U.S. Senator Joe Manchin (D-WV) arrives prior to Israeli President Isaac Herzog’s address to a joint meeting of Congress at the U.S. Capitol in Washington, July 19, 2023.
Jonathan Ernst | Reuters
WASHINGTON — Senator Joe Manchin, a Democratic representative from West Virginia, has urged his fellow lawmakers to take decisive fiscal measures to strengthen the economy in response to Fitch credit analysts recently downgrading the United States’ long-held foreign issuer default rating.
Fitch downgraded the US credit rating from AA+ to AAA on Tuesday, which followed the firm’s placement of the nation’s rating on a negative watch in May. The downgrade came as a result of the US government’s prolonged debt ceiling debate and the January 6, 2021 insurrection at the US Capitol.
Senator Manchin, who also serves on the Appropriations Committee, described this downgrade as “an alarming warning that demands immediate attention.”
Speaking on CNBC’s “Squawk Box” on Thursday, Manchin emphasized that both Democrats and Republicans were responsible for the nation’s financial situation, stating, “When you look at the past 21 years where we have consistently spent more than what we have earned, the blame lies with both sides. We need to address this issue urgently, and it’s disappointing that we haven’t been taking it seriously.”
He further warned that the US is headed towards a “fiscal cliff” if lawmakers fail to take heed of Fitch’s “warning shot.”
Manchin expressed his gratefulness for Fitch’s downgrade as it serves as a catalyst to prompt the government to prioritize fiscal responsibility. He said, “We often neglect risk management and fail to acknowledge the severity of our financial situation until we find ourselves on the edge of a fiscal crisis every year.”
The Senator noted that the toxic atmosphere in Congress can only be alleviated through bipartisan agreements to increase spending, saying, “The only time we see any progress or bipartisan cooperation is when there’s an agreement to spend more money.”
Reflecting on the lack of budgetary discipline, Manchin highlighted, “The last time we passed a budget by September 30 was in 1997. At that time, the national debt was $5.5 trillion, which was already concerning. However, now we find ourselves with a staggering $32.5 trillion in debt.”
Manchin’s warning comes shortly after Treasury Secretary Janet Yellen criticized Fitch’s downgrade decision, considering it to be “completely unjustified” based on a “flawed assessment.”
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