Posted: Nov 7, 2012 10:54 AM
Source: Associated Press
WASHINGTON - Fitch Ratings says President Barack Obama must pivot off his re-election victory and quickly forge an agreement with Congress to prevent a series of tax increases and spending cuts that kick in next year.
The credit rating agency issued a news release Wednesday - hours after Obama won a second term - saying the president will have "No Fiscal Honeymoon." Fitch says Obama must work toward a credible plan to avoid the so-called fiscal cliff or risk losing the federal government's top 'AAA' rating next year.
The agency changed its outlook for the U.S. rating to negative last year after Congress and the Obama administration failed to meet a deadline for a plan. They face $600 billion in tax increases and spending cuts that go into effect on Jan. 1.