The U.S. Biden administration is wary of the turmoil in the financial markets triggered by the announcement of the economic program of the U.K. Truss administration, and is looking for ways to persuade the U.K. administration to reduce the scale of the large-scale tax cut proposal, which is the pillar of the program. there is
U.S. Treasury officials have become increasingly concerned about increased volatility in financial markets and potential ripple effects across the economy, and have put pressure on the U.K. government through the International Monetary Fund, according to people familiar with the matter. We are working on it.
The IMF called for a “reconsideration of tax measures” on the UK’s economic stimulus that led to a historic plunge in the bond and pound exchange rates on the night of the 27th. The United States has the largest stake in the IMF and has a virtual veto power over decisions on important issues.
U.S. Treasury Secretary Yellen avoided direct reference to British policy during a question-and-answer session with reporters on Wednesday. But Commerce Secretary Lemond said at an event in Washington on Wednesday that “policies that cut taxes and increase spending at the same time will neither kill inflation in the short term nor contribute significantly to long-term economic growth.” He expressed a frankly negative view of the direction of the administration’s policies.
A U.S. official who responded to a request for comment said the White House and the U.S. Treasury are in constant communication with allies and partners, including Britain, about the global economy.
President Biden convened the administration’s economic team on Tuesday for an update, and is in frequent contact with allies, partners and key market players to keep them informed regularly as the situation evolves. instructed to do so.
news-rsf-original-reference paywall">Original title:
news-rsf-original-reference paywall">US Treasury Eyes UK Turmoil With Growing Alarm, Working With IMF(excerpt)