Fitch Ratings on Thursday said the US outlook remains stable and the outcome of the 2024 presidential election will have little effect on Washington's fiscal policies.
The ratings company affirmed the US credit rating as “AA+” due to its structural strength as the world's largest economy, its high per capita income and “tremendous” financial flexibility.
Fitch downgraded the US' once-perfect credit rating last year after a long debt-ceiling battle between the White House and Congress, which drew a furious response from President Joe Biden's administration. The agency also gave the country's rising fiscal deficits as a reason for its decisions.
“The government has failed to meaningfully tackle large fiscal deficits, the growing debt burden and looming increases in spending associated with an ageing population,” Fitch said in a statement on Thursday, noting the US government debt is more than double the "AA" rating medians.
The non-partisan Congressional Budget Office earlier forecast US deficits to total nearly $2 trillion this year. The CBO said if its projection is accurate, then federal debt held by the public could grow up to 122 per cent by the end of 2034.
The US national debt is more than $35 trillion.
Treasury Secretary Janet Yellen told CNBC this year that the US debt load is in a “reasonable place” as long as it remains stabilised relative to the size of the US economy.
Federal Reserve chairman Jerome Powell offered a more sobering take this year, saying US government spending is moving at an unsustainable pace and it would be better for leaders to address it sooner rather than later.
Fitch said the federal government still enjoys financial flexibility because of the role of the US dollar in the world's currency reserves.
It also expects the outcome of the 2024 US election to have little effect on the country's fiscal profile.
“The outcome of the upcoming November 5, 2024 presidential and congressional elections will be important for US economic and fiscal policies,” the ratings agency said.
“However, Fitch believes the underlying fiscal position will remain largely unchanged despite the differing economic objectives, tax policies and spending priorities of Vice President Kamala Harris and former president Donald Trump.”
Fitch said revenue from Mr Trump's across-the-board tariffs proposals would be offset by a full extension of his 2017 tax plan and exemptions to social security.
It said Ms Harris's plans to increase corporate taxes from 21 per cent to 28 per cent would be offset by expanding the child tax credit.
The agency also said the “US standards of governance are also below its 'AA' rated peers”, pointing to political brinkmanship over the 2023 debt-ceiling battle and the threat of government shutdowns in Congress.
The current debt ceiling suspension runs until the end of the year.
Fitch said it believes the new administration will use extraordinary measures and that cash balance will last for a handful of months until the hypothetical date the US runs out of it.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The Bio
Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”
Holiday destination: “I like Paris very much, it’s a city very close to my heart.”
Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”
Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”
UAE currency: the story behind the money in your pockets
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Company%20Profile
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GCC-UK%20Growth
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The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
MWTC info
Tickets to the MWTC range from Dh100 and can be purchased from www.ticketmaster.ae or by calling 800 86 823 from within the UAE or 971 4 366 2289 from outside the country and all Virgin Megastores. Fans looking to attend all three days of the MWTC can avail of a special 20 percent discount on ticket prices.
Klopp at the Kop
Matches 68; Wins 35; Draws 19; Losses 14; Goals For 133; Goals Against 82
- Eighth place in Premier League in 2015/16
- Runners-up in Europa League in 2016
- Runners-up in League Cup in 2016
- Fourth place in Premier League in 2016/17
Top%2010%20most%20competitive%20economies
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Company%20profile
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Uefa Champions League last 16 draw
Juventus v Tottenham Hotspur
Basel v Manchester City
Sevilla v Manchester United
Porto v Liverpool
Real Madrid v Paris Saint-Germain
Shakhtar Donetsk v Roma
Chelsea v Barcelona
Bayern Munich v Besiktas
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Fasset%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2019%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammad%20Raafi%20Hossain%2C%20Daniel%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%242.45%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2086%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-series%20B%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Investcorp%2C%20Liberty%20City%20Ventures%2C%20Fatima%20Gobi%20Ventures%2C%20Primal%20Capital%2C%20Wealthwell%20Ventures%2C%20FHS%20Capital%2C%20VN2%20Capital%2C%20local%20family%20offices%3C%2Fp%3E%0A
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Company%20Profile
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