Central Banks
Summers Says Fed’s Interest Rate Hikes Aren’t Working as in Past
- Ex-Treasury chief says Fed hikes may not be working as in past
- Summers says supply-demand imbalance helping drive yields up
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Former Treasury Secretary Lawrence Summers said the surge in US job growth last month is “great news” for now but also suggests the Federal Reserve’s interest-rate hikes aren’t working as they used to, raising the danger of a hard landing for the economy.
“We’ve got something of an ‘Energizer bunny’ economy,” Summers said on Bloomberg Television’s Wall Street Week with David Westin, referring to an ad campaign for a super long-lasting battery. But with job growth if anything accelerating, it makes the hard landing risk perhaps “look a little greater,” he said.