling for reforms to avoid a repeat of future default scenarios and ensure economic stability.
DOAN HUNG
