Biden slams Truss' tax plan as a "mistake"
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The US economy is "strong as hell," says Biden - but Truss' tax plan is a "mistake."
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US President Joe Biden (AFP)
US President Joe Biden has called on UK PM Liz Truss' abandoned tax cut plan a "mistake," and said he is worried that other nations' fiscal policies may hurt the US amid "worldwide inflation".
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Biden said it was "predictable" that Truss was forced to reverse plans to aggressively cut taxes without determination of cost savings, after the PM's proposal caused turmoil in markets around the world.
It is unusual for the US President to have a go at the UK's domestic policy decisions, knowing that it is one of the US' closest allies.
“I wasn’t the only one that thought it was a mistake,” Biden said. “I think that the idea of cutting taxes on the super-wealthy at a time when … I disagree with the policy, but that’s up to Great Britain.”
Biden went on to lambast Truss' lack of "sound policy" in other countries to economic growth.
Truss could be facing a leadership challenge if newly appointed Chancellor Jeremy Hunt's policies don't fix the market chaos at home caused by his predecessor's so-called mini-budget.
Biden's comments come weeks after White House officials declined to criticize Truss' proposals. In contrast, they were monitoring the economic fallout.
The US is currently in the middle of facing a tough political environment where a coming recession would cripple the living standards of millions in the country. Democrats, in particular, are feeling the heat from Republicans for what is considered failed economic policies.
Good for us, bad for you!
Biden remarked that he was not concerned about the strength of the dollar; the US currency set a new record against the British sterling recently, benefiting imports to the US. However, this makes US exports more expensive for other countries around the world.
The US economy "is strong as hell … I’m concerned about the rest of the world. The problem is the lack of economic growth and sound policy in other countries.
“It’s worldwide inflation, that’s consequential.”
Read next: Biden jabs at 'trickle-down economics', Truss reveals UK tax cut plans
Last week, the chief executive of JPMorgan, Jamie Dimon, predicted that the US economy will fall into recession within 6 to 9 months, citing a number of factors leading to this.
In an interview with CNBC in London, Dimon posited that the Federal Reserve's strategy for dealing with inflation - which is running away from it - in addition to unknown effects of quantitative easing and consequences of the Ukraine war are all exacerbating the situation.
It is almost impossible, according to Dimon, to predict whether the coming recession will be severe and long, short, or moderate.
See more: Americans concerned about their everyday purchases
