Britain has a new finance minister, Jeremy Hunt, and he unveiled a new economic plan Monday. Hunt replaces Kwasi Kwarteng, who was sacked after just weeks on the job because his tax-cut-heavy economic plan sent UK bonds and the pound spiraling. Hunt on Monday said the new plan will eliminate almost all of the tax cuts proposed under Kwarteng’s budget. Prime Minister Liz Truss’s government, which has only been in office just over a month, is already on thin ice over the market turmoil, but it’s likely she will stay in office for the time being. UK Conservative Party rules say a new leadership election can’t be held for a year.
Last week, economic data fed the market’s volatility. Inflation remains red hot, so it doesn’t look like the Federal Reserve will ease back on its aggressive push to cool the economy.
