Fitch has confirmed the U.S. credit rating as "AA+".

Fitch has confirmed the United States' credit rating at 'AA+', maintaining its stable outlook, according to the ratings agency. The decision highlights the size of the U.S. economy, high per capita income, and the dollar's role as the world’s leading reserve currency. Despite challenges such as higher tariffs, reduced government spending, stricter border controls, and increased political uncertainty, the American economy has shown resilience and flexibility in absorbing shocks. The agency noted that while the U.S. economy demonstrated strength in withstanding these pressures, it expects growth to slow this year to 1.9 percent, driven by weaker labor demand and slower job creation. However, economic expansion is projected to pick up slightly in 2025, with GDP growth reaching 2.8 percent. Inflation remains a concern, with an average forecast of 3.4 percent this year, higher than the median rate among countries with an 'AA' rating. Year-on-year inflation rose by 3.4 percent in July, according to calculations by the Department of Labor, slightly lower than earlier in the summer. The Federal Reserve defines stable consumer price growth at a two percent inflation rate. The impact of tariffs on inflation has been less severe than anticipated, according to Fitch analysts. Public debt as a share of GDP reached 117 percent at the end of last year, more than double the median level of 46.3 percent for countries with an 'AA' rating. By the end of 2028, the ratio is expected to rise to 123 percent of GDP, and by 2030 to 128 percent, making the U.S. vulnerable to future economic shocks, the agency warned. The federal budget deficit is set to increase from 6.8 percent of GDP last year to 7.4 percent in 2026 due to tax cuts and $100 billion in tariff refunds returned by July. This level is expected to remain unchanged in 2027, the highest among countries with an 'AA' rating, partly reflecting increased military spending and interest costs. The U.S. government continues to enjoy high flexibility in financing thanks to the dominant share of dollars in global reserves, which stands at 58 percent. The dollar remains the most important currency for international trade, payments, and financial markets, according to Fitch. Additionally, foreign ownership of U.S. government bonds has remained stable over the past five years, hovering near 30 percent. Fitch downgraded the U.S. credit rating from 'AAA' to 'AA+' in 2023, citing expected fiscal deterioration and negotiations over the upper limit of debt. The current reaffirmation of the 'AA+' rating underscores ongoing concerns about long-term fiscal sustainability despite the nation's economic strengths. The U.S. economy's ability to absorb shocks and maintain flexibility has been a key factor in sustaining its credit rating. Analysts at Fitch emphasized that while the country's economic fundamentals remain robust, rising public debt and potential fiscal imbalances pose risks that could affect its standing in the future. The U.S. government has continued to benefit from the dollar's dominance in global finance, which provides a buffer against external economic pressures. However, the increasing debt burden and the trajectory of deficits raise questions about the long-term stability of the nation's fiscal position. These factors will likely continue to influence both domestic policy decisions and international perceptions of the U.S. economy. The Federal Reserve's stance on inflation and monetary policy will play a crucial role in shaping the economic landscape moving forward. With inflation remaining above target levels, the central bank faces pressure to balance growth and price stability. Meanwhile, the government's approach to managing deficits and controlling public debt will determine how effectively it can navigate future economic challenges.