US Credit Rating Crumbles Again After Bernanke Announces More Quantitative Easing

The United States credit rating has taken another hit. Just after Ben Bernanke announced another round of quantitative easing just in time for the presidential election, we learn our credit rating has been reduced again.

CNBC reports:


Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.

The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. (Read more: Fed's 'QE Infinity' — Four Things That Could Go Wrong)

In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.