Central Banks
Larry Summers Says Fed Will Need to Boost Rates More Than Markets Expect
- Former Treasury chief warns of a high-interest-rate recession
- Summers says economy could slide suddenly, like ‘avalanche’
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Former Treasury Secretary Lawrence Summers warned that the Federal Reserve will probably need to raise interest rates more than markets are currently expecting, thanks to stubbornly high inflationary pressures.
“We have a long way to go to get inflation down” to the Fed’s target, Summers told Bloomberg Television’s “Wall Street Week” with David Westin. As for Fed policymakers, “I suspect they’re going to need more increases in interest rates than the market is now judging or than they’re now saying.”