The New York TimesThe New York Times

Truss defied the markets, and they ruthlessly sealed her fate

By Mark Landler

20 Oct 2022 · 4 min read

Editor's Note

Could Liz Truss’s woes be a harbinger for other countries? This incisive New York Times analysis shows how markets dictated her fate—and how other world leaders may well be next.

LONDON — For Liz Truss, the end came Thursday in a midday meeting with grandees of the Conservative Party. But Truss’ fate as prime minister was all but sealed three weeks earlier when currency and bond traders reacted to her new fiscal program by torpedoing the pound and other British financial assets.

The market’s swift, withering verdict on Truss’ tax-cutting agenda shattered her credibility, degraded Britain’s reputation with investors, drove up home mortgage rates, pushed the pound down to near parity with the American dollar and forced the Bank of England to intervene to prop up British bonds.

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