Fitch put the country's "AAA" rating, its highest rank, on a negative watch in a precursor to a possible downgrade should lawmakers fail to raise the amount that the Treasury can borrow before it runs out of money, the so-called X-date.
President Joe Biden's administration and congressional Republicans are at an impasse over raising the federal US$31.4 trillion debt ceiling, with both sides casting the other's proposals as too extreme. U.S. Treasury Secretary Janet Yellen on Sunday said June 1 remained a "hard deadline" for raising the federal debt limit.
Fitch now predicts that the U.S. government will spend more than it earns, creating a deficit of 6.5 per cent of the country's total economy in 2023 and 6.9 per cent in 2024.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: