PIMCO's Cantrill on Fitch Cutting US Rating

The transcript discusses the recent debt ceiling deal and its implications. It highlights the surprise in timing rather than the downgrade itself, noting that Fitch had been monitoring the situation. The market impact is considered minimal, and the US dollar's reserve currency status remains strong. Politically, the downgrade may be used against Democrats and President Biden, with austerity politics resurfacing. Public concern over fiscal trajectory is increasing, as shown by recent polls.

In what ways might the downgrade be used politically in the upcoming election cycle?

What trends in voter concerns about fiscal trajectory are highlighted in the text?