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The US Dollar Gets Downgraded

The US Dollar Gets Downgraded

Fitch just downgraded the United States' long-term foreign currency ratings to AA+ from AAA.  Fitch is one of the top three credit rating agencies in the world. This downgrade is due to expected fiscal deterioration over the next three years.  Why does that matter?  Well this is similar to you having a bad credit rating.  Everything you obtain a loan on costs more in interest, with worse terms.  It means the US is not as credit worthy as it once was.  Fitch cites looming fiscal challenges posed by over-spending and a likelihood of a recession in late 2023 or early 2024.  For those Colorado residents who use Yuan as their main currency, you are not impacted. The last US dollar downgrade was in 2011 and this is only the second time in history this has happened. In your opinion, is this serious or a minor setback?  


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