On Saturday, President Joe Biden referred to the abandoned tax cut plan of British Prime Minister Liz Truss as a “mistake” and expressed concern that other countries’ fiscal policies may harm the United States due to “global inflation.”
After Truss’ proposal sparked turbulence in the world financial markets, Biden said it was “expected” that the new prime minister was compelled to scale back intentions to aggressively cut taxes without providing cost savings. It was a rare instance of a U.S. president criticising one of the country’s closest friends’ domestic policy choices.
Biden claimed, “I wasn’t the only one who thought that was a mistake. I disagree with the policy, but Great Britain should decide that.
Biden’s remarks followed weeks in which White House officials had refrained from criticising Truss’ plans but stressing that they were keenly watching the economic consequences. He was addressing the media at an ice cream parlour in Oregon where he had unexpectedly stopped to support Democratic governor candidate Tina Kotek. Democrats nationwide are facing a challenging political climate as the GOP criticises their handling of the economy.
In recent weeks, the dollar hit a new record versus the British Pound. While this favours American imports, it increases the cost of the United States’ exports to the rest of the globe.
The U.S. economy, according to the president, “is robust as hell.”
He said, “I’m worried about the rest of the globe.” The lack of effective policies and economic progress in other nations is the issue.
“It’s the global inflation, that’s crucial,” Biden said.