Summers Says Inflation Won’t Get Back to 2% Without Downturn
The former Treasury secretary said he is ‘not that optimistic’ about the fight against rising prices and that the Federal Reserve lost credibility by acting too slowly.
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Former Treasury Secretary Lawrence Summers said taming inflation will likely lead to a “meaningful” economic downturn.
Speaking at the Morningstar Investment Conference in Chicago, he said that fiscal stimulus and low interest rates during the pandemic turned the US from a “2% inflation country to a 5% inflation country.”