No More Quick Fixes: Can Washington Avoid a Downgrade?

Last week, Congress hammered out a temporary extension to the debt ceiling that will have to be revisited in the spring. By then, Congress and the White House will hopefully have reached a long-term solution to the United States’ fiscal predicament that addresses both revenue and spending. According to Credit Suisse’s Ira Jersey, anything less could result in a downgrade of U.S. debt. While ratings agencies are keeping a close eye on the situation, Jersey notes that American companies are also keenly interested in the outcome. A comprehensive deal could give them the confidence they need to finally ramp up investments.