The credit rating agency Fitch Ratings has lowered the long-term debt solvency rating of the United States one notch, which now stands at ‘AA+’ from ‘AAA’ with a stable outlook, as a reflection of the expected fiscal deterioration over the next few three years and the high and growing debt burden of the Government.

Likewise, the risk rating agency has explained that its decision also takes into account “the erosion of governance” in relation to other sovereign issuers rated ‘AA’ and ‘AAA’ during the last two decades, as has been manifested in repeated confrontations about debt limits and last-minute resolutions.

In this way, Fitch has fulfilled its threat to lower the rating of the world’s leading economy, which it had placed on negative watch last May during the latest political crisis, in order to suspend the debt ceiling. Following the decision announced by Fitch Ratings, only Moody’s maintains the highest solvency grade for the long-term debt of the United States, after S&P Global downgraded the country’s rating in 2011.

In its analysis, Fitch has pointed to the fiscal challenges facing the United States over the next decade, warning that higher interest rates and rising debt stocks will increase the interest service burden, while an aging population and rising health care costs will increase spending in the absence of fiscal policy reforms.

In addition, the agency has warned that the 2017 tax cuts will expire in 2025, although there is likely to be political pressure to make them permanent, as has been the case in the past, resulting in higher deficit projections.

On the other hand, the risk rating agency expects that the US economy will enter a recession at the end of 2023 and the beginning of next year as a result of stricter credit conditions, the weakening of business investment and the slowdown in consumption. The agency expects US real GDP annual growth to slow to 1.2 % this year from 2.1 % in 2022 and growth to just 0.5 % in 2024.

Fitch’s decision is considered arbitrary

For her part, the US Treasury Secretary, Janet Yellen, has criticized Fitch’s decision to lower the US rating. “I strongly disagree with Fitch Ratings’ decision. The Fitch Ratings change announced today is arbitrary and based on outdated data,” Yellen said.

In any case, for Yellen, Fitch’s decision “does not change” the view of Americans, investors and people around the world about US Treasury-issued debt as the world’s preeminent safe and liquid asset. “The US economy remains the largest and most dynamic economy in the world, with the deepest and most liquid financial markets in the world,” he stressed.

Source: dpa

(Reference image source: Lukas Zischke, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Fitch strips the US of its “AAA” rating apareció primero en Bitfinance.

The United States Treasury Secretary, Janet Yellen, indicated this Sunday in India during her meeting with the G20, that the country’s economy is showing a good change, so she does not believe that they will enter a recession.

Speaking to Bloomberg TV, Yellen said the slowdown in inflation is on the right track, adding: “For the United States, growth has slowed, but our job market is still pretty strong. I don’t expect a recession.”

Taking into account the most recent inflation data, the official considers that the scenario is encouraging, beyond China’s concern regarding US tariffs last month on his visit to the US.

Yellen hinted that the United States could issue a new decree “restricting outbound investment in China, but stressed that the measures would focus strictly on three sectors: semiconductors, quantum computing and artificial intelligence.”

What is sought is greater control, through strict notification procedures, but not blanket controls that hinder US investment in China.

M.Pino

Source: finanzasdigital

(Reference image source: Aditya Vyas, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Yellen does not believe there is a recession in the United States apareció primero en Bitfinance.

The United States Secretary of the Treasury, Janet Yellen, is considering expanding the protection of depositors from other small entities under conditions similar to those of the intervention of Silicon Valley Bank (SVB) and Signature Bank, when the guarantee was increased to 100 % of amounts deposited, against the limit of $250,000.

“The steps we took were not focused on helping specific banks or classes of banks. Our intervention was necessary to protect the American banking system in general,” Yellen said in remarks prepared for her address to the American Bankers Association.

In this sense, for the head of the United States Treasury, “similar actions could be justified if the smallest entities suffer deposit leaks that pose a risk of contagion”.

The SVB was intervened on March 10 by the US financial authorities and that weekend the Treasury Department ordered the Federal Deposit Insurance Corporation (FDIC) to guarantee the funds of the entity’s clients even above the insured limit of $250,000.

K. Tovar

Source: Gestion

(Reference image source: file)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada The US will extend protection to banks in the face of the financial situation apareció primero en Bitfinance.

US Treasury Secretary Janet Yellen highlighted the improvement in the economic outlook, underscoring the resilience shown by the US economy.

“The challenges we face are real and the future is always uncertain. But the outlook has improved since we met in the fall,” Yellen told a press conference ahead of the G20 finance ministers and central bank governors meeting. in Bangalore, India.

