Summers Sees ‘Meaningful Chance’ Next Fed Move Will Be a Hike
- Former Treasury chief flags housing, services price pressures
- Summers says benign soft-landing scenario called into question
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Former Treasury Secretary Lawrence Summers said that persistent inflationary pressures evident in the latest data suggest that there’s potential for the next Federal Reserve policy move to be to raise interest rates, not lower them.
“There’s a meaningful chance — maybe it’s 15% — that the next move is going to be upwards in rates, not downwards,” Summers said on Bloomberg Television’s Wall Street Week with David Westin. “The Fed is going to have to be very careful.”