Larry Summers blasts UK’s ‘utterly irresponsible’ fiscal policy

LONDON — Former U.S. Treasury Secretary Larry Summers on Tuesday warned that the U.K. has lost sovereign credibility after the new government’s fiscal policy sent markets into a tailspin.

The British pound hit an all-time low against the dollar in the early hours of Monday morning, before recovering slightly on Tuesday, while the U.K. 10-year gilt yield rose to its highest level since 2008 as markets recoiled at Finance Minister Kwasi Kwarteng’s so-called “mini-budget” on Friday.

In a series of tweets Tuesday morning, Harvard professor Summers said that although he was “very pessimistic” about the potential fallout from the “utterly irresponsible”…