US public debt crisis - government's financial management capability in doubt

Raising the debt ceiling does not thoroughly resolve the burden of US public debt on the economy. The US government's irresponsible fiscal policy over the past 2 years has caused the budget deficit for the period T10/2022 - T6/2023 to increase +170% compared to the same period last year. Meanwhile, the Fed's hawkish monetary policy has pushed US borrowing costs to the highest since 2009. 

What has to come will come, Fitch officially downgrades the US government's (credit-worthiness) from AAA to one notch lower at AA+. The world's largest economy no longer having the highest credit rating has shaken the financial markets. Can the US government control the public debt crisis and the negative market impacts like in 2011?

This week's macroeconomics section of Viet Hustler will return to the US public debt issue. Accompanying the public debt issue are Viet Hustler's analyses of the impact of Fitch downgrading the US government's credit rating on the market and US economy.

US public debt tensions