""Rising debt comes with a long list of economic risks, including the threat that the cost of servicing that debt might crowd out other essential government spending.""
""Fitch currently maintains the U.S. at a AA+ rating, having downgraded it from its premier AAA rating in 2023 due to continued political run-ins over the U.S. debt ceiling that repeatedly risked sparking a default on debt.""
""Structurally large fiscal deficits will keep the U.S.'s debt burden far above that of other 'AA' category sovereigns.""
""Years of fiscal malpractice were a growing constraint on the rating, despite the U.S. remaining in AA territory largely thanks to the dollar's reserve-currency status and deep capital markets.""
The U.S. public debt has exceeded its GDP for the first time since World War II, reaching $31.27 trillion against a GDP of $31.22 trillion. This rising debt poses economic risks, including potential crowding out of essential government spending and a deterioration of the country's credit rating. Fitch Ratings has warned that the U.S. risks slipping from its current AA+ rating due to high debt levels and ongoing political issues surrounding the debt ceiling. Years of fiscal malpractice are increasingly constraining the U.S. credit rating despite its reserve-currency status.
Read at Fortune
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