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Fed’s Bostic says events in UK could raise economic stress in Europe, U.S.

Woman holds British Pound banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration

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WASHINGTON, Sept 26 (Reuters) – Events in the United Kingdom, with new government fiscal plans triggering a rapid sell-off in the British pound, reflect rising uncertainty about the direction of the country’s economy and could lead to greater economic stress in Europe and the United States, Atlanta Fed President Raphael Bostic said on Monday.

“The reaction to the proposed plan is a real concern and a fear that the new actions will add uncertainty to the economy,” Bostic said in a webcast interview with the Washington Post. “The key question will be what does this mean for ultimately weakening the European economy, which is an important consideration for how the U.S. economy is going to perform.”

“These are just proposals, and we haven’t actually seen what’s going to…

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