U.S. to Congress: Fitch move shows must up debt limit

WASHINGTON, June 8 Wed Jun 8, 2011 11:21am EDT

Related Topics

WASHINGTON, June 8 (Reuters) - The U.S. Treasury said credit agency Fitch Ratings' warning about U.S. debt on Wednesday was "another stark reminder" of the need for Congress to act quickly to raise the debt limit on how much the country can borrow.

Fitch Ratings warned the country would not be able to maintain its top notch credit rating if it suffered a technical default on its debt.

"Today's report is another stark reminder of the need to act decisively and expeditiously to remove uncertainty in the market by raising the debt limit so the U.S. can meet its obligations," said Mary Miller, Treasury's assistant secretary for financial markets, in a statement.

Fitch is the third major rating agency to sound alarm bells over the debt ceiling and the $1.4 trillion deficit. Last week Moody's Investors said that the slow moving deficit talks had increased the odds of a short-lived U.S. default.

(Reporting by Rachelle Younglai)


After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.