Summers ‘Appalled’ at Idea of Presidential Sway Over Fed Policy

  • Former Treasury chief warns against political interference
  • Summers says half-point Fed cut next month may be appropriate

Larry Summers

Photographer: Stefan Wermuth/Bloomberg
Lock
This article is for subscribers only.

Former Treasury Secretary Lawrence Summers warned against incorporating any presidential sway over the setting of US monetary policy, saying it would only end up damaging the economy over time.

“Having politicians involved is a fool’s game,” Summers said on Bloomberg Television’s Wall Street Week with David Westin Friday. “You end up with higher inflation and a weaker economy.”