Summers: There’s Not Much ‘Evidence of a Basic Downwards Trend in Inflation’ and Fed ‘Has Considerably More Work to Do’

During an interview broadcast on Friday’s edition of Bloomberg’s “Wall Street Week,” a Harvard professor, economist, director of the National Economic Council under President Barack Obama, and Treasury Secretary under President Bill Clinton Larry Summers said: “We don’t have a lot of evidence.” that there is an underlying downtrend in inflation”, and the Fed “has to do a lot of work”. There is a possibility that the final interest rate will be close to 6%.

Summers stated, “I think more broadly, it seems to me that we don’t have a lot of evidence for an underlying downtrend in inflation. The inflation story seems to me to be a fluctuation around a core inflation rate of 4.5 or 5. And if that’s close to the right, that indicates The Fed has a lot of work to do.”

He added, “I suspect there is a very good chance that we will need to get to a final rate near 6. After all, we have inflation close to 5% and we have interest rates at around 5%. So interest rates and inflation in the same range does not indicate A lot of pressure to bring inflation down. So, I’m very open to changing my mind and I think confident statements about these things are wrong.”

He follows Ian Hanchett on Twitter @employee

DISCLAIMER:- Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email at The content will be deleted within 24 hours.

Read original article here

Leave a Comment