THE GUARDIAN: Former US Treasury secretary Larry Summers warns the first step in regaining credibility is not saying incredible things
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Larry Summers, a former US Treasury secretary, has warned that the UK government’s ‘utterly irresponsible’ plans could drag the pound below parity against the euro, as well as the dollar.
Summers has heavily criticised chancellor Kwasi Kwarteng for undermining credibility by saying ‘incredible things’ about planning more tax cuts -- those weekend comments pushed the pound to a record low of $1.0327 on Monday.
Summers says he was “very pessimistic about the consequences of utterly irresponsible UK policy on Friday,” but didn’t expect the markets to get so bad so quickly.
Summers also suggests the Bank of England should have taken more decisive action, rather than its ‘timid’ statement yesterday. » | Graeme Wearden | Tuesday, September 27, 2022
Pound comes under new pressure after Bank of England fails to raise rates: Central bank stops short of emergency rate hike and instead says it will make full assessment in November »
