CNBC Video - Austan Goolsbee - April 18, 2011
In an interview with CNBC, Austan Goolsbee, chairman of the Council of Economic Advisers, characterized the S&P move as a "political judgement." "What the S&P is doing is making a political judgement and it's one we don't agree with, and it appeared to me that Moody's and some others don't agree with that judgement," Goolsbee said.
The U.S. Treasury also voiced disagreement with the S&P revision.
"...We believe S&P's negative outlook underestimates the ability of America's leaders to come together to address the difficult fiscal challenges facing the nation," Treasury Assistant Secretary Mary Miller said in a statement.
The last time the United States was placed on a negative watch was in January 1996. Moody's made the call at that time, after congressional Republicans refused a vote on the U.S. debt ceiling, a topic that is once again at the center of debate in Washington.