Late Tuesday Fitch Ratings downgraded the US's credit rating to AA+ from AAA citing rising government debt and 20 years of"steady deterioration in standards of governance" including"repeated debt-limit political standoffs".

Treasury Secretary Janet Yellen said Fitch's move was"arbitrary" and"based on outdated data." She also cited the strength of the US economy. By contrast, Fitch said in its statement that it expects the US to fall into"mild recession" in the fourth quarter this year and the first quarter next year.

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Major political events and special announcements by the global central banks can shift both the short-term and long-term outlooks for the global economy and financial markets.