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Larry Summers Warns Pound May Tumble Below $1 on ‘Naive’ UK Policies

  • Ex-US Treasury chief fears for UK becoming ‘submerging market’
  • Summers says Japan’s yen intervention risks luring speculators
Bloomberg business news
WATCH: Former US Treasury Secretary Lawrence Summers says UK fiscal policy is based on “naïve, wishful thinking supply-side economics.”Source: Bloomberg
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Former Treasury Secretary Lawrence Summers blasted the economic policies being adopted by newly installed UK Prime Minister Liz Truss, saying they’re creating the circumstances for the pound to sink past parity with the US dollar.

“It makes me very sorry to say, but I think the UK is behaving a bit like an emerging market turning itself into a submerging market,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “Between Brexit, how far the Bank of England got behind the curve and now these fiscal policies, I think Britain will be remembered for having pursued the worst macroeconomic policies of any major country in a long time.”