For all those people who think the government's current deficit reduction is incorrect maybe they should look over to the US. There, indecisiveness is taking hold as a budget fails to go through congress. As such ratings agency Standard & Poor's (S&P) have downgraded the outlook for the US debt from "stable" to "negative". This means S&P estimate that there is a 1 in 3 chance that in the next 2 years they will downgrade the country's credit rating.
"More than two years after the beginning of the recent crisis, U.S. policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures"
The US is now the only one of the 17 countries with an AAA rating to have this outlook. The response to which was a fall in the FTSE as well as the Dow Jones.
The UK's position remains as stable.
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