Central Banks
Summers Urges Fed to Deliver Stark Message on Economic Pain
- Former Treasury chief speaks on fears, hopes for Jackson Hole
- Summers says easing in financial conditions must be a worry
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Former Treasury Secretary Lawrence Summers called on the Federal Reserve to deliver a clear message saying it will need to impose “restrictive” monetary policy that drives up the US unemployment rate in order to quell inflation.
“My worst fear would be that the Fed will continue to be suggesting that it can have it all in terms of low inflation, low unemployment and a healthy economy,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin.