The Fitch Ratings downgrade of the United States’ long-term credit rating ultimately doesn’t matter, JPMorgan Chase CEO Jamie Dimon told CNBC on Wednesday.
“It doesn’t really matter that much” because it is the market, and not rating agencies, that determine borrowing costs, Dimon told CNBC’s Leslie Picker. “They point out some issues which we all knew about.”
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Still, it is “ridiculous” that other countries, including Canada, are rated higher than the U.S. when they depend on the stability created by the U.S. and its military, Dimon added.
Fitch downgraded the country’s rating to AA+ from AAA on Tuesday, pointing to “expected fiscal deterioration over the next three years,” an erosion of governance and a growing general debt burden.
The agency put the U.S. rating on watch in May after members of Congress butted heads over raising the debt ceiling and brought the country to near-default.
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