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Fed Could Hike at All Seven Remaining Meetings This Year, Summers Says

  • Ex-Treasury chief sees potential for an outsize rate hike
  • Summers says ‘grave error’ to allow entrenched inflation
Bloomberg business news
Former Treasury Secretary Lawrence Summers says “anyone who’s not prepared for a rate hike at every meeting--is underestimating the range of possibilities.”Source: Bloomberg

Former U.S. Treasury Secretary Lawrence Summers said investors need to brace for the Federal Reserve to potentially raise interest rates at all seven remaining policy meetings this year and even for it to hike by more than a quarter point in one go.

“Markets have to be prepared for a rate hike in every meeting and they have to be prepared for the possibility that, as the inflation process continues, we might need to have meetings with more than a single 25 basis point rate hike,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin Friday.