Summers Sees Risk Fed Needs to Hike Past 6% to Curb Inflation
- Former Treasury secretary says economy still running strong
- Summers blasts Zandi, others saying inflation is supply-driven
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Former Treasury Secretary Lawrence Summers sees a risk of the Federal Reserve needing to boost interest rates to 6% or higher to bring inflation under control, given a US economy that is still running strong.
“I’m moving upwards my view on the possibilities for the terminal rate,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin, referring to the end-point for the Fed’s rate-hiking campaign. “It’s not what I would expect but it would not surprise me if the terminal rate reached 6 or more,” he said.