Trusonomics is already slaying the demons of stagflation. We need more of it

Volatility has stalked the UK markets this past week since the mini-Budget, much to the delight of the many opponents of the Truss-Kwarteng revolution. It is revealing how these critics have reveled in what they saw as the discomfiture of not just the new Government but also of the UK economy in general – as … Read more

Liz Truss must hold her nerve as the world tips into a calamitous recession

For the past 25 years, and especially since the financial crisis, the global economy has taken a disastrous wrong turn for which we are about to pay a hideous price. In one of the gravest intellectual errors since communism, many of the world’s cleverest people thought they had discovered the secret to perpetual prosperity. Forget … Read more

There is no sterling crisis, except in the minds of idiots

It seems any stick will do to beat up on the Government’s new fiscal package. Seeing that there is no logic in attacking fiscal solvency, because the Chancellor has explicitly committed himself to it, the mob of critics have fastened on the fall in sterling as the “canary in the coal mine” that denounces the … Read more

Liz Truss’ honeymoon canceled as pound plummets and UK borrowing costs soar – POLITICO

Press play to listen to this article LIVERPOOL, England — As an inexperienced leader taking charge of a country in crisis, Liz Truss knew she needed to hit the ground running this month. But three weeks into her fledgling premiership, the new UK prime minister finds herself scrambling to stay ahead of events as last … Read more

Sterling sent to new 37-year low as Asian markets deliver more punishment for tax cuts

Analysts at Deutsche Bank asserted on Friday that Threadneedle Street needed to carry out a “large rate hike” as early as this week to “regain credibility with the market”. Despite the turbulent atmosphere, the Chancellor confirmed on Sunday that the Government planned to introduce further tax cuts in the new year on top of the … Read more

Kwarteng warns Bank of England over blaming Ukraine war for inflation

Kwasi Kwarteng has issued a warning to the Governor of the Bank of England, as he vows in Friday’s mini-Budget to break the “cycle of stagnation”. The Chancellor told Andrew Bailey that claims that near double-digit inflation was mainly driven by the war in Ukraine were less credible now that the Government had taken action … Read more

Bank of England Makes Biggest Rate Rise Since 1995 as Inflation Soars

LONDON—The Bank of England raised interest rates by the most in a quarter-century Thursday even as it predicted the UK economy will fall into recession later this year, underscoring global central banks’ urgency in fighting a surge in inflation. The rate increase to 1.75% from 1.25% was the largest since 1995 and the first half-point … Read more

Markets bet interest rates will double by the end of 2022

Markets are betting on the Bank of England doubling interest rates by the end of 2022 as investors brace for the biggest increase in 27 years at this week’s meeting. Officials on Threadneedle Street are expected to vote for a rare 0.5 percentage point increase to interest rates on Thursday as the Bank comes under … Read more

PM and Chancellor unified in announcing ‘single biggest tax cut in a decade’

B oris Johnson and Rishi Sunak have penned a joint article to outline what they are calling “the single biggest tax cut in a decade” in a show of unity on the cost-of-living crisis. Writing in the Sun on Sunday, the Prime Minister and Chancellor said when the National Insurance threshold rises overnight this coming … Read more

Powell Says Fed Must Accept Higher Recession Risk to Combat Inflation

Federal Reserve Chairman Jerome Powell said he was more concerned about the risk of failing to stamp out high inflation than about the possibility of raising interest rates too high and pushing the economy into a recession. “Is there a risk we would go too far? Certainly there’s a risk, ”Mr. Powell said Wednesday. “The … Read more