Economics
Fed Should Hold Immediate Meeting to End Asset Purchases, Summers Says
- Former Treasury chief says Fed behind in fighting inflation
- Ending quantitative easing would show ‘wakeup call’ received
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Former Treasury Secretary Lawrence Summers said that the Federal Reserve ought to hold an immediate meeting to end its quantitative easing program -- now scheduled to end next month -- to underline its determination to tame inflation.
“The Fed should have a special meeting, right now, to end QE,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “It is nothing short of preposterous that in an economy with 7.5% inflation, that in an economy with the tightest labor market we’ve seen in two generations, that the central bank is still as we speak growing its balance sheet.”