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Larry Summers Sees Risk of US Unemployment Needing to Climb Toward 6%

  • Former Treasury secretary blasts latest set of Fed forecasts
  • Fed, investors still underestimate ‘gravity’ of situation

Former Treasury Secretary Lawrence Summers renewed his criticism of Federal Reserve economic forecasts, saying that the US unemployment rate would need to increase by much more than policy makers anticipate in order to quell inflation.

“I still think the Fed and most market participants are underestimating the gravity of our situation,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin.