News Wednesday that Fitch factored U.S. political instability — reflected in the Jan. 6, 2021, insurrection at the Capitol — into the downgrade further confused the Beltway, which was already reeling from former President Trump’s third indictment.
Treasury Secretary Janet Yellen criticized the downgrade on Wednesday as “flawed” and “entirely unwarranted.”
“Fitch’s decision is puzzling in light of the economic strength we see in the United States,” Yellen said in prepared remarks.
“[The U.S.] remains the world’s largest, most dynamic, and most innovative economy — with the strongest financial system in the world.”
Both parties criticized the downgrade — and used it as an opportunity to take aim at the other party, despite Fitch citing increasing polarization.
“We strongly disagree with this decision. The ratings model used by Fitch declined under President Trump and then improved under President Biden,” White House press secretary Karine Jean-Pierre said in a Tuesday statement.
Rep. Blaine Luetkemeyer (R-Mo.) said he had concerns about “Fitch’s history of subjective ratings” in a Wednesday statement, which he also used to accuse Democrats of “reckless” spending.
Other Republican lawmakers blamed Biden for the debt-limit negotiation they say pushed Fitch to decide the government had trouble working together.
“When Fitch specifically cited the problem of ‘last-minute’ resolutions, they may as well have noted Biden’s refusal to negotiate with Republicans for months, while insisting on even more wasteful spending,” House Ways and Means Committee Chairman Jason Smith (R-Mo.) said on Fox News on Tuesday.
The Hill’s Tobias Burns has more here.
