Egan-Jones cuts US debt rating to AA- from AA - WKOW 27: Madison, WI Breaking News, Weather and Sports

Egan-Jones cuts US debt rating to AA- from AA

Posted:
By Tiffany Yapp - email

NEW YORK (WKOW) -- A credit ratings agency downgraded the U.S. debt rating to AA- from AA, citing Federal Reserve plans to try to stimulate the economy.

Egan-Jones says the Fed's plans to buy mortgage bonds will likely hurt the economy more than help it. The company says the plan will hurt businesses and consumers because it will reduce the value of the dollar and raise the price of oil and other commodities.

It is the second downgrade of the U.S. by the company. In April, Egan-Jones downgraded the U.S. to AA from AA+. The company stripped the U.S. of a top AAA rating in July 2011.

On Thursday, the Federal Reserve said it would buy $40 billion of mortgage bonds a month to help the economic recovery.

Powered by WorldNow
All content © Copyright 2000 - 2013 WorldNow and WKOW. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.

Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Program Manager Jessica Miller at 608-661-2794. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at fccinfo@fcc.gov.