Consumers likely to feel the squeeze in months and years to come, says financial commentator

The video discusses the impact of recent tax cuts announced by the Chancellor on the British pound, which has fallen to historic lows. The government's aim to increase economic demand through tax cuts is at odds with the Bank of England's goal to reduce inflation by lowering demand. This has led to market reactions, with the FTSE 250 falling due to concerns over consumer and business spending. Higher interest rates could further squeeze consumers and businesses. While a weaker pound benefits exporters, Brexit-related challenges persist. Multinational companies may gain from a weaker pound, but face global economic headwinds. Confidence in the government's financial management has waned, and the Bank of England may need to intervene to stabilize the situation.

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