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Summers Warns ‘Too Early’ for All-Clear on US Financial Turmoil

  • Former Treasury chief monitoring for stress going ‘non-linear’
  • Summers says it would take till late summer to get confident
Lawrence Summers
Lawrence SummersPhotographer: Stefan Wermuth/Bloomberg

Former Treasury Secretary Lawrence Summers said it’s too soon to be confident that the US has turned a corner on financial troubles that were sparked by the Federal Reserve’s rapid interest-rate hikes.

“When you have a series of earthquake tremors, it’s a fairly long time before you should be in a position to be confident that you’ve seen the last of them,” Summers said on Bloomberg Television’s “Wall Street Week” with David Westin. “That’s why the Fed’s got such a difficult job.”