US Credit Rating in Jeopardy Amid Debt Ceiling Negotiations

Credit rating agency DBRS Morningstar has put the United States on review for a downgrade due to the risk of Congress failing to increase or suspend the debt ceiling in a timely manner. This follows a similar warning from Fitch. Negotiators for President Joe Biden and top congressional Republican Kevin McCarthy held productive talks on Wednesday to try to reach a deal to raise the $31.4tn debt ceiling, but a June 1 deadline indicated by the Treasury means investor concerns are mounting that there may not be sufficient time to finalise an agreement and avoid a catastrophic default.