Standard & Poor’s rating service took away the United States’ sterling AAA rating on Friday.
According to The Wall Street Journal, stocks dipped in early Asian trading and markets are reacting cautiously to the downgrade.
U.S. Treasury Secretary Timothy Geithner – who told NBC News that “S&P has shown really terrible judgement” regarding the downgrade – will stay at his post through next year’s elections.
President Barack Obama and his team expressed a desire to enact a series of confidence-building job proposals, including the creation of an infrastructure bank to finance road and bridge building, a move that would expand the scope of government power, The Journal reported.
While the President is looking to expand the power of the U.S. government, Republicans have noted that this type of spending would not be supported by the GOP.
“In any other private-sector enterprise, he would be fired,” Senator Lindsey Graham (R- S.C.) said on CBS’ Face the Nation.
In light of the recent developments the approval rating for the President dropped to the lowest number of his tenure, declining to 42 percent in the Gallup daily tracking poll, according to The Journal.