
After Congress grazed the edge of default in last spring’s debt ceiling negotiations, Fitch Ratings downgraded its U.S. debt rating from its top AAA rating to AA+ in a controversial move due to “a steady deterioration in standards of governance.”
With the potential to affect everything from mortgage rates to international contracts, the demotion stoked new fears of a recession that would also change the dynamics of the 2024 U.S. election.