Economics
Summers Says It’s ‘Preposterous’ to Call U.S. Labor Market Slack
- Ex-Treasury chief says unemployment rate is lower than normal
- Summers says Fed must do ‘soul searching’ over ethics rules
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Former U.S. Treasury Secretary Lawrence Summers said that it’s “preposterous” to argue there is excess labor supply in the U.S., and reiterated that the economy is more vulnerable to inflation than many realize.
Summers noted the current unemployment rate of 4.8% is lower than through much of recent U.S. history. He said many people exited the workforce for reasons including the coronavirus changing how they want to live their lives. He also cited extra savings from pandemic-relief packages and continuing health concerns tied to Covid-19.