Economics
Fed Inflation Risk Puts Summers at Odds With Krugman
- Ex-Treasury chief says jobs data underscore price concerns
- Argues it’s better to slow the economy now than to wait
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Former U.S. Treasury Secretary Lawrence Summers said he disagrees with fellow economist Paul Krugman’s argument that the Federal Reserve should bide its time before raising interest rates because inflation will prove transitory and it’s not worth risking a recession.
Speaking on Bloomberg Television’s “Wall Street Week” with David Westin, Summers reiterated his view that the Fed is too focused on removing slack from the labor market and, by doing so, is allowing the economy and inflation to overheat.