Biden knocks Truss economic plan, says not worried about dollar strength

PORTLAND, Ore., Oct 15 (Reuters) – U.S. President Joe Biden on Saturday criticized British Prime Minister Liz Truss’ original economic plan as flawed and said he was unconcerned about the strength of the U.S. dollar.

Trudeau sacked his finance minister Kwasi Kwarteng on Friday and scrapped parts of his economic package after sparking financial market turmoil, including a steep dive in the value of the pound.

Biden, a Democrat, is a frequent critic of the conservative “trickle down” economic policies associated with former President Ronald Reagan and Republicans in the United States.

Sign up now for unlimited free access to Reuters.com

His White House, however, has previously refused to comment on the Truce plan, which initially envisaged scrapping Britain’s top income tax rate of 45%.

“I’m not the only one who thinks it’s a mistake,” Biden told reporters during a stop at an ice cream shop in Oregon, referring to the dress plan.

“The idea of ​​cutting taxes on the very wealthy is at a time when – at any rate, I think – I don’t agree with the principle, but that judgment should be made by Great Britain, not me.”

Earlier on Saturday, Britain’s new finance minister Jeremy Hunt said some of the country’s taxes would rise and tough spending decisions were needed, saying Truss had made mistakes as he struggled to keep his job more than a month into his term.

High inflation is affecting the U.S. and countries around the world, creating a political headache for Biden ahead of November’s midterm elections, in which control of the U.S. House of Representatives and Senate is at stake.

The dollar has risen against other currencies.

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

The President said the US economy is strong.

“Our economy is strong as hell — its internal. Inflation is all over the world. It’s worse than it is in the U.S. everywhere else,” he said.

“So the problem is other countries’ lack of economic growth and proper policy, not ours.”

U.S. consumer prices rose more than expected in September as rents rose and food prices rose, a Labor Department report on Thursday said.

The president made his comments at the end of a multi-day western swing that ended in Oregon, where he sought to give a political boost to Democrat Tina Codec, who is running for governor.

Sign up now for unlimited free access to Reuters.com

Jeff Mason in Portland, Oregon reports; Additional reporting by Mike Stone in Washington; Editing by Sandra Maler and Tom Hogue

Our Standards: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published.