Fed Should Stay on Course, Not Pause Too Soon, Summers Says

Former Treasury Secretary Larry Summers says in a tweet that the “growing chorus” for the Fed to pause interest rate hikes very soon is “badly misguided.”

The president emeritus of Harvard University says that this is “consensus of economists who have a track record, since COVID, of being dismally wrong on inflation.” He adds that history shows that the Fed has paused too soon many times and asks, “Does anyone really believe that raising rates beyond 4 will bring core inflation from well above 6 percent down below 2 percent?”