Florida Governor DeSantis Criticizes President Biden for Downgraded U.S. Credit Rating, Highlights Florida's Rating as a Model for the Nation
Florida Governor Ron DeSantis criticized President Joe Biden's economic policies, pointing out that they have led to a downgrade in the Unit...
Florida Governor Ron DeSantis criticizes President Biden's economic policies
Florida Governor Ron DeSantis criticized President Joe Biden's economic policies, pointing out that they have led to a downgrade in the United States' credit rating by Fitch Ratings. The country's Long-Term Foreign-Currency Issuer Default Rating was lowered from "AAA" to "AA+," which could result in higher interest rates and borrowing costs. This downgrade comes after the federal government narrowly avoided a debt default earlier in the summer and ahead of a potential government shutdown if Congress fails to agree on spending for the next fiscal year.
DeSantis attributes credit rating downgrade to frivolous spending
Florida Governor Ron DeSantis responded to Fitch Ratings' downgrade of the nation's credit rating from AAA to AA+ by attributing it to frivolous spending and increasing national debt due to programs like the CARES and 'Inflation Reduction' Acts. He highlighted that Florida's AAA rating serves as a model for fiscal responsibility.
Florida's financial success and AAA credit rating
The article highlights the financial success of Florida, stating that the state has run large budget surpluses and paid off a significant portion of its debt. The article also mentions the recent downgrade of the nation's credit rating by FitchRatings from AAA to AA+, attributing it to frivolous spending and increasing national debt from programs like the CARES and "Inflation Reduction" Acts. It emphasizes that Florida's AAA rating remains intact and serves as a model for the nation.
Fitch explains reasons for credit rating downgrade
In a recent social media post, Florida Governor Ron DeSantis shared news about the downgrade of U.S. Debt by Fitch, a credit rating agency. Former President Donald Trump also commented on the downgrade, expressing surprise. Fitch explained that the downgrade was due to the expected decline in fiscal conditions over the next three years, the increasing burden of government debt, and the weakening of governance compared to other highly rated countries. Fitch specifically mentioned repeated debt limit standoffs and last-minute resolutions as contributing factors to the downgrade.
Fitch highlights decline in governance standards
Fitch, a credit rating agency, has stated that there has been a decline in governance standards over the past two decades, particularly in fiscal and debt matters. This assessment comes despite a bipartisan agreement made in June to suspend the debt limit until January 2025.
Concerns about potential credit rating downgrade
The article discusses the possibility of the United States facing another credit rating downgrade, similar to the one that occurred in 2011. The downgrade in 2011 was due to political brinkmanship and the increasing debt burden. The US long-term rating was lowered from "AAA" to "AA+" by S&P. The article highlights that the US is currently at the "AA+" rating and raises concerns about the potential consequences if another downgrade were to happen.
Republicans argue downgrade is a result of excessive spending
Fitch Ratings has downgraded the U.S. sovereign debt to 'AA+' following years of increasing government budget numbers and a doubling of debt since 2011 to over $32 trillion. Republicans argue that this downgrade is a result of excessive spending and borrowing. Representative David Schweikert from Arizona stated that the downgrade is a warning sign that the government needs to address its fiscal issues before it's too late.