Biden has suggested invoking the 14th amendment
The debt ceiling debate in spring led to a downgrade, with the Committee for a Responsible Federal Budget praising the pact but recognizing signs of backsliding. The White House has announced a debt limit working group to study the issue. Biden has suggested invoking the 14th amendment as a risky option. Fiscal deadlock is more…
Analytics chief criticized Fitch’s move on lowering US credit rating
Fitch and S&P Global Ratings have lowered the US credit rating, two months after a debt-ceiling deal prevented government default. Moody’s Analytics chief economist Mark Zandi criticized Fitch’s move, calling it “off-base.” The White House and others reacted strongly, noting that Fitch’s quantitative ratings model for US budgetary health has improved since Biden took office.…
The Biden administration rejected Fitch rating
Fitch reduced the US government’s top credit rating from AAA to AA+, causing fury and a partisan blame game. The Biden administration rejected the proposal, calling it “arbitrary and based on outdated data.” The ratings agency emphasized long-term fiscal issues Washington needs to address. The American Enterprise Institute’s Michael Strain criticized Fitch’s timing, pointing to…
Fitch Rating the US country at AA+
Fitch Ratings downgraded the US economy to ‘AA+’ after S&P Global downgraded national debt in 2011. The downgrade was attributed to budgetary deterioration and frequent debt ceiling talks. Investors reacted by avoiding riskier assets, with Treasury rates declining 3 basis points and Nasdaq futures sank 0.7%. The dollar rose 0.2% after falling after the downgrade.…
Bankruptcy is haunting many Western Global airlines
Western Global, a Florida-based cargo airline, may declare bankruptcy this week after Moody’s and Fitch downgraded the company due to concerns it would fail on its large debt. The company has experienced revenue decline and lost Amazon in January, operating an aging fleet of Boeing 747-400 and MD-11 freighters. Western Global’s debtor-in-possession financing was provided…
US oil signaling a possible correction
Oil has seen its greatest monthly rise since early 2022, with West Texas Intermediate remained below $82. Demand outpaces supply, driving prices to a three-month high. US inflation is dropping, raising hopes for a recession. Crude’s 14-day relative-strength index has surged to near 70, suggesting the market may be overbought and correct. The OPEC+ Joint…
Japan’s inflation is coming from goods prices, not wages
The Bank of Japan (BOJ) warned of rising inflationary pressures as Japanese corporations raise prices and pay at unprecedented rates. The central bank noted that Japan’s inflation is driven by goods prices rather than wage pressures, unlike the US and Europe. The BOJ’s decision to adjust its bond yield control policy and allow long-term interest…
Japan’s unemployment rate fell to 2.5%
Japan’s jobless rate decreased in June, indicating wage growth and potential for manageable inflation. Unemployment fell to 2.5%, the lowest since January, and 190,000 more people worked. Labor demand remains stable, with the jobs-to-applicants ratio dropping to 1.30. The jobs-to-applicants ratio shows 130 jobs offered per 100 applicants in June, with lodging, restaurant, and education…