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Joe Biden calls Truss tax cut a ‘mistake’ as Bank of England warns of rate hike

Truss was fighting to keep her job on Saturday after scrapping an economic growth plan Friday that included a dumping plan to reverse a rise in the corporate tax rate.

Truss, who took office just 40 days ago, has been out of favor with her prime minister after the value of the pound collapsed to a record low against the dollar and British bonds plunged in response to a multi-billion pound energy package. sacked its ally Kwasi Kwarten. Tax relief from $45 billion ($81 billion) of debt.

Governor Andrew Bailey of the Bank of England.credit:bloomberg

She recruited her faction rival, Jeremy Hunt.

Hunt is also reportedly prepared to delay an income tax cut, with the base rate dropping from 20% to 19% from April 2023. In a series of interviews, Hunt declared that Truss’ tax cuts would be delayed, saying, “Some taxes will go up.”

UK government borrowing costs hit a 20-year high last week, with 20- and 30-year gold coin yields at 5.195% and 5.1% respectively, the highest since 2002.

Bailey said banks would not take any action on interest rates until the new fiscal plan was announced, saying it was the “right course of action” and adding that “we should know the full picture of fiscal policy by then.” will be,” he added.

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But officials said they would “not hesitate to raise interest rates” to meet the 2% inflation target. The warning came just weeks after the bank raised interest rates by half a percentage point to his 2.25% on Sept. 22.

Prior to Bailey’s comments, the market expected a 0.75% to 1% rise when the banks’ monetary policy committees make their next interest rate decision in November.

Bailey said there had been “some violent developments in the past few weeks” in UK markets following the government’s fiscal policy and a dramatic loss of £65bn amid “significant risks” to UK stability. said it triggered the decision to unleash a government bond-buying plan. and the pension market.

Kwarteng, who was recalled to London to be fired from the International Monetary Fund’s annual meeting in Washington on Thursday, reportedly said Truss’ actions only earned her “a few more weeks.” He told a colleague. With just 38 days in office, he was the second shortest prime minister in British history.

Treasury Secretary Jeremy Hunt has announced that he will withdraw many of the tax cuts announced under Liz Truss.

Treasury Secretary Jeremy Hunt has announced that he will rescind many of the tax cuts announced under Liz Truss. credit:Getty Images

Times A source said, “In his view, the wagons will still turn around,” and senior government official Downing Street thinks it’s only a matter of time before she loses her job.

“Senior officials are now talking openly about her going,” a Whitehall source told the paper. “They think she had it.”

Supporters of Truss leadership rival Rishi Sunak in the summer vote said that if enough Conservative MPs could persuade the 1922 Commission to tell the Prime Minister that her time was over, he would have to vote. believes may be in Downing Street in a few months.

Speaking to reporters at an ice cream parlor in Oregon on Saturday, Mr. Biden endorsed the Democratic nomination for governor and defended the U.S. economy as “strong as hell.”

“I worry about the rest of the world,” he added. “The problem is the lack of economic growth and sound policies in other countries.”

“This is global inflation and it is inevitable,” Biden said.

with AP

Joe Biden calls Truss tax cut a ‘mistake’ as Bank of England warns of rate hike

Source link Joe Biden calls Truss tax cut a ‘mistake’ as Bank of England warns of rate hike

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