The US president called Liz Truss’ initial economic plans “wrong” amid continued criticism of the prime minister’s fiscal policy.
Speaking to reporters after a stop at an ice cream parlor in Oregon, Joe Biden He said he was “not the only one who thought it was a mistake” and that the poor outcome of the government’s mini-budget was “predictable”.
Mrs Truss’s economic plan, which sent financial markets into chaos and sent the pound plummeting, has been slammed by critics for failing to use forecasts by the Office for Budget Responsibility.
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As a result, he was forced to back off his aggressive tax-cutting initiative and dismiss Kwasi Kwarteng as chancellor.
Asked about the strategy, Mr. Biden explained that although he did not agree with the Prime Minister’s plan, it ultimately depends on the British people.
He also dismissed concerns about a strengthening dollar after the pound’s tumultuous period, saying: “I’m not worried about the strength of the dollar. I’m worried about the rest of the world.”
The president added: “The problem is the lack of economic growth and proper policies in other countries.”
In recent weeks, the dollar has hit a new record against the pound, helping US imports but making the country’s exports more expensive around the world.
His comments came weeks after White House officials declined to criticize Ms Truss, although they stressed the economic consequences of her policies were being closely watched.
“Orientation to the economy is correct”
The UK government is still in doubt over whether it will win the support of Conservative MPs with a series of painful tax and spending decisions reminiscent of austerity under David Cameron and George Osborne.
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Even newly appointed chancellor Jeremy Hunt declared the government’s original economic plan flawed and spent the weekend trying to woo the Conservatives into the new Downing Street regime.
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Mr Hunt, who met Treasury officials on Saturday, insisted he and the prime minister were a “team” and now prioritized “growth on stability”.
“The move to grow the economy is the right thing – it means more people can get good jobs, new businesses can grow and we can provide world-class public services. But we’ve gone too far, too fast,” he said.
One possible plan would be to delay by a year Mr Kwarteng’s aim to cut the basic rate of income tax, The Sunday Times reported, as Mr Hunt begins work on a new budget on October 31. a broader package designed to calm financial markets.
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