The United States debt rating has been downgraded again. What impact will that have on the U.S. and the global economy?

The rating agency Fitch recently downgraded Washington’s credit rating over rising debt levels and continued budget standoffs in the U.S. Congress over federal spending. The agency also expects the U.S. to enter a recession later this year.

Joining the discussion: 

• Anthony Chan is the former chief economist for JPMorgan Chase. 
• Yan Liang is Chair Professor in Economics at Willamette University. 
• Anthony Moretti is an Associate Professor at Robert Morris University.
• John Quelch is Professor at the Herbert Business School at the University of Miami.

BREAKING: The US had its credit rating cut one step to AA+ from the top ranking of AAA by Fitch Ratings, echoing a move made more than a decade ago by S&P in 2011 https://t.co/BdV1syRZU1

— Bloomberg (@business) August 1, 2023

The U.S. credit rating has been downgraded by Fitch Ratings, which cited an expected increase in government debt over the next three years and a “steady deterioration in standards of governance” over the past two decades. https://t.co/HPgy9xrDJS

— The Associated Press (@AP) August 1, 2023