Economics
Fed ‘Let Us Down Quite Badly’ and Still Unrealistic, Summers Says
- Former Treasury chief says Fed unemployment call ‘implausible’
- Summers sees challenge for Japan in exiting policy framework
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Former Treasury Secretary Lawrence Summers issued one of his harshest criticisms yet of the Federal Reserve’s slowness in moving to raise interest rates, and warned that policy makers are still presenting forecasts that are unrealistic.
“In 2021, our central bank let us down quite badly,” hurting policy makers’ credibility, Summers said on Bloomberg Television’s “Wall Street Week.” “It made mistakes in the core functioning of a central bank,” including in its failure to lean in against fiscal stimulus last year, he said.