Ep. 82 - A Credit Crossroad: The Shockwaves of a Downgraded America

Would you ever have imagined a single decision by a rating agency could ripple through the entire US economy? Buckle up! In this episode, we take a deep dive into the US credit rating being downgraded by Fitch Ratings for the second time in modern history. We unveil what caused this downgrade, its potential effects on the economy, and how it may be addressed. We’ll unpack the words of two Federal Reserve Board members about why quantitative easing was necessary for 2019 and the looming national debt issue that will need to be addressed if the Fed Fund rate is raised. Discover how a rising rate impacts bond markets and credit ratings. Finally, gain insight into why the Federal Reserve has previously missed some of its marks and why they are proactively taking steps to prevent markets from unraveling.

Jump in to understand how this all plays out and what it means for you!

[00:01 - 04:40] Fitch downgrades the US credit rating: exploring the implications of too much debt

[04:41 - 08:29] The Fed raises rates despite economic uncertainty, with possible rate cuts imminent in 2024

[08:30 - 12:54] Federal Reserve signals that relief is on the way with a potential rate cut in 2024

[12:27 - 16:45] A Fed board member discusses the economic impact of Quantitative Easing and national debt

Resources Mentioned: 

• Ep.69 - 32 Going On 33: Rising National Debt at Historic Proportions
• Fitch Ratings Downgrades the US

Quotes:

"The United States has too much debt. They have way too much debt…[Fitch Ratings] also said that there is a deteriorating economic outlook and erosion of governments, basically citing the debt ceiling fiasco." - Quinton Harris

“The Federal Reserve is there to protect the markets. And if they come out and they say, ‘well, you know, we're just going to keep tightening and tightening until we get to 2%,’ they're going to go till they break something. They know it." - Quinton Harris

"So here we have another Fed board member saying that, ‘Listen, I don't know that we're through the thick and thin of this, and we may have done enough.’" - Quinton Harris

Catch us on Spotify and watch our full video episodes, join in on Q&As, and participate in polls! Do you want to grow your wealth and leadership? Connect with us on Facebook, Twitter, and Instagram.

Be sure to subscribe to us on YouTube to enjoy highlights and full video episodes.

Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/. 

Be sure to Subscribe, Share, and Leave a Review to let us know you want to keep the content coming.