US fiscal pressures to persist regardless of midterm election outcome: Fitch

Fitch Ratings has warned that the United States is likely to face continued fiscal pressures, driven by rising entitlement spending and debt-servicing costs, regardless of the outcome of the upcoming midterm elections. The credit rating agency noted that the US federal budget deficit reached nearly $2 trillion, equivalent to 6.1% of GDP, in fiscal 2026. Fitch forecasts the general government deficit to widen to 7.5% of GDP in 2026 and 7.6% in 2027, which would be the highest among sovereigns rated in the 'AA' category.