Joe Biden: Liz Truss’ tax cuts are a ‘mistake’ and ‘I wasn’t the only one’ who thought so US foreign policy

Joe Biden has called Liz Truss’s abandoned UK tax cut plan a “mistake” and said he was concerned that other nations’ fiscal policies could hurt the US amid “global inflation”.

Biden said it was “predictable” that Britain’s new prime minister on Friday was forced to roll back plans to aggressively cut taxes without identifying cost savings after Truss’ proposal caused turmoil in global financial markets.

It was an unusual criticism by a US president of the domestic policy decisions of one of his closest allies.

“I wasn’t the only one who thought it was a mistake,” Biden said. “I don’t agree with the policy, but that’s up to the UK.” He criticized a lack of “sound policies” in other countries when it comes to economic growth.

Biden’s comments came after weeks of White House officials refusing to criticize Truss’s plans, despite stressing they would be monitoring the economic fallout closely. The US President spoke to reporters at an ice cream parlor in Oregon during an unannounced campaign freeze for Democratic nominee for governor Tina Kotek. The Democrats face a difficult political environment in the US amid Republican criticism of their handling of the economy.

Biden said he wasn’t concerned about the dollar’s strength — it had set a new record against the pound sterling in recent weeks, which is helping imports but making US exports more expensive to the rest of the world.

The President said the US economy is “fucking strong… I’m worried about the rest of the world. The problem is the lack of economic growth and sound policies in other countries.

“It’s global inflation, that makes sense.”

Truss’ new chancellor, Jeremy Hunt, said the mini-budget of Truss and his predecessor Kwasi Kwarteng went “too far and too fast” when it effectively signaled the demise of the prime minister’s economic vision.

“We have to be honest with people and we’re going to have to make some very difficult decisions, both in terms of spending and taxes, to get down on debt, but making those decisions is about how we protect ourselves and can help struggling families, businesses and people.”

Hunt is expected to announce that plans to cut the property tax rate will be delayed by a year next April. The cut to 19% now comes into effect at the time previously proposed by Rishi Sunak, the former Chancellor who was Liz Truss’ main rival in leadership.

With Associated Press

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