(RepublicanNews.org) – The White House’s self-titled economic plan known as “Bidenomics” was dealt a major international blow on August 1st when Fitch Ratings downgraded America’s creditworthiness by an entire level from AAA to AA+. It was only the second time in history that the nation’s credit rating has been lowered.
A senior official with the Biden administration called the move “bizarre and baseless” and said that it “defied common sense.” That same official then appeared to acknowledge the existence of an economic “mess,” but said it was caused by “the last administration” and “Republicans” in Congress.
Kevin Munoz, the President’s 2024 campaign spokesman, referred to Fitch’s decision as a “Trump downgrade.” He went on to further blame “extreme MAGA” Republicans.
White House Press Secretary Karine Jean-Pierre said the downgrade “defies reality” and that Republican “extremism” continues to be a “threat to our economy.”
Secretary of the Treasury Janet Yellen called the new rating “arbitrary” and said it was “based on outdated data.” Yellen insisted throughout most of 2021 that national inflation was “transitory,” but finally conceded that she “was wrong” and “didn’t fully understand” all the economic elements in play at the time.
Many of her assertions about inflation being “transitory” were made alongside Chairman of the Fed Jerome Powell, who also described inflation with the same language. Powell was eventually forced to walk his statements back and began the first of at least 11 interest rate hikes in March of 2022. The most recent hike took place on July 26th of this year.
Fitch said their downgrade is based on the agency witnessing a “deterioration” in governing standards over the last two decades. Those standards include the oversight of loose fiscal policy and mismanagement of the national debt. Neverending “political standoffs” with “last-minute” solutions have “eroded” the agency’s “confidence.”
The only other time the U.S. credit rating has been downgraded was in 2011 during the Presidency of Barack Obama.
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