Summers, El-Erian Pile Criticism on Fitch Downgrade Decision (3)

Prominent economists Larry Summers and Mohamed El-Erian joined a cohort of their peers in criticizing Fitch Ratings’ decision to downgrade the US given signs of resilience in the world’s largest economy.

Former Treasury Secretary Summers said while there are reasons for concern about the long-run trajectory of the US deficit, the country’s ability to service its debts wasn’t in doubt. El-Erian, chief economic adviser to Allianz SE, said the downgrade was “a strange move” that was unlikely to impact markets.

Source: Bloomberg

“The idea that this is creating the risk of a default on US Treasury securities is absurd, and ...