In this sense, the head of the United States Treasury highlighted in her comments the resilience shown by the US economy, where inflation is moderating, while the labor market remains strong.

“Progress in the global macroeconomy is the result of collective work,” Yellen added, referring to the importance of forums like the G20 when it comes to strengthening international cooperation.

In this way, she recalled the vision shared in last year’s meetings on the need to combat high inflation and remain attentive to the risks of contagion derived from the tightening of financing conditions in the main economies.

Source: dpa

(Reference image source: file)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Yellen assures that the US economic outlook has improved apareció primero en Bitfinance.

The secretary of the United States Department of the Treasury, Janet Yellen, is confident that the inflation rate will be “much lower” by the end of next year, while she has not ruled out the risk of a double-dip recession in the world’s leading economy.

“There is a risk of a recession,” she said during an interview on CBS’s “60 Minutes” program, where she argued that she does not expect an economic contraction to be necessary to reduce inflationary pressures.

In this sense, Yellen said that a substantial slowdown in growth is taking place, after the strong recovery after the pandemic, with a healthy labor market, households and companies in good position and a banking system in good health.

In this way, she pointed out that shipping costs have been reduced and delivery delays have been shortened, while fuel prices are falling. “I think we will see a substantial reduction in inflation in the next year.”

Also, despite the uncertainty, Yellen expressed high hopes that the job market remains healthy enough for people to be comfortable with their finances and their personal economic situation.

On the other hand, the US Treasury Secretary warned that Washington is willing to continue sending military aid to Ukraine “for as long as it is necessary.”

K.Tovar

Source: DF

(Photo: Image by Andrew Harnik, via AP)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Inflation in the US will be lower in 2023 apareció primero en Bitfinance.

The Russian government has threatened to cut off oil supplies to those countries that decide to put a cap on the price of Russian crude, an idea that the United States plans to bring to the G7 this Friday.

“If they impose restrictions on prices, we will simply not supply oil and oil products to companies or countries that impose restrictions”, said Russian Deputy Prime Minister Alexander Novak.

The member of the Russian Executive considers that “interference” in the market mechanisms of the oil industry only destabilizes it. According to Novak, this will make European and US consumers, who are already paying a high price for crude, pay even higher prices.

Treasury Secretary Janet Yellen was optimistic after a meeting with her British counterpart, Nadim Zahawi, about the progress made by the G7 negotiating teams in agreeing a price cap on oil from Russia.

Yellen believes that this measure will reduce the income that Putin “needs” to continue the war in Ukraine while reducing the pressure of energy prices on citizens.

K. Tovar

Click the link to subscribe for free to our news and media group on Telegram: https://t.me/G_ELSUMARIO_News

Source: Euronews

La entrada Russia threatens to cut oil supply apareció primero en Bitfinance.

US Treasury Secretary Janet Yellen explained that investing in cryptocurrencies is a “very risky option” to include in the retirement plans of average American savers, and it would be reasonable for Congress to face the danger.

“It is not something that I would recommend to most people who are saving for retirement, (…) For me it is a very risky investment.”

The Secretary of the Treasury considers it “reasonable” that Congress regulates the type of assets that could be included in “retirement vehicles with tax benefits, such as 401 (k) plans (…)” I am not saying that I recommend it, but I think it would be reasonable,” she said.

Yellen made the remarks in response to a question about Fidelity Investments’ initiative to add a crypto option to the pension plans it manages.

Bitcoin as an option as a store of value

Last April, the American company specialized in asset management and pension funds Fidelity Investments announced its intention to offer 401 (k) with Bitcoin. However, savings programs in the United States have a fairly strict regulation, which is why the position established by the Secretary of the Treasury, nor that assumed by the Department of Labor, is not surprising.

For her part, Senator Cynthia Lummis believes that the position taken by the Department of Labor could be wrong. In her opinion, an “intelligent investment strategy combines assets that generate short-term profits and assets that can prevent the funds from depreciating.” In her words, Bitcoin is a very good option to avoid the depreciation of money. “BTC really shines as a store of value,” the senator indicated.

M. Rodríguez

Click the link to subscribe to our news and media group on Telegram: https://t.me/G_ELSUMARIO_Noticias

Source: buahmerahpapua.web.id

La entrada Retirement plans in crypto represent a risk apareció primero en Bitfinance.

Joe Biden, president of the United States, met Jerome Powell, president of the central bank, to discuss issues related to the economy and has promised to respect the autonomy and independence of the Federal Reserve in managing and controlling inflation.

