The question now on everyone’s mind is whether the 2% long-term inflation rate target is still valid and what if that rate is higher. — Bloomberg
FOLLOWING the cut in the long-term foreign-currency issuer default rating to AA+ from AAA by Fitch Ratings on Aug 1, 2023, the US fixed-income yield curve has steepened considerably with notable movement on the long-end.
According to Fitch Ratings, the downgrade of the US credit rating was driven by the expected fiscal deterioration over the next three years and a high and growing general government debt burden.
