U.K. Prime Minister Liz Truss fired her Treasury chief and reversed course on a significant part of her economic plan on Friday to bring calm after weeks of political and financial turmoil in the nation.
Truss, who has been in office only six weeks, announced in a press conference that she had scrapped roughly 20 billion pounds worth of tax cuts proposed by the government last month, saying she was acting to "reassure the markets of our fiscal discipline."
The move is the new British leader's second U-turn on tax cuts in as many weeks, after she introduced and then abandoned a controversial income tax cut for top earners as part of her budget plan.
Prior to Friday's presser, Truss axed her close friend and finance minister, Kwasi Kwarteng, replacing him with longtime Conservative lawmaker Jeremy Hunt, who will be the U.K.'s fourth Treasury chief in as many months.
Last month, Kwarteng presented a plan including 45 billion pounds in tax cuts to be paid for by government borrowing, triggering concerns that it would add to the debt and worsen inflation in the U.K., which sits near a 40-year high at 9.9%.
The proposal rattled investors and sent the pound to its lowest-ever rate against the dollar, rocking markets so severely that the Bank of England stepped in to buy 70 billion pounds in bonds to stabilize the currency.
Truss rose to Conservative Party leadership on the promise of slashing taxes and regulations but is now facing backlash, even from some within her own party.
She dodged repeated questions Friday on why she should remain in office when she and Kwarteng were both responsible for the economic plan and the turmoil it sparked.
FOX Business' Ruth Marks Eglash, the Associated Press and Reuters contributed to this report.