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.
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