Bank of England intervenes to stabilize U.K. economy as pound crashes

As the British pound drops and Prime Minister Liz Truss plans unfunded tax cuts for the rich, the Bank of England is moving to stabilize finances in the U.K.

LONDON — If anyone thought Britain was due a period of calm after Boris Johnson’s tumultuous premiership, no one told his successor.

The country was already facing an ugly menu of challenges. But the proposed solution by new Prime Minister Liz Truss has quickly sent the economy spiraling into chaos, threatening consequences both immediate and long-lasting for many Britons.

Her Conservative government's 45 billion pound ($48 billion) plan to slash taxes — particularly for the country’s highest earners — has sent shock waves through financial markets, causing the pound to plummet and leaving Truss' own political future in sudden doubt just three weeks after taking office.

Prime Minister Liz Truss's government unveiled a financial plan last week that sparked market concern and public criticism. Charles McQuillan / Getty ImagesAfter days of turmoil, the U.K. drew a rare stinging rebuke from the International Monetary Fund, which urged the government to "re-evaluate" a plan that may fuel already-soaring inflation and increase economic inequality.

The Bank of England, the U.K.'s central bank, made its own emergency intervention Wednesday, announcing it would buy up as much government debt as needed in an effort to restore stability.

https://www.nbcnews.com/news/world/bank-england-uk-pound-crash-tax-cuts-rcna49549

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