The US Treasury believes Standard and Poor (S&P)'s negative outlook underestimates the ability of America’s leaders to come together to address the difficult fiscal challenges facing the nation.
S&P assumed that the US will enact ‘a comprehensive budgetary consolidation programme – combined with meaningful steps towards implementation by 2013’. S&P affirmed the AAA rating of the US, but emphasised the importance of timely bipartisan cooperation and action on fiscal reform. In addition, Moody’s commented that ‘we view the changed parameters of the debate, with broadly similar goals as to government debt levels, as a turning point that is positive for the long-term fiscal position of the US federal government.’
The US Department of the Treasury today released the following statement from Assistant Secretary for Financial Markets, Mary Miller, on announcements by Standard and Poor’s (S&P) and Moody’s:
“As the President said last week, addressing the current fiscal situation is well within our capacity as a country. He has initiated a bipartisan process that will allow us to make progress on a balanced approach to restoring fiscal responsibility. The US economy is strengthening as it emerges from the recent recession. Both political parties now agree that it is time to begin bringing down deficits as a share of GDP.
© US Treasury
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