US TREASURY secretary Tim Geithner has insisted that the country “will never” lose its top credit rating, despite a rising budget deficit.
Geithner said that in times of economic crisis, international investors will carry on buying US Treasury bonds and dollar-denominated assets because they are regarded as a safe investment.
The Obama administration has predicted a $1.6 trillion budget deficit for this year.
“Absolutely not,” said Geithner, when asked in an interview with ABC News whether a downgrade is a concern. “That will never happen to this country.”
Moody’s warned last week that the US triple-A credit rating could be in danger if the nation’s finances don’t improve.
The government plans to rein in the deficit once the labour market bounces back, Geithner said. ”.