Fitch Ratings placed the United States’ AAA credit rating on “rating watch negative” on May 25, citing concerns about a possible downgrade due to the ongoing political deadlock over the debt ceiling.
As negotiations between House Republicans and The White House stretch into a third week, Fitch expressed concern about brinkmanship in the debt ceiling talks caused by increasingly entrenched partisanship in policymaking.
Time is running out to strike a deal to address an impending default, as the U.S. Treasury Department could exhaust its cash to pay bills as early as next week from June 1. The United States defaulting on its debts could have disastrous economic effects at home and abroad….