Central Banks
Fed Probably Needs at Least One More Rate Increase, Summers Says
- Former Treasury chief reiterates view yields will head higher
- Fiscal deficits to put pressure on economy, rates, he says
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Former Treasury Secretary Lawrence Summers said the Federal Reserve probably needs to raise interest rates at least once more, and cautioned that insufficient attention is being paid to the effects of US fiscal deficits.
“My best guess would be that we’re going to need more interest-rate increasing” by the Fed, Summers said on Bloomberg Television’s Wall Street Week with David Westin. There’s not much economic slowing “in the pipeline” at this point, with some estimates suggesting a growth rate in excess of 5% this quarter, he said.