On August 1, 2023, Fitch Ratings downgraded the U.S. government’s credit rating from AAA to AA+, citing an “erosion of governance.” Pointing to growing federal debt as well as frequent political squabbles regarding our nation’s debt ceiling, Fitch’s downgrade is the first of its kind since Standard & Poor’s downgrade of the U.S. credit rating in 2011.
“In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025. The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management. In addition, the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process.”
—Fitch Ratings, August 1, 2023
How might this downgrade impact financial markets, what does it mean for our economy as a whole, and how can consumers protect their portfolios?
Click on the video link below for exclusive Executive Insights on this topic from Philip N. Diehl, 35th Director of the United States Mint and President of U.S. Money Reserve.
Related headlines from around the web:
- The Hill: “Fitch’s downgrade of U.S. debt wasn’t a mistake—it was long overdue”
- AP News: “Fitch downgrades U.S. credit rating, citing mounting debt and political divisions”
- Reuters: “Gold gains on Fed pause hopes after U.S. inflation data”
Protect your portfolio with precious metals today.
Gold has historically been used as a hedge against economic uncertainty and market turbulence. As paper-based assets like stocks continue to experience volatility and inflation continues to deflate the dollar’s purchasing power, now may be the perfect time to add wealth protection to your portfolio in the form of physical gold.
Watch U.S. Money Reserve’s “Market Insider” each week for more economic insights. Nothing herein should be considered as portfolio or retirement advice as U.S. Money Reserve (“USMR”) cannot and does not offer financial advice. Clients should consult a financial advisor for specific advice. This commentary is provided by USMR for informational purposes only and is provided on an “as is” basis without any warranty of any kind, whether express or implied. Your use of the information provided in this commentary is entirely at your own risk. In no event will USMR be held liable for any indirect, special, incidental, or consequential damages arising from the use of information contained in this commentary.
