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Summers Says Policy Makers May Have Now Cemented Inflation at 4%

  • Investor Steve Rattner says it will take years to work out
  • Fed needs to hike more than two, three times in 2022: Summers

Former Treasury Secretary Lawrence Summers said that U.S. policy makers, by allowing the economy to overheat, have likely cemented inflation rates of 4% or higher, way beyond their long-term target.

“We’ve put in motion, for the first time in 40 years, excessive inflation caused by overheating of the economy,” Summers said on Bloomberg Television’s “Wall Street Week” with David Westin. “We’re going to entrench inflation way above 2% -- perhaps in the 4% or even higher range.”