Advertisement

US President Joe Biden calls British PM Liz Truss’s economic plan ‘a mistake’

US President Joe Biden has criticised British Prime Minister Liz Truss’s original economic plan as a mistake and says he is not concerned about the strength of the soaring US dollar.

Ms Truss on Friday fired her finance minister Kwasi Kwarteng and scrapped parts of their economic package after it sparked financial market turmoil, including a steep dive in the value of the pound.

Mr Biden, a Democrat, frequently criticises conservative “trickle down” economic policies, associated in the United States with former president Ronald Reagan and Republicans.

His White House, though, had previously declined to comment on the Truss plan, which initially foresaw scrapping Britain’s 45 per cent top income tax rate.

“I wasn’t the only one that thought it was a mistake,” Mr Biden told reporters on Saturday during a stop at an ice cream shop in Oregon, referring to the Truss proposal.

“I think that the idea of cutting taxes on the super wealthy at a time when – anyway, I just think – I disagreed with the policy, but that’s up to Great Britain to make that judgment, not me.”

Earlier on Saturday Britain’s new finance minister Jeremy Hunt said some of the country’s taxes would go up and tough spending decisions were needed, saying Ms Truss had made mistakes as she battles to keep her job just over a month into her term.

High inflation is afflicting the United States and countries worldwide, creating a political headache for Mr Biden ahead of the November mid-term elections in which control of the US House of Representatives and Senate are at stake.

The US dollar has soared against other currencies.

“I’m not concerned about the strength of the dollar. I’m concerned about the rest of the world,” Mr Biden said.

The president said the US economy was robust.

“Our economy is strong as hell – the internals of it. Inflation is worldwide. It’s worse off everywhere else than it is in the United States,” he said.

“So the problem is the lack of economic growth and sound policy in other countries, not so much ours.”

-Reuters

Advertisement
Advertisement
Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter.
Copyright © 2024 The New Daily.
All rights reserved.