Posted on Sep 26, 2022
The British pound hit a record low over fears about income tax cuts and debt
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https://www.npr.org/2022/09/26/ [login to see] /british-pound-record-low-dollar
The British pound weakened to a record-low level against the U.S. dollar soon after global currency markets opened for the week in Asia on Monday, as traders and investors continue to react negatively to new plans unveiled last week by the United Kingdom's finance minister, Kwasi Kwarteng.
At one point, the pound was trading at just over $1.03, lower than at any time in history, before recovering slightly to above $1.06 — though it remained around its worst levels against the U.S. currency in the past 40 years. In recent weeks, the U.K.'s central bank, the Bank of England, has warned the country may already be in a recession.
The British pound weakened to a record-low level against the U.S. dollar soon after global currency markets opened for the week in Asia on Monday, as traders and investors continue to react negatively to new plans unveiled last week by the United Kingdom's finance minister, Kwasi Kwarteng.
At one point, the pound was trading at just over $1.03, lower than at any time in history, before recovering slightly to above $1.06 — though it remained around its worst levels against the U.S. currency in the past 40 years. In recent weeks, the U.K.'s central bank, the Bank of England, has warned the country may already be in a recession.
The British pound hit a record low over fears about income tax cuts and debt
Posted from npr.org
Money
Economics
Taxes
Posted >1 y ago
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PO1 William "Chip" Nagel
..."is unusual for a finance minister and central bank to be trying to force the same economy in different directions, and the new Conservative government has faced significant criticism from internationally respected economists, as well as the opposition Labour Party.
Labour's spokesperson on finance, Rachel Reeves, has said, "Trickle-down economics isn't the answer." And she accused Kwarteng of "fanning the flames" around the pound's weakness by suggesting in a BBC interview on Sunday that he would introduce further tax cuts in the months ahead."
..."is unusual for a finance minister and central bank to be trying to force the same economy in different directions, and the new Conservative government has faced significant criticism from internationally respected economists, as well as the opposition Labour Party.
Labour's spokesperson on finance, Rachel Reeves, has said, "Trickle-down economics isn't the answer." And she accused Kwarteng of "fanning the flames" around the pound's weakness by suggesting in a BBC interview on Sunday that he would introduce further tax cuts in the months ahead."
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