Janet Yellen blames Fitch’s ‘flawed assessment’ for U.S. credit downgrade

Treasury Secretary Janet Yellen is angry.

You don’t like her when she’s angry.

After Fitch Ratings downgraded the U.S. long-term foreign-currency issuer from AAA to AA+, the White House was furious, saying that it “defies reality.”

Treasury Secretary Janet Yellen continued the outrage.

Speaking at an Internal Revenue Service contractor office near Washington, Yellen called it “entirely unwarranted.”

“Fitch’s decision is puzzling in light of the economic strength we see in the United States,” Yellen said. “I strongly disagree with Fitch’s decision, and I believe it is entirely unwarranted.”

She added that Fitch maintains a “flawed assessment” because of the improvements made by the current administration and the strong economy.

This sounds similar to when she said the U.S. was not in a recession because of the GDI and GDO rather than the GDP. The White House changes the preferred metrics to suit a narrative.

“At the end of the day, Fitch’s decision does not change what all of us already know: that Treasury securities remain the world’s preeminent safe and liquid asset, and that the American economy is fundamentally strong,” she added.

Because of this arrogance, ignorance, and perhaps the magic mushrooms, the U.S. Treasury Department still plans to borrow $1 trillion in the third quarter.