Fitch Says It Didn't Want to Rush US Downgrade

The video discusses the resolution of the debt ceiling dispute and the implications of the Fiscal Responsibility Act on deficits and debt levels. It analyzes the rising debt to GDP ratio, the impact of macroeconomic policies, and the role of governance indicators in rating decisions. The discussion also covers the implications of rating changes on the risk-free rate and broader markets, emphasizing the US's economic strengths and challenges.

What was the purpose of the Fiscal Responsibility Act in relation to the debt ceiling?

• To increase government spending

• To introduce new fiscal policies

• To resolve the debt ceiling dispute

• To lower taxes

How has the debt-to-GDP ratio changed since the great financial crisis of 2007?

• It has remained stable

• It has decreased significantly

• It has increased significantly

• It has fluctuated without a clear trend

What is the expected economic condition in the fourth quarter and first quarter of next year?

• Stagnation

• Economic growth

• A mild recession

• A severe recession

What was Treasury Secretary Janet Yellen's main criticism of the downgrade decision?

• It was too lenient

• It ignored recent economic growth

• It was based on outdated governance indicators

• It was influenced by political factors

What is one of the key strengths of the US economy mentioned in the context of the downgrade?

• Its limited market access

• Its reserve currency status

• Its small size

• Its low debt levels

How does the US treasury market contribute to the country's economic strength?

• By being shallow and illiquid

• By offering limited financing options

• By having high interest rates

• By being deep and liquid

What is the current rating of the US after the downgrade?

• AA+

• AA

• A+

• AAA