Summers Sees Turbulence Ahead With Market Complacent on Inflation

Former Treasury secretary says Fed signaling determination
Summers says inflation still at ‘unimaginable’ levels

Former Treasury Secretary Lawrence Summers says the market consensus view on the path of US inflation is “substantially” too complacent. “Inflation today is at levels that would have been unimaginable for inflation two years ago. — we haven’t come all the way down or got this fully under control, “ he says on Bloomberg Television’s “Wall Street Week” with David Westin.Source: Bloomberg

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By Chris Anstey

February 10, 2023 at 3:43 PM UTC

Updated on

February 10, 2023 at 4:10 PM UTC

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Former Treasury Secretary Lawrence Summers warned that complacency is setting into financial markets about inflation, and that the Federal Reserve may need to tighten further than what investors are currently expecting.

“We’re headed into what’s likely to be a turbulent period,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “I’m not sure we’re on a trajectory that’s going to get us to 2% inflation without more interest-rate increases than the market is now anticipating.”