Summers Sees Risk of ‘Sudden Stop’ in Economy After Jobs Surge

Former Treasury Secretary Lawrence Summers highlighted the risk of a sudden downturn in the economy after a surge in jobs growth that dwarfed expectations.

“It’s as difficult an economy to read as I can remember,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. A key question after the jump in US payrolls is whether this is all “going to be income that’s going to be spent, that’s going to lift the economy up a bunch?” or do companies at some point conclude they have too many workers and too much inventory “and we’re going to see a fairly sudden stop.”