“Fiscal discipline is important,” US NEC chairman on UK fiscal policy | Reuters

The Chairman of the National Economic Council (NEC) Brian Dees, an economic adviser to the Biden administration, said in a speech on Wednesday that he was not surprised by the negative reaction of the financial markets to the fiscal policies announced by the Truss administration, including a big tax. He said he needed to maintain “financial prudence and financial discipline.” FILE PHOTO: Acts speak during a press conference in Washington, DC, March 2022. REUTERS/Kevin Lamarque/File Photo

WASHINGTON (Reuters) – US National Economic Council (NEC) chairman Brian Dees, an economic adviser to the Biden administration, said in a speech on Thursday that financial markets were responding to fiscal policy, including the big tax cuts announced by the administration British new He said he was not surprised by the negative response from the Fed, pointing to the need to maintain “financial prudence and financial discipline”.

The government’s plan would force the Fed to tighten further, which has led to a negative reaction in the market, he said. “It is particularly important to focus on financial prudence and fiscal discipline,” he said.

The International Monetary Fund (IMF) also said on the same day that Britain’s fiscal policy is large and untargeted, which could increase inequality in the country and undermine the effectiveness of monetary policy, calling for more targeted domestic policies.・ He expressed the view that support for companies should be provided.

Asked if the US economy was headed for recession, Diess noted signs of resilience in consumer and corporate balance sheets, investment and elsewhere, calling it a “complex and in many ways unprecedented” transition. Although it is true that there is, I think there is room to be very confident in the position of the United States in a world of uncertainty.”

The UK and Europe are in a very difficult position and very vulnerable to the effects of energy price volatility, he said.

Russia, he said, has come under increasing pressure from military problems since it invaded Ukraine on February 24, as well as a “cascade of economic problems”.

After his speech, Diess told reporters that the strong dollar reflects the relative strength of the US economy. However, it confirms that the US economy is showing its own strength. “

Asked if he was concerned about the impact of the economic slowdown elsewhere on the US, he pointed to Europe, the UK and China, pointing to a “particularly weak” part of the global growth trajectory that the Biden administration would is “paying great attention to it. “I replied that I was paying for

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