PORTLAND, Ore., Oct 15 (Reuters) – U.S. President Joe Biden on Saturday criticized British Prime Minister Liz Truss’ initial economic plan as a mistake and said he was not worried about the rising U.S. dollar.
Truss on Friday fire his finance minister, Kwasi Kwarteng, and scrapped part of his economic package after causing turmoil in the financial market, including a sharp fall in the value of the pound.
Biden, a Democrat, has often criticized conservative “trickle-down” economic policies in the United States associated with former President Ronald Reagan and Republicans.
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His White House had previously declined to comment on the Truss plan, which would scrap Britain’s 45% income tax rate.
“I wasn’t the only one who thought it was wrong,” Biden said while standing at an ice cream shop in Oregon, referring to the Truss proposal.
“I think the idea of tax cuts for the super rich – I just think anyway – I don’t agree with the politics, but that’s the UK’s decision, not mine.”
Britain’s new finance minister on Saturday morning Jeremy Hunt said Some of the country’s taxes will rise and tough spending decisions will be needed, Truss said, more than a month into his tenure, as he made mistakes as he struggled to keep his job.
British Prime Minister Liz Truss attends a press conference in London, Britain, October 14, 2022. Daniel Leal/Pool via REUTERS
On the eve of mid-term elections in November, when control over the US House of Representatives and the Senate is at stake, high inflation worries the US and all countries of the world, creating a political headache for Biden.
The dollar has appreciated against other currencies.
“I’m not worried about the strength of the dollar. I’m worried about the rest of the world,” Biden said.
The president said that the US economy is strong.
“Our economy is strong as hell — its internals. Inflation is all over the world. It’s worse everywhere than in the United States,” he said.
“So, the problem is not ours, but the lack of economic growth and correct policies in other countries.”
Thursday’s Labor Department report is displayed U.S. consumer prices rose more than expected in September as rents rose and food prices rose.
The president made his comments at the end of a multi-day western swing that ended in Oregon, where he tried to give a political boost to Democrats. Tina Kotekwho is running for governor.
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Reporting by Jeff Mason in Portland, Oregon; Additional reporting by Mike Stone in Washington; Edited by Sandra Mahler and Tom Hogue
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