Prime Minister Liz Truss on Thursday ruled out a U-turn on the biggest set of tax cuts since 1972, saying “this is the right plan.”
Summers, who served at the Treasury during the Clinton administration and was director of the White House National Economic Council under President Barack Obama, said that given the current risks, “this is certainly not a time when very many firefighters should be taking vacations.”
“When a country as major as Britain is going through something like this, that is something that can have consequences that go beyond,” Summers noted.
He likened financial troubles to tremors before an earthquake. While sometimes the tremors pass, that’s not always the case -- as was true in 2007, he said.
This article was provided by Bloomberg News.