British Pound Sinks to New Lows

British Pound , Sinks to New Lows.

NBC News reports that after Treasury Chief Kwasi Kwarteng promised the biggest tax cuts in 50 years on Sept.

23.

The British pound dropped to an all-time low against the American dollar on Sept.

26.

It fell to $1.0373 before reaching $1.0672 in early London trading.

Since Sept.

23, the British pound has lost over 5% of its value against the U.S. dollar.

The drop comes as the government intends to spend 60 billion pounds, which it will borrow, .

To aid those who are struggling to pay high energy bills caused by Russia's war with Ukraine.

To aid those who are struggling to pay high energy bills caused by Russia's war with Ukraine.

Critics have called the move "reckless," but Kwarteng and Prime Minister Liz Truss believe that putting more money into the pockets of Brits will spur economic growth.

Critics have called the move "reckless," but Kwarteng and Prime Minister Liz Truss believe that putting more money into the pockets of Brits will spur economic growth.

Kwarteng said the government will reveal plans for reducing the U.K.'s debt in the coming months.

.

On Sept.

22, interest rates were raised by half a percentage point by Britain's central bank.