JPMorgan Chase CEO Jamie Dimon said Wednesday that Fitch Ratings' downgrade of the US's long-term credit rating is ultimately unimportant because it is the market, not the rating agencies, that determines borrowing costs.
Dimon said that given its economic strength and global leadership, the United States' credit is solid and should have the highest rating in the world.
“It's kind of ridiculous that they have AAA ratings and America isn't,” said Dimon, referring to countries with higher credit ratings than the United States, such as Canada.
Fitch downgraded the country's rating from AAA to AA+ on Tuesday, citing “the steady deterioration in governance standards over the past 20 years” that has shaken confidence in financial management. The agency also pointed to the “expected financial deterioration over the next three years”, erosion in governance and an increasing overall debt burden.
Dimon also said that the debt ceiling should be removed as it creates unnecessary uncertainty and political strife.
Dimon also commented on the Fed's interest rate decision in September, saying that the FED may have to raise interest rates a little more to prevent inflation from getting out of control.
*Not investment advice.