Summers Warns Soft Landing Chances Only 1-in-3, Stocks at Risk

Former Treasury Secretary Lawrence Summers warned against excessive optimism about the US being able to quell inflation without an economic downturn, and reiterated that the Federal Reserve will likely need to raise interest rates further.

“It’s a very narrow window to achieve that soft landing,” Summers said on Bloomberg Television’s Wall Street Week with David Westin. “There is no sign” at this point that this is a “2% inflation economy,” he said, adding that “the Fed is right to be data dependent” in setting its policy.