EDITOR NOTE: Caveat: the title and content of this Financial Post article are misleading. One says stable to negative while the other says negative to stable. But make no mistake, the situation is leaning toward the negative. There’s no doubt that America’s public finances are deteriorating. What you should be watching out for is the acceleration of this negative trend; in short, when it happens and how fast it moves.
Ratings agency Fitch on Friday cut its outlook on the United States from “negative” to “stable,” citing deterioration in the country’s public finances and the absence of a credible fiscal consolidation plan.
It affirmed its “AAA” rating on the country.
“There is a growing risk that U.S. policymakers will not consolidate public finances sufficiently to stabilize public debt after the pandemic shock has passed,” Fitch said in a statement. (Reporting by Nishara Karuvalli Pathikkal in Bengaluru; Editing by Anil D’Silva)
Originally posted on Financial Post