Liz Truss, the former prime minister of the UK, nearly caused economic Armageddon in Britain. Only an intervention by the country’s central bank prevented a disaster.
Controversial decisions made by Truss during her tenure destabilized major financial markets, including the important government bond market. Pension funds were also severely affected. Andrew Bailey, the governor of the Bank of England, accused Liz Truss of being careless as prime minister. “We had to step in quickly and we had to step in quite decisively. At the point when we intervened, I can tell you that the messages we were getting from the markets were that it was hours,” Bailey said. He added that the situation was “a very real threat to financial stability.”
Liz Truss resigned as UK prime minister on October 20 after only 45 days in office. In the statement announcing her resignation, she acknowledged that she could not deliver the mandate on which she was elected by the Conservative Party. Four days later, former Chancellor of the Exchequer Rishi Sunak became the new prime minister of the UK.
