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1. FITCH WARNS OF DEBT-CEILING DOWNGRADE

With tensions mounting in Washington over raising the debt ceiling, Fitch Ratings on Tuesday renewed its warning that it will consider downgrading the nation's AAA sovereign credit rating if Congress lets the federal government run short of the money it needs to pay its bills. Fitch said the borrowing limit is an "ineffective and potentially dangerous mechanism" for enforcing fiscal responsibility, although it conceded that the risk that the U.S. would actually default on its debts "remains extremely low." Fitch also warned that if Congress fails to come up with a solid plan to reduce the federal budget deficit the U.S. will probably face a downgrade later this year "even if another debt ceiling crisis is averted." [MarketWatch]

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.