Outlook for the US Economy (Fitch Ratings Agency)

Fitch (one of the major credit rating agencies) just affirmed the credit rating of the US as AAA, but raised some concerns.  It also provided a good explanation of the current situation and outlook for the economy.  The following is a part of its report:

The coronavirus has inflicted an unprecedented shock on financial markets and economic activity, with policymakers struggling to avert a longer-lasting downturn. In common with other advanced countries, the U.S. has shut down parts of its economy to slow the spread of the disease, which will cause a deep contraction centered on second-quarter 2020 (2Q20) and a massive rise in unemployment. In its baseline, Fitch assumes containment measures can be unwound in the second half of 2020 (2H20), allowing for recovery in sequential growth and labor markets. With so much depending on the progress of the virus, there is a large degree of uncertainty around our economic forecasts.

Click here to read the rest of the press release.