Fitch Cuts U.S. Long-Term Ratings From 'AAA' to 'AA+'

The transcript discusses Fitch's concerns about the growing US budget deficit, which is expected to rise significantly, leading to a rating downgrade. It highlights the erosion of governance and frequent debt ceiling standoffs that have impacted markets. The Treasury's increasing bond sales and market concerns are also addressed, with Janet Yellen disagreeing with Fitch's decision. The transcript concludes with the Fitch rating's implications for the market, noting that Moody's is the only agency maintaining a top rating for the US.

What is Fitch's main concern regarding the U.S. budget deficit?

• The deficit is irrelevant to the economy.

• The deficit is increasing from 3% to over 6% of GDP.

• The deficit is stable.

• The deficit is decreasing.

What does Fitch highlight as a reason for the rating downgrade?

• Stable government debt

• Expected fiscal deterioration

• Fiscal improvement

• Improved governance

What is one of the major activities of the U.S. Treasury discussed?

• Issuing new currency

• Selling government bonds

• Increasing interest rates

• Reducing taxes

How has the size of the Treasury's bond sales changed?

• Fluctuated randomly

• Remained the same

• Increased significantly

• Decreased significantly

Which rating agency still maintains an A rating for the U.S.?

• Fitch

• Standard & Poor's

• Moody's

• None of the above