Impact of the United States’ Credit Rating Plunge

A lower credit rating makes the United States government to charge higher interest rates. It naturally spreads to other countries’ securities, including Indonesia.

Yopie Hidayat

August 7, 2023

THE United States has lost another vital emblem of its global financial dominance. Fitch Ratings downgraded the United States’ credit rating from AAA to AA+ on August 1. Fitch argues that bipartisan brinkmanship in using the US debt ceiling as political bargaining chips has damaged the country’s reputation and exposed its poor fiscal management.

The political strife between the Republican Party and the Democratic Party

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