Washington reacts as S&P assigns "negative" outlook on U.S. debt

Standard & Poor's assigned a "negative" outlook to U.S. government debt, sending stocks tumbling worldwide. The credit rating agency said there is a one-in-three chance that the debt will be downgraded within two years. "We believe there is a material risk that U.S. policy makers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013," S&P said in a report. While some say the move could help spur a bipartisan deal to reduce the deficit, some lawmakers refuse to budge in the debate over raising the debt ceiling and regarding their own preferred methods for reducing deficits.

View Full Article in:

InvestmentNews (free registration) · Economist (free content), The · Wall Street Journal, The · Hill, The

Published in Brief: