ICYMI: WHAT THEY ARE SAYING: Fitch Ratings Decision Called "Off-Base," "Absurd," and "Widely & Correctly Ridiculed"

Within minutes of Fitch issuing its ratings decision, a wide array of economists and commentators panned the move—including by pointing out that the ratings model used by Fitch declined under President Trump and then improved under President Biden.

Here's what they're saying:

Matthew Yglesias: "Check this chart — from Fitch! — the deterioration happened between 2018 & 2021 and it's gone up since then."

Paul Krugman: "Fitch downgrades the U.S., a decision widely and correctly ridiculed; it doesn't make sense even on their own stated criteria"

Mark Zandi: "Fitch's downgrade of U.S. Treasury debt to AA+ is off-base, IMHO. They rate the sovereign debt of a rather lengthy list of countries AAA. Really? Ask global investors whose bonds they would rather own if push comes to shove in the global economy - it's those of the U.S. Treasury."

Larry Summers: "The United States faces serious long-run fiscal challenges. But the decision of a credit rating agency today, as the economy looks stronger than expected, to downgrade the United States is bizarre and inept."

Jason Furman: "This is completely absurd. And is more likely to show that Fitch is irrelevant to the views of investors in U.S. sovereign debt than it is to show investors anything about the United States."

Mohamed A. El-Erian: "In a strange move, #Fitch just downgraded the US sovereign #ratings from AAA to AA+, with a stable outlook. The #rating agency's justification is set out in this statement (link below). I am very puzzled by many aspects of this announcement, as well as by the timing. I suspect I won't be the only one. The vast majority of economists and market analysts looking at this are likely to be equally perplexed by the reasons cited and the timing. Overall, this announcement is much more likely to be dismissed than have a lasting disruptive impact on the US #economy and #markets."

Matthew Ygelsias: "So Fitch cites: — A governance metric that declined under Trump but has improved recently — A debt ceiling standoff that was recently resolved — A looming recession that other forecasters have recently backed away from predicting I dunno, guys…"

Justin Wolfers: "Fitch has downgraded the U.S. long-term credit rating from AAA to AA+. And I'm mad as hell, because it's the direct result of a multi-decade campaign of fiscal vandalism and political sabotage by Republicans, and the rest of us are left footing the bill."

Philip Wegmann: "On the Fitch downgrading US long term rating, a source points out that 'their own graph has the U.S. dipping from AAA to AA+ under Trump, then continually moving upward toward AAA territory again once Biden took office.'"