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US Encourages UK to Dial Back Tax-Cut Plan

  • UK bond plunge has forced emergency Bank of England purchases
  • Selloff in gilts, pound reverberated across world markets
Bloomberg business news
UK's Truss on Tax Cuts: This Is the Right Plan (Audio)

The Biden administration is alarmed over the market turmoil triggered by the new UK government’s economic program and is seeking ways to encourage Prime Minister Liz Truss’s team to dial back its dramatic tax cuts.

Officials inside the US Treasury Department are concerned at the volatility in financial markets and potential spillovers to the broader economy, and are working through the IMF to apply pressure on Truss’s government, according to people familiar with the matter.