Moody’s Investors Service raised the pressure on U.S. lawmakers to increase the government’s $14.3 trillion debt limit by placing the nation’s credit rating under review for a downgrade.
President Barack Obama is considering summoning congressional leaders to Camp David this weekend to work on a plan to raise the debt ceiling after yesterday’s negotiations on a deficit-cutting plan of at least $2 trillion stalled, according to two people familiar with the matter. A default resulting from a failure to raise the debt limit may lead to slower economic growth and another financial crisis.
China needs to “seriously assess the risks” of its holdings as the U.S. faces a “worrisome” economic outlook, Yu Bin, a senior government researcher, told reporters at a briefing in Beijing today.
The nation hopes the U.S. will adopt “responsible policy to ensure investors’ interests,” Chinese Foreign Ministry spokesman Hong Lei said at a separate briefing.