News / Americas

Credit Rating Agency Warns Washington

Capitol Hill
Capitol Hill
VOA News
A major credit rating agency is warning Washington that delays in resolving a dispute over government borrowing will prompt a "review" of the nation's credit rating.

The Fitch rating agency said it expects Congress will eventually raise the "debt ceiling," making the risk of a default on U.S. debts "extremely low."

Back in August 2011, political squabbling in Congress over raising the legal borrowing limit prompted the rival S&P agency to downgrade the U.S. credit rating one notch from its previous top level.

Fitch is making it clear it could consider a downgrade if Congressional action is stalled by renewed bickering. Fitch called the debt ceiling an "ineffective and potentially dangerous" mechanism for controlling government spending.  

Investment advisor Frank Reilly of Reilly Financial Advisors said the political fight is likely to go "down to the last minute" which has damaged consumer and investor confidence. He said the political uncertainties means businesses are reluctant to make investments and hire people.  

However, once the political squabbling is over, Reilly thinks the U.S. economy is poised to grow more quickly, an outlook that is in line with economic reports published Tuesday.

The Commerce Department said U.S. retail sales rose half-a-percent in December, which is more than first estimated. Economists watch retail sales closely because consumer demand drives most U.S. economic activity.

A survey by the Gallup organization showed Americans grew a bit less pessimistic about the economy last week, but remain concerned about financial issues.

A separate measure of inflation at the wholesale level shows prices declining slightly for the third month in a row. Relatively tame inflation means the U.S. central bank can continue its efforts to stimulate the economy by keeping interest rates at ultra-low levels.  If inflation were to rise sharply, the Federal Reserve would likely raise interest rates to cool the economy.

You May Like

US Investors Eye IPO for China's Alibaba

E-commerce giant handled 80 percent of China's online business last year, logging more Internet transactions than US-based Amazon.com and eBay combined More

Video Uneasy Calm Settles Over Israel, Gaza Strip

As cease-fire begins, Palestinians celebrate in streets; Israelis remain wary More

Video Chinese Doctors Use 3-D Spinal Implant

In treatment of a 12-year-old boy Chinese doctors used a 3-D printer and special software to create an exact replica of vertebra More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Chinese Doctors Use 3-D Spinal Implanti
X
August 27, 2014 4:53 PM
A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. VOA News reports from Kolkata.
Video

Video Northern California Quake: No Way to Know When Next One Will Hit

A magnitude 6.0 earthquake rocked northern California’s Napa Valley on Sunday. Roads twisted and water mains burst. It was the wine country’s most severe quake in 15 years, and while hospitals treated many people, no one was killed. Arash Arabasadi has more from Washington on what the future may hold for those residents living on a fault line.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.
Video

Video Ukraine: Captured Troops Proof of Russian Role in Separatist Fight

Ukrainian officials say they have captured Russian soldiers on Ukrainian territory -- the latest accusation of Moscow's involvement in the conflict in eastern Ukraine. VOA's Gabe Joselow reports from the Ukrainian side of the battle, where soldiers are convinced of Russia's role.
Video

Video Rubber May Soon Come From Dandelions

Synthetic rubber has been around for more than a century, but quality tires for cars, trucks and aircraft still need up to 40 percent or more natural rubber content. As the source of natural rubber, the rubber tree, is prone to disease and can be affected by bad weather. So scientists are looking for replacements. And as VOA’s George Putic reports, they may have found one in a ubiquitous weed.
Video

Video Jewish Life in Argentina Reflected in Yiddish Tango

Jewish people from across Europe and Russia have been immigrating to Argentina for hundreds of years. They brought with them dance music that were eventually mixed with Argentine tango. The result is Yiddish tango -- a fusion of melodies and cultural experiences that is still evolving today. Elizabeth Lee reports from the Skirball Cultural Center in Los Angeles, where one band is bringing Yiddish tango to an American audience.

AppleAndroid

More Americas News

Hurricane Cristobal Kills Four, Moves Toward Bermuda

Storm is not expected to threaten US, but could cause deadly surf and rip currents from Florida to North Carolina
More

Peru's Congress Narrowly OKs Humala's New Cabinet on 3rd Vote

Lawmakers ratify president's embattled cabinet after ruling party offers to suspend rule requiring independent workers to pay into a pension program
More

Brazil's Deadly Prison Riot Ends

Officials say two inmates were beheaded during the Cascavel riot; two others were thrown to their deaths from the roof, and police are investigating how a fifth inmate died
More

Amid Slowdown, Chileans Adjust to New Economic Reality

Most economists now predict overall growth in country's economy of between 2.0 and 2.5 percent this year, down from 4.1 percent in 2013
More

Video Yiddish Tango Reflects Jewish Life in Argentina

Jewish people from Europe, Russia who have emigrated to Argentina for hundreds of years have fused klezmer and Argentine tango, creating Yiddish tango
More

Magnitude 6.9 Earthquake Hits Peru

Peru's civil defense institute said there were no immediate reports of injuries or serious damage
More