On August 1, 2023, Fitch Ratings downgraded the US long-term credit rating from AAA to AA+ due to a worsening fiscal situation, increasing government debt, and declining governance standards. The downgrade received mixed reactions; some officials criticized it as "unwarranted" and "oddly timed," while market participants saw it as already reflected in asset prices. The downgrade serves as a warning sign, highlighting concerns over the US fiscal situation and governance.