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Summers Cites Recession Risk With Inflation at New 40-Year High

  • Former US Treasury chief renews criticism of Federal Reserve
  • Says inflation path depends on Putin’s war and oil prices
Larry Summers
Larry SummersPhotographer: Mark Kauzlarich/Bloomberg

Former Treasury Secretary Lawrence Summers urged the Federal Reserve to realize the seriousness of inflation that has accelerated to a 40-year high when policy makers meet this week, as risk of recession sits on the horizon. 

“When inflation is as high as it is right now and unemployment is as low as it is right now, it’s almost always followed within two years by recession,” he said on CNN’s “State of the Union” on Sunday. When it comes to inflation, “the Fed’s forecasts have tended to be much too optimistic there, and I hope they’ll realize fully the gravity of the problem.”