Fitch Ratings affirmed the United States’ long-term foreign-currency Issuer Default Rating at AA+ and kept the outlook stable, underscoring the economy’s size, diversified base and the U.S. dollar’s continuing role as the dominant global reserve currency. The rating agency, however, said consumer spending and business investment have slowed sharply as a weakening labor market intersects with higher inflation stemming from the 145% tariff on Chinese goods that took effect in April. Additional pressure comes from government spending cuts, stricter border enforcement and broader policy uncertainty, Fitch said. Against that backdrop, Fitch trimmed its U.S. growth outlook, projecting real GDP will expand just 1.5% in both 2025 and 2026 before rebounding to about 2.1% in 2027, a recovery predicated on accelerated interest-rate cuts beginning in 2026. Fitch also warned that Washington “hasn’t taken meaningful action” to curb large fiscal deficits. Persistently high borrowing needs or a further erosion in policy coherence could trigger negative rating action, the agency added.