Fitch says final decision on a US downgrade was taken on Monday

<p>A Fitch director spoke with Reuters and offered some more colour on the downgrade decision:</p><ul><li>Fitch held meetings with the US Treasury ahead of the decision warned about decision, not about downgrade</li><li>Key areas behind decision were deterioration on fiscal and debt side, along with governance</li><li>Governance deterioration gives less confidence in govt's ability to address fiscal and debt issues</li><li>Debt ceiling debate happens every 2 years or so, may happen again in 2025</li></ul><p>It's unclear who knew exactly what and when but it's clear to me that the White House got a heads up because they were very quick to blame Jan 6 and Republicans. There was also a curious selloff in bonds yesterday before the decision and I have to wonder if those things are related.</p><p>In any case, there's nothing really new here as the reasons for the downgrade were laid out in the <a href="https://www.forexlive.com/news/fitch-downgrades-usa-long-term-credit-rating-to-aa-from-aaa-20230801/" target="_blank" rel="follow">announcement </a>itself.</p>

This article was written by Adam Button at www.forexlive.com.