Fitch downgrade: Why, why now and why it matters

This week, Fitch Ratings downgraded the U.S. long-term rating to AA+ from AAA — the top possible rating. It came as a surprise move to many and was lambasted by Treasury Secretary Janet Yellen.

Fitch blamed “the repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” in a statement.

MSNBC anchor and economic Ali Velshi joins us.