US President Joe Biden has criticised British Prime Minister Liz Truss’s original economic plan as a mistake and said he was not concerned about the strength of the soaring US dollar.
Key points:
- Joe Biden has commented on the Truss economic policy for the first time
- Mr Biden is not concerned about the USD, but says he is concerned for the rest of the world
- The AUD/USD has sunk to similar global “crisis” levels of October 2008 and March 2020
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, 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 judgement, 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 midterm elections in which control of the US House of Representatives and Senate are at stake.
The 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.”
Last week, the Australian dollar sunk to a 29-month low, with the AUD/USD exchange rate reaching similar levels to global “crisis” levels of October 2008 and March 2020.
A Labor Department report on Thursday showed US consumer prices increased more than expected in September as rents surged and the cost of food rose.
The president made his comments at the end of a multi-day western swing that concluded in Oregon, where he sought to give a political boost to Democrat Tina Kotek, who is running for governor.
Reuters
