Breaking: Liz Truss Resigns As UK PM, Market Volatility Expected
Liz Truss has announced that she will resign as the Prime Minister of the United Kingdom. With this resignation, Liz Truss becomes the shortest PM in UK history. Truss resigned as conservative party members lost faith in her ability to run the UK economy.
Why Liz Truss Is Resigning As UK PM
Since the start of her term as the PM of the UK, Truss’s administration was mired in controversies. However, the worst came when the UK economy crashed due to her mini-budget. The budget made provisions for unfunded tax cuts. The Great British Pound tanked as market participants began to lose faith in the currency’s stability. Several pension funds were at risk due to market volatility.
Kwasi Kwarteng, the finance minister under Truss, was fired from his position. However, Tory MPs did not have faith in Truss’s ability to steer the ship during the difficult economic period. Rising inflation levels and the growing threat of recession did not help matters. The new finance minister, Jeremy Hunt, rolled back most of the provisions of the Truss budget. However, according to the MPs, the Truss administration could not be saved.
Recently, conservative whips instructed Members of the Parliament to consider a vote on fracking as a confidence motion. However, a junior minister later revealed that it was a clerical mistake and the vote was indeed not a confidence motion. This incident angered several MPs and Conservative Party managers. After this incident, Liz Truss resigned as the PM of the UK.
How The Market Will React
The stock market is expected to show a lot of volatility due to Truss’s resignation. The market will now eye what the next move of the Conservative Tory Party will be. The labor party is already demanding a general election, something which a few Tory members have supported. The UK market will respond sharply as the crisis further unfolds.
The crypto market also shows a strong correlation with the general stock market. Therefore, any volatility in the UK market will also be reflected in the crypto market.
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