• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
FinanceU.K.
Europe

Liz Truss will be so bad for the U.K., a former central bank official says, that it’s time to bring back George Soros’ classic and ‘short the pound’

By
Reed Landberg
Reed Landberg
and
Bloomberg
Down Arrow Button Icon
September 21, 2022, 8:04 AM ET
British Prime Minister Liz Truss arrives at Westminster Abbey in London on Sept. 19, 2022, for the State Funeral Service for Britain's Queen Elizabeth II.
British Prime Minister Liz Truss arrives at Westminster Abbey in London on Sept. 19, 2022, for the State Funeral Service for Britain's Queen Elizabeth II.OLI SCARFF—AFP/Getty Images

Former Bank of England policy maker Danny Blanchflower weighed in with criticism of U.K. Prime Minister Liz Truss’s economic plan, concluding that investors should “short the pound.”

The Dartmouth College economics professor who served at the U.K. central bank from 2006 to 2009 has long been critical of government plans that he says don’t go far enough to help people on low incomes.

Following interviews Truss gave in New York about a mini-budget the government is planning to deliver this week, Blanchflower posted on Twitter that he thinks the prime minister’s policy is in disarray.

Done many interviews & written several columns on @trussliz and her disastrous economic policies so far I have said they are in ‘total disarray’ but seems inadequate as pronouncements get worse daily I have never in my fifty years of doing economics seen anything as bad as this

— Professor Danny Blanchflower economist & fisherman (@D_Blanchflower) September 20, 2022

He also expanded on concerns he’s voiced about the outlook for the UK economy, which the BOE expects to tip into recession later this year. In another tweet, he suggested shorting the UK currency, a trading technique where investors can benefit from the decline of a security.

Short the pound

— Professor Danny Blanchflower economist & fisherman (@D_Blanchflower) September 21, 2022

The pound has already taken a hit from concerns about growth, and on Wednesday tumbled to around $1.13, a level not seen since 1985. The currency has sunk 16% so far this year against a broadly stronger US dollar, and some strategists have flagged the risk of a fall toward parity as the UK faces a more painful recession than other developed countries.

Investors are worried that Truss’s plans mean the government will borrow heavily to fund its economic reboot effort, which could add pressure to the country’s public finances. The shortfall in the UK’s current account has already surged to the most in Bloomberg data going back to 1997.

That raises questions about whether the UK can continue to rely on the “kindness of strangers,” a concern held by former BOE Governor Mark Carney about the country’s dependence on foreign investment to fund its deficit.

Truss has signaled she plans to cut taxes and do unpopular things to stimulate the economy, setting aside concerns that most benefits from her program will go to those who are already well off. Chancellor of the Exchequer Kwasi Kwarteng is due to set out the government’s new fiscal plans on Friday.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

About the Authors
By Reed Landberg
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

Latest in Finance

Big TechGoogle
Microsoft, Apple, Meta and Amazon’s stocks are lagging the S&P 500 this year—but Google is up 62% and AI investors think it has room to run
By Jeff John Roberts and Jeremy KahnDecember 17, 2025
38 seconds ago
Personal FinanceSavings accounts
Today’s best high-yield savings account rates on Dec. 17, 2025: Earn up to 5.00% APY
By Glen Luke FlanaganDecember 17, 2025
60 minutes ago
Personal FinanceCertificates of Deposit (CDs)
Earn up to 4.18% APY with the best CD rates available today, Dec. 17, 2025
By Glen Luke FlanaganDecember 17, 2025
60 minutes ago
Personal FinanceReal Estate
Current ARM mortgage rates report for Dec. 17, 2025
By Glen Luke FlanaganDecember 17, 2025
60 minutes ago
Personal FinanceReal Estate
Current refi mortgage rates report for Dec. 17, 2025
By Glen Luke FlanaganDecember 17, 2025
60 minutes ago
Personal Financemortgages
Current mortgage rates report for Dec. 17, 2025: Rates mostly steady
By Glen Luke FlanaganDecember 17, 2025
60 minutes ago

Most Popular

placeholder alt text
Economy
America's $38 trillion national debt 'exacerbates generational imbalances' with Gen Z and millennials paying the price, warns think tank
By Eleanor PringleDecember 16, 2025
21 hours ago
placeholder alt text
Success
Meetings are not work, says Southwest Airlines CEO—and he’s taking action, by blocking his calendar every afternoon from Wednesday to Friday 
By Preston ForeDecember 15, 2025
2 days ago
placeholder alt text
Success
'I had to take 60 meetings': Jeff Bezos says 'the hardest thing I've ever done' was raising the first million dollars of seed capital for Amazon
By Dave SmithDecember 15, 2025
2 days ago
placeholder alt text
Future of Work
The job market is so bad, people in their 40s are resorting to going back to school instead of looking for work
By Sydney LakeDecember 16, 2025
1 day ago
placeholder alt text
Innovation
An MIT roboticist who cofounded bankrupt Roomba maker iRobot says Elon Musk's vision of humanoid robot assistants is 'pure fantasy thinking'
By Marco Quiroz-GutierrezDecember 16, 2025
18 hours ago
placeholder alt text
Politics
Exclusive: After citations against Elon Musk’s Boring Company were suddenly withdrawn, federal regulators are now investigating Nevada OSHA
By Jessica MathewsDecember 16, 2025
9 hours ago

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.