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Tax & Spend

Summers Warns on Deficit ‘Doom Loop’ Risk, Oil Price Spike

  • Former Treasury chief sees need for fiscal debate in US
  • Oil prices pose a major ‘wild card’ for inflation, recession
Bloomberg business news
WATCH:Former US Treasury Secretary Lawrence Summers says there are lessons for global policy makers in the turmoil caused by the “extreme incompetence” shown in outgoing UK Prime Minister Liz Truss’s fiscal proposals.  Source: Bloomberg
Updated on

Former Treasury Secretary Lawrence Summers said that policy makers in the US and elsewhere should heed the fiscal lessons from the UK’s recent crisis, and not assume Britain’s troubles were unique.

“That would be a real mistake” to conclude that other countries wouldn’t end up confronting similar challenges, Summers told Bloomberg Television’s “Wall Street Week” with David Westin. The first lesson from the UK is “that things can change extraordinarily fast.”