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Ukraine War, Excess Stimulus Raise 1970s Stagflation Risk, Summers Says

  • Former Treasury chief says Fed must slow U.S. economy
  • Summers says soft landing is possible but ‘not what I expect’
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Former U.S. Treasury Secretary Lawrence Summers says the Fed will have to make “difficult choices” to address the dangers of weak growth and high inflation.  

Source: Bloomberg

Former Treasury Secretary Lawrence Summers said that the war in Ukraine and the legacy of Washington pumping too much stimulus last year means an increasing danger of stagflation for the U.S. economy.

“We’re now facing real risks of a 1970s-type scenario,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin on Friday. “Not quite as high levels of inflation as we saw in the 1970s, but the same kind of broad phenomena of stagflation.”