Investing.com — Despite recent market upheaval, Rachel Reeves remains secure in her role as Chancellor of the Exchequer, according to Cabinet Office Minister Pat McFadden, a close associate of Prime Minister Keir Starmer. The UK’s financial landscape has been rattled in recent days, prompting speculation about the future of the country’s finance minister.
McFadden confirmed Reeves’ position during an interview with Times Radio on Monday. He stated, “Rachel Reeves is the chancellor for a good reason, because she’s the right person to do the job.” When questioned about her potential longevity in office until the fall, McFadden expressed his confidence, saying, “Yes, I do.”
Reeves has been under increasing scrutiny as a worldwide decline in bonds has significantly impacted UK borrowing costs. This has sparked doubts about the government’s fiscal stability. The trend persisted on Monday, with the 10-year gilt yield nearing the previous week’s high of 4.92% — a peak not seen since the global financial crisis in 2008.
The pound has also suffered, leading to questions about whether Reeves will implement any policy measures to address the situation. After a trip to China, the chancellor is expected to return to the UK on Monday. During her visit, she stated that she would take necessary steps to ensure the government adheres to its self-imposed fiscal rules.
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