The meeting was held in the framework of the beginning of the second term of the Fed president, in which Biden confirmed that the Federal Reserve “has the primary responsibility for controlling inflation. (…) My predecessor demoted the Fed and previous presidents have tried to influence its decisions inappropriately during periods of high inflation. I will not do it.”

The US authorities have to deal with different problems such as firearms control, abortion, immigration, the war between Russia and Ukraine. But the problem that generates the greatest concern is the increase in the prices of products and services, it is to say inflation.

President Biden’s plan to deal with inflation means to allow the Fed to do its job. “The fight against inflation begins with a simple proposal: respect the Fed, respect the independence of the Fed, which I have done and will continue to do”, the American president pointed out.

The president promises to give those responsible for the central bank “the space they need to do their job, not interfere in their critically important work, which has a double responsibility: one for full employment, two for stable prices.”

Inflation, a global problem

The inflation problem has become a global phenomenon. It has increased markedly in the United States and has registered historical maximums in the entire European zone, and in Latin America it also increases significantly. “It actually rises throughout the world.”

The difficulties that have arisen throughout the process or in the supply chain, the increase in the different raw materials, particularly energy sources such as oil; the cost of food, and financial and monetary policies are indicators that have impacted significantly on global inflation.

Treasury Secretary Janet Yellen, who was also present at the meeting, told CNN that she was wrong to underestimate the growth of inflation. “There have been large and unforeseen shocks to the economy that have sent food and energy prices skyrocketing and also supply bottlenecks that have severely affected our economy and that I, at the time, did not fully understand, but that we now recognize,” she indicated.

M. Rodríguez

Click the link to subscribe to our news and media group on Telegram: https://t.me/G_ELSUMARIO_Noticias

Source: elpais.com

La entrada Biden will respect the autonomy of the Federal Reserve apareció primero en Bitfinance.

G20 leaders ratified at the Rome summit their support for the minimum tax on multinationals of 15 % after years of talks, the White House said in a statement.

“All leaders supported a global minimum tax. The president of the United States, Joe Biden, highlighted the importance of this historic agreement during his intervention,” reads part of the statement from the US government.

Biden further stated that “the international community, thanks to the agreement on this global minimum tax, will support people by ensuring that companies will contribute by paying their fair share.” “This is more than just a tax deal, it is diplomacy that is reshaping our global economy and delivering benefits to our people.”

The Secretary of the Treasury, Janet Yellen, stressed that this agreement, proposed by Washington, is reached at a critical moment” for the world economy and that “it will put an end to the damaging race to reduce corporate tax.

She added in a message posted on Twitter that the agreement will benefit US workers even if the country’s large multinationals have to pay more taxes.

The pact had already gained enormous support in July and October when the G20 economy and finance ministers reached a framework agreement, as happened later in the framework of the Organization for Economic Cooperation and Development (OECD).

The agreement has two fundamental objectives: to prevent large multinationals from diverting their profits to countries considered practically as tax havens and to address the digital nature of international trade by taxing companies in the places where they operate, rather than in those countries where they declare its benefits.

The United States and five European governments contributed just over a week ago to cement this ratification by allowing European countries to maintain their taxes on digital services to giants like Facebook and Amazon.

K. Tovar

Source: Economista

La entrada G20 ratifies the 15 % tax on multinationals apareció primero en Bitfinance.

“I do not think we are going to lose control of inflation,” said the Secretary of the Treasury of the United States, Janet Yellen, although she recognizes that the prices of products and services will continue to increase until the middle of next 2022.

Yellen confessed that the annual inflation rate will remain high due to the global supply problems that occurred as a result of the Covid-19 pandemic. However, she hopes that for the second half of next year sanitary conditions will improve and economic activity will rebound.

“As we move forward with the pandemic, I hope these bottlenecks will disapear. And Americans will return to the workforce as conditions improve.”

The prices of products and services in the United States have been experiencing a monthly increase and in early 2021 the Federal Reserve (Fed) of the United States indicated that these increases would be temporary, but now admits that they could last longer than planned.

Last September, the US registered an inflation rate in the order of 5.4 %, which represents quite high figures that had not been reported in more than a decade in the country.

Some of the factors that impact the rise in inflation are: “the shortage of labor, which continues to incite managers to the rise and disruptions in the global supply networks, which cause delays in the delivery of materials and products.”

Due to the expense it represents for consumers, equivalent to almost two thirds of economic activity, the current “government is providing generous distributions of money” since March 2020.

M. Rodríguez

Source: bancaynegocios

La entrada The US Treasury will keep the control of inflation apareció primero en Bitfinance.