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Summers Urges Fed to Keep Tightening, Even as ‘Collision’ Looms

  • Former Treasury chief says it’s important for Fed to deliver
  • Summers says other measures can be taken if mishaps occur
Bloomberg business news
Watch: Summers says we have an inflation problem. Source: Bloomberg
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Former Treasury Secretary Lawrence Summers said it’s important for the Federal Reserve to deliver on the further monetary tightening it has signaled, even in the face of financial risks stemming from its actions.

“It’s a real mistake to suggest that somehow we shouldn’t do the monetary policies that are necessary to avoid inflation becoming entrenched because of concerns about financial stability,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “There’s risk of some kind of financially traumatic event. But I think the chances of something that is large enough to divert the Fed are really quite low.”