President Obama is set speak to the press for the first time since S&P announced the decision to cut the U.S. government’s credit worthiness.
UPDATE: President Obama said that the United States will always be a triple-A nation, regardless of what the credit rating agencies say. He quoted Warren Buffett’s comment that the billionaire investor would give the U.S. a quadruple-A rating if it existed.
Standard & Poor’s Friday night decision to downgrade the long-term U.S. credit rating has sent ripples across the U.S. economy. The stock market depicted a grim sight as the Dow Jones fell roughly 4% during trading on Monday.
S&P released a statement that criticized the late struggle between lawmakers to push a deal that was hours away from the debt ceiling deadline on August. The agency has cut the country’s AAA credit rating to AA+, just one level down.
Economists and analysts have expressed disagreement with the downgrade as U.S. Treasury securities are still believed to be the safest of investments globally. S&P is being blasted for past mistakes in doling out stellar rating to many of the companies that contributed to the latest financial crisis.
In a Sunday interview with CNBC, Treasury Secretary Timothy Geithner said, “[S&P] has shown really terrible judgment and they’ve handle themselves very poorly. And they’ve shown a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement.”
Meanwhile, Moody’s Investor Service and Fitch Ratings, credit rating competitors of S&P, have reaffirmed their AAA rating for the United States.
President Barack Obama has not spoken on the S&P downgrade since the announcement on Friday but he is expected to address it during a live press event.
Watch the President’s comments live: