FINANCIAL TIMES: Standard & Poor’s has downgraded the US credit rating by one notch from triple A to AA+ in a contentious move that highlights the weakened fiscal stature of the world’s most powerful country.
It is the first downgrade of the US by a leading rating agency and could send shockwaves through markets, pushing up US bond yields at a time of economic vulnerability, and creating a long-term threat to the status of the US dollar as the world’s reserve currency.
“It’s a headline grabber that may shake Main Street confidence, but I’m confident it won’t result in higher Treasury rates,” said Jack Ablin, chief investment officer at Harris Private Bank… (more)
