Main Topic: The U.S. credit rating downgrade by Fitch and its implications for taxpayers and consumers.
Key Points:
1. The immediate impact on taxpayers and consumers is minimal, as borrowing costs and mortgage rates are not expected to be significantly affected.
2. The credit downgrade serves as a warning about the U.S. government's long-term fiscal health and the risks associated with political conflicts over the debt ceiling.
3. While investors currently view U.S. Treasuries as a safe investment, the downgrade highlights the need for the U.S. to address its fiscal problems and take steps to ensure it can meet its obligations in the future.
Goldman Sachs analysts predict that the U.S. government is "more likely than not" to shut down later this year due to spending disagreements, which could temporarily impact economic growth by reducing it by 0.15-0.2 percentage points per week, with past shutdowns having minimal impact on equity markets.
Moody's has downgraded the outlook for China's property sector to negative, citing economic challenges that will likely lead to a decline in sales despite government support.
The potential government shutdown threatens to deprive the Federal Reserve of crucial data on the labor market and inflation, which could hinder its ability to make informed decisions about the economy and interest rates.
Senate Minority Leader Mitch McConnell warns House Republicans that a government shutdown would be detrimental to the Republican Party both politically and in terms of policy change.
The White House warns that a government shutdown at the end of the month could have damaging consequences for the economy, national security, and the American public.
Congress faces the risk of a government shutdown as Republican infighting and dysfunction threaten to derail funding, highlighting the long-running chaos and dysfunction in American politics.
The US government faces a potential shutdown if Congress fails to agree on funding past September 30, which would be the first shutdown since December 2018 and could result in a longer standoff between parties.
Millions of federal employees and military personnel face the prospect of a government shutdown, which would result in financial hardships for American families, disruptions in services, and potential harm to the economy.
Investors should not be overly worried about the potential government shutdown's impact on the market, as historical trends indicate that any weakness will likely be a buying opportunity from a short-term trading perspective.
The impending federal shutdown, combined with other economic challenges such as rising gas prices, student loan payments, and reduced pandemic savings, is expected to strain American households and potentially weaken economic growth in the last quarter of the year.
A potential government shutdown in Washington could have far-reaching consequences, causing financial losses for millions of people, disrupting medical research and food access, delaying regulatory efforts, and hampering the Biden administration's agenda on energy, climate, and infrastructure.
President Biden warns of the potential consequences of a government shutdown, urging Republicans in Congress to take action to prevent it.
Investors are concerned about the possibility of a US interest rate hike and a government shutdown, which could impact the US credit rating and push the world's top economy into recession.
The possibility of a government shutdown in the U.S. could have negative implications for the crypto industry's regulatory progress and projects, similar to the effects seen in the previous shutdown in 2018 and 2019, with delays in approvals and a withdrawal of a bitcoin ETF application.
The U.S. is on the verge of a government shutdown as Congress debates spending levels and aid to Ukraine, which could potentially affect government operations and federal workers' paychecks.
The impending government shutdown may have an impact on the financial markets, according to Kristina Hooper, Chief Global Market Strategist at Invesco.
A government shutdown is unlikely to have a negative impact on the stock market, as historical data shows that shutdowns have not affected markets in the past.
A government shutdown would severely impact the U.S. Securities and Exchange Commission's ability to approve IPOs and respond to market turmoil, according to its chair, Gary Gensler.
The possibility of a government shutdown looms as Congress struggles to agree on federal spending bills, potentially affecting federal and contract workers, restricting services, and impacting the DC region, Maryland, and Virginia.
The White House has warned that the partial shutdown of the US government could hinder almost 2,000 long-term disaster recovery projects, impacting communities across the country.
A government shutdown would have widespread effects on everyday Americans, including reduced economic growth, closure of national parks and museums, disruptions in air travel and student loans, delays in tax and loan processing, a "data blackout" for economic statistics, and complications in law enforcement, military services, consumer product inspections, and social safety net programs, among others.
U.S. Treasury Secretary Janet Yellen warns that a potential government shutdown would harm economic progress, impacting key programs for small businesses and children and delaying infrastructure improvements.
The federal government is at risk of shutting down unless a temporary spending bill can be agreed upon by a small group of Republican representatives; in the event of a shutdown, certain factors such as food aid, economic data, and federal employee salaries would be affected, while others including U.S. stocks, Social Security checks, and the U.S. Postal Service would not be impacted.
A potential government shutdown in the US may lead to a delay or absence of the September consumer-price index report, which would complicate decisions for financial markets and the Federal Reserve.
The ousting of House Speaker McCarthy and the ongoing political polarization in Washington could lead to a credit downgrade of US debt by Moody's, which would have significant market impacts and increase the risk of a recession.
Rating agency Fitch warns about a possible government shutdown after the ousting of U.S. House Speaker Kevin McCarthy, but states that it would not impact the country's sovereign rating as the governance issues are already factored in.
Moody's downgrades Egypt's credit rating to 'Caa1' from 'B3' due to worsening debt affordability caused by an economic crisis, inflation, and foreign currency shortage.
Moody's downgrade of Egypt's credit rating to junk territory has caused the country's sovereign dollar bonds to plummet, exacerbating its economic crisis and adding pressure ahead of the upcoming elections in December.
Moody's Investors Service has warned that it could downgrade Israel's credit rating due to the severity of the military conflict with Hamas, which could lead to increased costs for borrowing as the country faces a prolonged war.
Moody's credit rating agency has revised its negative outlook on the UK, citing the restoration of policy predictability and the country's more conciliatory approach to EU trade, following last year's mini-Budget and Chancellor Jeremy Hunt's decision to reverse most of his predecessor's tax cuts.