Treasury Secretary Timothy Geithner said the U.S. isn’t in danger of losing its gold-plated credit rating, arguing that policymakers just need to show that they have the will and ability to make “tough” fiscal choices.
There is “no way” the U.S. is going to lose its ‘AAA’ credit rating, Geithner said in testimony before the House Appropriations Committee when asked about the recent Moody’s (MCO) report.
iMarketNews: “There is no way that’s going to happen,” he replied. “There’s not a chance that’s going to happen to this country.”
Still, he warned, future growth will be weaker if policymakers do not do a better job over time to demonstrate that they are able to make tough choices.
This is why the recently created fiscal commission is so important, ” Geithner said.
“This is completely within our capacity as a country to solve,” Geithner told the committee, referring to the risks associated with postponing fiscal expectations as the nation copes with its growing debts. “It just requires that we find some political will to make those choices, ” he added.
According to iMN, Geithner agreed with the assertion that the U.S. deficit situation is reaching unsustainable levels, adding that in order to ensure strong economic growth in the future, “we need to make sure that we are working together to lay out a path to bring those deficits down.”