Biden says Liz Truss’ economic plan was a mistake; Premier meets with new secretary

PORTLAND – While Liz Truss tries to survive the post of prime minister of UK little more than a month after taking office, the president of the United States, Joe Bidenmade direct criticism of its old economic plan. According to him, the idea of ​​cutting taxes on the richest was a mistake and said he was concerned that the fiscal policies of other nations could hurt the US amid world inflation.

Biden said it was predictable that the new prime minister would be forced to drop plans to cut taxes without identifying how it would cost, after Truss’ proposal caused turmoil in global financial markets. It marked an unusual critique by a US president of the domestic policy decisions of one of his closest allies.

“I wasn’t the only one who thought it was a mistake,” Biden said. “I disagree with the policy, but it depends on the UK.” His comments came after weeks of White House officials refusing to criticize Truss’ plans, while stressing they were closely monitoring the economic fallout.

Liz Truss and Joe Biden meeting during the UN General Assembly
Liz Truss and Joe Biden meeting during the UN General Assembly
Photograph: Toby Melville/AP

He was talking to reporters at an Oregon ice cream parlor, where he made an unannounced stop to promote the gubernatorial candidate for the Democratic Party Tina Kotek, as Democrats across the country face a difficult political environment amid criticism from the Republican party the way they deal with the economy. On November 8, the US will go through midterm elections to renew Congress and part of the Senate.

Biden said he was not worried about the strength of the dollar – which has set a new record against the pound sterling in recent weeks – that benefits US imports but makes US exports more expensive to the rest of the world.

Biden’s comments were quickly endorsed by members of the Labor Party, who have already called for Truss’s resignation – a request that has already been echoed within some conservative members. “This is totally humiliating for Liz Truss. President Biden’s comments confirm the impact our international reputation has suffered thanks to the[ConservativeParty”wroteLaborDavidLammy[PartidoConservador”escreveuotrabalhistaDavidLammy

This Sunday, the 16th, the prime minister met with her new treasury secretary, Jeremy Huntafter he replaced Kwasi Kwarteng. The day before, Hunt said in an interview with BBC what the prime minister was aware of the mistakes she had made, and promised a change in UK economic policy..

Truss insisted during the meeting on his attachment to a sound economy, after a tense week under attack from his own party that threatens his continuity in office. She admitted that it was painful to fire Kwasi Kwarteng, an economic ultraliberal and her longtime friend, from office. The meeting aimed to outline a new program ahead of the presentation of the budget on 31 October.

“You cannot pave the way for a low-tax, high-growth economy without maintaining the market’s confidence in the strength of our currency.” The Sun.

The erosion of confidence began on September 23, when Kwarteng and Truss unveiled their ultra-liberal programme, inspired by US President Ronald Reagan’s policies in the 1980s, to implement a £45bn tax cut, financed solely by an increase in debt. .

Markets plummeted, sending debt rates and the Conservative Party plummeting in the polls. An internal war then broke out, just weeks after Truss succeeded Boris Johnson.

Britain's new treasury secretary leaves BBC studio after his first interview on the job
Britain’s new treasury secretary leaves BBC studio after his first interview on the job Photograph: Henry Nicholls/Reuters

In an attempt to stay in office, she fired her newly appointed finance minister and replaced him with Jeremy Hunt.

On Sunday, Hunt insisted the prime minister retains control of her government despite having to reverse her signature economic policies while campaigning for office. He said taxation would rise and public spending would shrink despite the UK’s growing cost-of-living crisis.

He said he was surprised to receive the call to return to the Cabinet – having served in two previous Conservative governments – but was honored to join the government as he shared Truss’ desire to prioritize economic growth. “It changed the way we’re going to get there, but it hasn’t changed the destiny, which is to grow the country,” Hunt said./AP and AFP

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