THE pound could fall below parity with the dollar and the euro amid the fall-out from the UK’s “mini-budget”, a former US Treasury Secretary has suggested.
Lawrence H Summers, previous chief of the US finance ministry between 1999 and 2001 under President Bill Clinton, criticised Chancellor Kwasi Kwarteng’s vow to cut taxes further and said he didn’t expect markets to “get so bad so fast”.
It comes as Raphael Bostic, the president of the Federal Reserve Bank of Atlanta, said that the UK’s economic instability is “not helping” avoid a global recession.
