Larry Summers (former Finance Minister): “Bellwing” for sterling

Larry Summers (former Finance Minister): “Bellwing” for sterling
Larry Summers (former Finance Minister): “Bellwing” for sterling

The pound continues to slide, now losing almost 2.54%, slipping below the 1.10 level to 1.0973 against the dollar.

Former US Treasury Secretary Larry Summers has scathed the economic policies being adopted by new UK Prime Minister Lizz Truss, saying they are creating the conditions for the pound to sink even below one dollar against the US dollar.
“I’m very sorry to say it, but I think the UK is behaving a little bit like an emerging market turning into a sinking market,” Summers said on Bloomberg Television’s “Wall Street Week.”
“Between Brexit, how far behind the Bank of England has fallen and now these fiscal policies, I think Britain will go down in history as having the worst macroeconomic policy of any major country for a long time.”
“I wouldn’t be surprised if the pound ended up below one dollar if the current course is maintained,” Summers said.
The Truss government has drawn up the most radical package of tax cuts for the UK since 1972, slashing contributions to both workers and businesses in a bid to boost the economy’s long-term potential.
Economists worry that the package is unsustainable and will trigger a currency crisis due to worries about rising debt.
The pound continues to slide, now losing almost 2.54%, slipping below the 1.10 level to 1.0973 against the dollar.

www.bankingnews.gr


The article is in Greek

Tags: Larry Summers Finance Minister Bellwing sterling

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