Economics

Larry Summers Says Risk of 2022 Recession Climbing, May Damp Inflation

  • Former Treasury chief says recession could alter Fed’s course
  • Summers confident central banks will meet inflation targets
WATCH: Former US Treasury Secretary Lawrence Summers sees an increasing risk that a recession will start this year.Source: Bloomberg
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Former Treasury Secretary Lawrence Summers said that there’s an increasing risk the looming recession he’s anticipated will start sooner, in 2022, and that inflation may cool as a result.

“The risks of a 2022 recession are significantly higher than I would have judged six or nine weeks ago,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “If the economy did go into recession in the next six to nine months, then you’d probably see a reduction in inflationary pressures.”