Ratings firm Egan-Jones cut the sovereign debt rating of the United States to AA-minus from AA, citing the Fed's open-ended efforts to ease monetary policy. "The Fed's QE3 will stoke the stock market and commodity prices, but in our opinion will hurt the US economy and, by extension, credit quality," the firm said Friday. Egan-Jones said QE3 would reduce the value of the dollar, increase the cost of commodities, pressure business profitability and reduce customer purchasing power. "From 2006 to present, the US's debt-to-GDP rose from 66% to 104% and will probably rise to 110% a year from today under current circumstances," firm says, noting Spain has a debt to GDP of 68.5%.
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