Figures. Obama Downplays Dismal S&P US Credit Outlook
President Obama downplayed the historic news today that the S&P moved the US credit outlook to negative.
The Obama administration moved swiftly Monday to downplay ratings agency Standard & Poor’s downgrade of its U.S. credit outlook, calling the decision a political judgment that should not be taken too seriously.
The timing of S&P’s announcement was unwelcome for the White House, coming just as President Obama tried to regain the initiative on the deficit debate in Washington.
Last week Obama laid out his plan to reduce the budget deficit by $4 trillion over 12 years, trying to give markets confidence that he was serious about tackling U.S. fiscal woes.
House Republican leader Eric Cantor on Monday called the S&P downgrade “a wake-up call” against those seeking to “blindly increase” the U.S. debt limit.
S&P downgraded the outlook for the United States to negative, saying it believes there is a risk U.S. policymakers would not reach agreement on how to address the country’s long-term fiscal pressures by 2013.