Debt Deal Leaves Risk of U.S. Downgrade, Pimco’s Kashkari Says

The debt-limit compromise passed by Congress and signed by President Barack Obama leaves the U.S. at further risk of a reduction in its top credit rating if politicians don’t reduce the deficit, according to Pacific Investment Management Co.’s Neel Kashkari.

“No one is touching entitlements, no one is touching tax reform, and we have yet another commission,” Kashkari, head of new investment initiatives at Pimco, said in an interview on “InBusiness With Margaret Brennan” on Bloomberg Television. “Do we really need another commission to realize that we just need political courage to make hard choices?”