Biden: Truss plans ‘mistake’ amid ‘world inflation’

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PORTLAND, Ore. (AP) – President Joe Biden on Saturday called British Prime Minister Liz Truss’ abandoned tax cut plan a “mistake” and said he was concerned that fiscal policies in other countries could hurt the United States amid “worldwide inflation.” “

Biden said it was “predictable” that the new prime minister was forced to abandon plans for aggressive tax cuts on Friday without identifying cost savings, after Truss’s proposal sent global financial markets into turmoil. It marked an unusual criticism of the US president against the domestic policy decisions of one of his closest allies.

“I’m not the only one who thought it was a mistake,” Biden said. “I don’t agree with the politics, but that’s up to the UK.”

Biden’s comments followed weeks in which White House officials declined to criticize Truss’s plans, though they stressed they were closely monitoring the economic fallout. He spoke to reporters at an Oregon ice cream shop where he made an unannounced stop to promote the candidacy of Democratic gubernatorial candidate Tina Kotek, as Democrats across the country face a tough political environment amid criticism of the GOP’s handling of the economy.

Biden said he was not worried about the strength of the dollar – it has hit a new record against the British pound in recent weeks – which benefits US imports but makes the country’s exports more expensive to the rest of the world.

The president said the US economy is “strong as hell”.

“I’m worried about the rest of the world,” he added. “The problem is the lack of economic growth and sound politics in other countries.”

Biden said: “It’s world inflation, it’s a consequence.”