The US government shutdown crisis in the shadow of the negative credit rating’
Republicans in the US House of Representatives are considering taking a temporary measure today to prevent a government shutdown due to its negative credit rating.
This decision was taken after Moody’s rating agency downgraded the government’s credit rating outlook to negative.
According to this report, an informed source, who asked not to be named, stated that the plans considered for announcing the Budget Allocation Bill or CR are still in flux. Of course, it is not yet clear what exactly is going to be done.
Mike Johnson, the Speaker of the US House of Representatives, has held several days of talks with the Republican majority of this House about different CR options.
The Moody Institute cited polarization in Congress as a major factor in the downgrade of the government’s credit outlook and said Washington may not be able to reach an agreement on closing its growing budget deficit.
According to the report, Republicans in Congress and Democratic senators in the Senate must pass the budget bill for the new fiscal year before November 17, the deadline for the temporary budget bill to avoid a shutdown of the federal government, in order for the bill to be signed into law. American President Biden arrives, otherwise, until the representatives and senators agree to approve this bill, various departments of the government will be closed.
The U.S. government ran a $1.7 trillion deficit last year, the largest budget deficit since the end of the COVID-19 pandemic, and rising interest rates mean the cost of servicing will continue to rise.
Meanwhile, on the brink of a possible government shutdown, some Republicans have called for a clear budget bill that will be implemented by mid-January, and there are no spending cuts or conservative policymakers that Democrats oppose.
But hard-line conservatives continue to press for action to cut spending, steps to tighten border security on the U.S.-Mexico border, and address the unusual structure of the baffling deadline for various parts of the federal budget.
Many lawmakers warn that a bipartisan battle over the temporary measure could block any Congressional action to avert a government shutdown.
This is despite the fact that a few days ago, the US Treasury Secretary and the head of the Office of Management and Budget announced in their joint statement that the country’s budget deficit has increased by $320 billion to $1.7 trillion over the past year.
In fiscal year 2023, which ended on September 30, the US government budget deficit for fiscal year 2023 was recorded at $1.7 trillion, which was $320 billion more than the previous year’s deficit, the statement said.
Meanwhile, the US Department of Treasury has recently announced the country’s national debt at an unprecedented 33 trillion dollars.