7.31.20
Last Friday, July 31, Fitch Ratings announced that they would be lowering the U.S. government’s credit rating outlook from “stable” to “negative” but would be keeping the U.S.’s overall credit rating as AAA. Fitch indicated that they made this revision because of the growing U.S. deficit and “an absence of a credible fiscal consolidation plan” to control the deficit. In their analysis, Fitch noted that they expect the deficit to increase to 20% of U.S. GDP through the rest of the year and that future expectations of U.S. credit rating outlook would be determined through future fiscal policy. The Congressional Budget Office has projected that the deficit by the end of the fiscal year would be $3.7 trillion.