Policy Backgrounders
Our Privacy Policy has been updated! The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you acknowledge our privacy policy and consent to the use of cookies. 

Navigating the Economic Storm

Policy Backgrounders

CED’s Policy Backgrounders provide timely insights on prominent business and economic policy issues facing the nation.

Fitch Downgrades US Rating Amid Fiscal and Governance Concerns

August 03, 2023

Fitch Ratings downgraded the credit rating of US debt obligations this week after warning of a potential
downgrade during the debt ceiling negotiations that were resolved in June.

  • Fitch cited a worsening US fiscal outlook over the next three years in addition to deteriorating standards of governance over the past two decades that impair the ability of the US to take action on fiscal and debt matters.
  • Fitch forecasts the US publicly held debt to GDP ratio to rise to 118 percent by 2025, from 98.2 percent today and from 79.4 percent pre-pandemic. That compares to 39.3 percent for the median AAA-rated peer country. Over the first 9 months of the current fiscal year, the federal deficit hit $1.39 trillion—more than 170 percent higher than the same period in FY 2022.
  • Fitch noted that the US, unlike most peers, does not have a medium-term fiscal framework and cited addressing tax revenues, Social Security, and healthcare spending—items that have largely remained off the table as Congress negotiated the debt ceiling and FY 2024 appropriations bills. Disagreement between the Senate and House continues to raise the likelihood of at least a partial government shutdown as the October 1 fiscal year deadline approaches.

Download Article

Authors

Dr. Lori Esposito Murray

Dr. Lori Esposito Murray

Senior Fellow for National Security & Managing Director of CEO Programs

Read Bio

Mitchell Barnes

Mitchell Barnes

Economist

Read Bio

search Icon
Newest First
search Icon
search Icon
filterMobImage

Publications

Webcasts, Podcasts and Videos

Window on China: Outlook for 2024

January 25, 2024 09:00 AM CET (Brussels), 04:00 PM SGT (Singapore)

China's evolving data security regulatory framework

September 14, 2023 03:00 AM ET (New York), 09:00 AM CET (Brussels), 03:00 PM SGT (Singapore)

Press Releases / In the News

BRIEF

Inflation Heads in Wrong Direction for Fed

April 26, 2024

BRIEF

US Economic Growth Cooled in Q1 2024

April 25, 2024

PRESS RELEASE

US Leading Economic Index® (LEI) Fell in March

April 18, 2024

BRIEF

March retail sales rose, but real Q1 spending was lackluster

April 15, 2024

BRIEF

CPI remained stubbornly elevated in March

April 10, 2024

BRIEF

Employment Report Poses Some Risk to Fed Cut Timing

April 05, 2024

✕
hubCircleImage