RENEE MONTAGNE, Host:
The fallout from the downgrade of the government's creditworthiness will likely go on for some time on Wall Street. The political fallout is a lot less clear. With Congress on its August recess, party leaders are lying low while they gather their rank-and-file and make plans for what's next.
NPR's Andrea Seabrook reports on congressional reactions so far to the downgrade.
ANDREA SEABROOK: Standard & Poor's was clear about why it downgraded the country's credit rating. Its statement said it, quote, "reflects our view that the effectiveness, stability and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges."
AAA: The government lost its AAA status...
BARACK OBAMA: Not so much because they doubt our ability to pay our debt if we make good decisions, but because after witnessing a month of wrangling over raising the debt ceiling, they doubted our political system's ability to act.
SEABROOK: The very first reaction this got from members of Congress? More partisan wrangling.
JOHN KERRY: I believe this is, without question, the Tea Party downgrade.
SEABROOK: Democratic Senator John Kerry on NBC's "Meet the Press."
KERRY: This is the Tea Party downgrade because a minority of people in the House of Representatives countered even the will of many Republicans in the United States Senate.
ALLEN WEST: I find those comments to be absolutely the most insidious thing that I've ever heard.
SEABROOK: This retort from Florida Republican Congressman Allen West on Fox News. He said, of the Democrats...
WEST: They have to look at themselves and they have to understand that they are the ones that are totally to blame.
SEABROOK: Doesn't sound like a whole lot has changed, does it? But there are those lawmakers who are thinking a little differently after the downgrade. Many weren't shocked by it, for one thing, like freshman Republican Andy Harris of Maryland.
ANDY HARRIS: Honestly, I wasn't very surprised because we were told that if the final deal wasn't large enough or convincing enough, that we should expect a downgrade.
SEABROOK: Harris was one of the Republicans who voted against his party's final deal, because, he says, it just wasn't large enough.
Senate Democratic Leader Harry Reid signaled the same thing, even before the downgrade, as he answered reporters' questions in a Senate hallway.
HARRY REID: The question is: After we get this done, is there need for comprehensive deficit reduction? The answer is not only yes, but hell yes.
SEABROOK: Reid and the other leaders in the Senate and House are appointing members of a super-committee to come up with about a trillion-and-a-half more dollars in deficit reduction.
And that's where many in Washington - and on Wall Street - are pinning their hopes for a brighter fiscal future. Andy Harris, that freshman Republican congressman, says Congress has got to convince the credit rating agencies that it can get a hold of runaway deficits.
HARRIS: You know, the silver lining to the downgrade is it'll make us face reality in Washington.
SEABROOK: But here's the problem: Many, many economists - including the ones at S&P, who downgraded the country's credit rating - say one of the keys to getting deficits under control would be to raise taxes on wealthier Americans, something most Republicans adamantly oppose.
And it's not just economists who want that, says Andy Kohut, a pollster with the Pew Research Center for the People and the Press. The public wants a so- called balanced approach, too.
ANDY KOHUT: We have found, and every other poll has found the American public saying compromise, compromise, compromise.
SEABROOK: So that lobs the ball directly into Congress's court. In the deal it passed just before the recess, the super-committee is given extraordinary legislative powers: 12 lawmakers can come up with a plan that goes straight to the House and Senate floors for an up-or-down vote - no procedural trickery, no poison pills. The super-committee could just be the place where lawmakers finally compromise.
Andrea Seabrook, NPR News, the Capitol.
MONTAGNE: Three of those super-committee members were announced last night: Democratic Senators Patty Murray of Washington, Max Baucus of Montana and John Kerry of Massachusetts. They'll be joined by nine others and will have to come up with more than a trillion dollars of deficit reduction by Thanksgiving. Andrea Seabrook will have more on that super-committee later today on ALL THINGS CONSIDERED.
NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.