Prime Minister Liz Truss took office last month promising to reenergize the British economy and put the nation on a path to “long-term success.” Instead, her tenure so far has been marred by turmoil as mortgage rates soared, the pound fell to record lows and chaos in bond markets threatened the country’s financial stability.
While Truss came to power at a difficult time — facing a cost-of-living crisis, the war in Ukraine and the lingering effects of the COVID-19 pandemic — her decision to announce 105 billion pounds ($116 billion) of tax cuts and spending increases without providing details on how she would pay for it spooked markets concerned about soaring public debt.
