US 'faces second downgrade by year end' after debt impasse

The US supercommittee's failure to agree a debt reduction plan means the country faces a second rating downgrade by the year end, an economist has warned.

The chief economist at Mizuho Securities, Steve Ricchuito, warned in a report a further cut to the county’s credit ratings is “only a matter of time”, the Wall Street Journal reports. “I would not be surprised if S&P puts the Treasury on watch for another downgrade in the weeks ahead and that Moody’s or Fitch move before the 23 December date when the legislation implementing the Super Deficit Committee’s recommendations were scheduled to be enacted,” he said. The Congressional Joint Select Committee on Deficit Reduction, announced on Monday it has failed to reach a deal to cut $1.2trn...