Government Shutdown Exposes Deeper U.S. Fiscal Problems, Fitch Says -- Market Talk
Dow Jones2025-10-02
1358 ET - The economic impact of the U.S. government shutdown "would depend on its scope and duration," Fitch economists write. The agency says frequent disputes over the budget "underscore an inability thus far to address the U.S.'s longer-term challenges to the public finances." Fitch sees the U.S. deficit narrowing to 6.8% of GDP in 2025 from 7.7% in 2024. It forecast a gap equal to 7.4% of GDP in 2026 and 2027. Debt-to-GDP ratio is expected to reach 122% in 2027, compared to the AA median of 48.1%. The dollar is expected to preserve its reserve currency status, "a material sovereign rating strength," Fitch says. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
October 01, 2025 13:58 ET (17:58 GMT)
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