U.K. Prime Minister Liz Truss resigned on Thursday after a failed tax-cutting budget shook the financial markets and sparked a mutiny inside her own Conservative Party.

"We set out a vision for a low-tax, high-growth economy that would take advantage of the freedoms of Brexit, Truss said in a statement outside Downing Street. "I recognize though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party. I have therefore spoken to His Majesty the King to announce that I am resigning as leader of the Conservative Party," she added.

Truss fought to maintain her grasp on power a day after she lost a second top minister, and open disputes and jostling among her members in parliament revealed a collapse in party unity and discipline.

In barely six weeks as prime minister, Truss was forced to renounce nearly all of her economic agenda after it precipitated a bond market meltdown and a precipitous decline in her and her Conservative Party's support ratings.

Since last Friday, Truss has lost two of the four most senior ministers in the cabinet, sat expressionless in parliament as her new finance minister tore up her economic plans, and was met with shouts of laughter when she attempted to defend her record.

Truss became Britain's fourth prime minister in six years after being voted to head the Conservative Party in September by its members, not the general population, and with the backing of around one-third of the party's legislators. She pledged debt-financed tax cuts, deregulatory measures, and a strong move to the right on cultural and social issues.

Truss' sudden loss of power coincides with the onset of a recession, and her successor finance minister, Jeremy Hunt, is scrambling to find tens of billions of pounds in expenditure cutbacks to calm investors who were alarmed by Truss's policy plans.

While lower than last week's crisis peak, government borrowing rates remain elevated as investors doubt who is in control and if Hunt will be able to restore Britain's once-solid economic image.

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