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U.S. Credit Rating Gets Another Downgrade

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  • Description

    FBN's Liz MacDonald on Egan-Jones' downgrade of the U.S. credit rating.

  • Duration 2:01
  • Date

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And about.

All the hits just keep on common for the second time in nine months America's credit rating.

Has been -- this time by Egan Jones Elizabeth -- and in his -- -- -- -- on this.

South of -- up but the bigger names.

Are gonna follow the lead we got from -- Jones -- is -- Jones is late to the part.

Domestically question -- because I just got off the -- she -- shining a little while ago and got breaking news for you.

That I'm gonna give in a little bit but Sean Egan is saying essentially that look Egan Jones.

Was first out of the box and not really warn about the US.

Credit rating.

-- it was first to downgrade.

The US credit rating it did so in July 2011 before S&P.

So whether or not a recipe follows is there is a key question.

Even Jones downgrade in the US to double -- S&P still has the US credit rating.

A double A plus and here's his concern is telling fox this is.

There's deep concern over the absence of any plan and Washington DC.

To rein in the deficit he's very concerned -- -- about the failure of the super -- committee.

Which -- came up with one and a half trillion dollars in cuts over a ten year period.

He say a hundred billion dollars a year it's not enough.

He goes on to say we talked about how the Federal Reserve is someone stepping into the market to buy US treasuries buying get this Cheryl.

Of almost two thirds of treasury debt issuance last year he said the Fed reserve's treasury buying.

Is not normal policy.

It could ultimately lead to significantly.

Higher inflation is also -- -- that he is a concern that the US said debt to GDP ratio.

Is going to be just shy of Italy by the end of next year at a 112%.

Debt to GDP ratio -- -- -- All right -- -- great reporting but I do have to ask one favor from yes.

Sure you can't keep me hang it on breaking news a mean have we next I mean I'm -- -- other words Franken is I don't know I didn't see you -- for your hair yeah her.

I know thank you Elizabeth Charlotte -- the breaking news coming out of the news of today on the Friday lot of.

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