Summers Warns on Inflation Complacency, Sees More Bond Declines
- Former Treasury chief says June jobs numbers were ‘hot’
- Summers sees further increase in medium-term interest rates
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Former Treasury Secretary Lawrence Summers warned against any sense of achievement by policymakers in bringing inflation down notably from its peak last year, and predicted a further selloff in bonds as investors adjust to the need for more monetary tightening.
“Nobody ever thought we were an underlying 8% inflation country,” Summers said on Bloomberg Television’s “Wall Street Week” with David Westin. “So the fact that the rate has come down shouldn’t be confused with saying that ‘we can be confident that we’re on a path of this all being OK.’”