Ratings agency already warning Obama to avoid fiscal cliff - KWWL - Eastern Iowa Breaking News, Weather, Closings

Ratings agency already warning Obama to avoid fiscal cliff


Fitch Ratings says President Barack Obama must move past his election victory pretty fast, so that he can begin working on an agreement with Congress to avoid what's being dubbed the "fiscal cliff".  The "fiscal cliff" involves a series of tax increases and spending cuts that kick in next year.

The credit rating agency has said Obama has "No Fiscal Honeymoon." The agency insists Obama must work toward a credible plan to avoid the automatic cuts later this year, or risk losing the federal government's top `AAA' rating next year.

The agency changed its outlook for the U.S. rating to negative last year after Congress and the Obama administration failed to meet a deadline for a plan. They face $600 billion in tax increases and spending cuts that go into effect on Jan. 1.

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