Biden: Truss' original economic plan was a mistake 2022
US President Joe Biden said that he was not the only person who believed that the original economic plan of British prime minister Liz Truss-which led to a sharp devaluation of the pound - was wrong.
"I wasn't the only one who felt it was a mistake,"he added at Oregon State.
The White House declined to comment on Truss's problems, while when asked about the strength of the dollar, Biden said: "I'm not worried about the strength of the dollar, I'm worried about the rest of the world".
Britain's new finance minister Jeremy Hunt said on Saturday that some taxes would be increased and difficult spending decisions needed to be made.
Hunt, who previously served as foreign minister, said Truss had made mistakes while trying to retain her post, which she took over just over a month ago.
In an attempt to calm financial markets, Truss sacked Finance Minister Kwasi Kwarteng, and scrapped items from their controversial economic program.
Kwarteng is the second in the list of the shortest-serving British finance ministers, having held this position for only 38 days.
In an article for the Sun newspaper published late on Saturday, Truss admitted that the plans had gone "further and faster than the markets had expected".
I've heard and understood; we need to preserve market confidence in our dedication to reaching a strong fiscal position if we want to pave the road for a low-tax, high-growth economy, she said.
Adding that Hunt would at the end of the month lay out a plan to reduce public debt "in the medium term".
Financial gap
The "Sunday Times" reported that Hunt would cancel further from the original Truss package by delaying the planned reduction of the basic rate of income tax as part of a desperate attempt to achieve balance.
The newspaper quoted Britain's Independent Financial Supervisory Authority as saying in the draft forecast that there may be a gap of 72 billion pounds (80 billion dollars) in public finances by 2027-2028, which is worse than economists expected.
Truss won the leadership contest to replace Boris Johnson based on a program that includes significant tax cuts to stimulate growth, which Kwarteng announced last month.
But the absence of any details on how the cuts would be financed pushed the markets to collapse.
In his first move since taking office late last Friday, the new minister spoke with the governor of the Bank of England Andrew Bailey, who had to make costly interventions in order to calm the bond markets.
Bailey cautioned that the central bank "would not hesitate" to boost interest rates in order to keep high inflation under control in a speech given in Washington on Saturday. further difficulties for British families and businesses after the failed budget plan.