Summers Warns on Inflation Reacceleration Risk With Too-Hot Wage Growth

Former Tresaury secretary flags trend in wages is accelerating
Summers says some sense of ‘fear’ may be needed on US deficit

WATCH: Summers says the acceleration in wage growth seen in the July jobs report is “not consistent with 2% underlying inflation, or close” Source: Bloomberg

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By Chris Anstey

August 4, 2023 at 2:56 PM UTC

This article is for subscribers only.

Former Treasury Secretary Lawrence Summers said that while the path to a soft landing for the US economy looks more likely than it previously did, his concern now is the danger of inflation picking up steam again.

“I don’t think we can yet be confident that we’re not going to see a real acceleration of inflation at some point down the road,” Summers said on Bloomberg Television’s Wall Street Week with David Westin. “That’s the thing that I’m focused on.”