Mohamed El Erian says Fitch downgrade of the US is a strange move, likely to be dismissed

Mohamed El-Erian is chief economic advisor at Allianz SE.

Comments on the Fitch downgrade in a Tweet.

ICYMI:

• Fitch downgrades USA long-term credit rating to AA+ from AAA
• Here is what happened in markets the last time the US was downgraded: Stocks, FX and gold
• Fitch placed USA on negative watch back in May, now has cut the US rating from triple A
• EUR/USD spiking higher, USD/JPY lower after US rating downgrade
• US equity futures have dropped, hard, upon reopening after the downgrade

• Senior Biden admin official says Fitch downgrade of the USA is baseless and bizarre