Central Banks
Summers Says Fed Recovered From ‘Egregious’ Inflation Mistake
- Former Treasury chief says new mistake is estimate of neutral
- Summers would be surprised if Fed cuts as much as market sees
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Former Treasury Secretary Lawrence Summers said that, while the Federal Reserve hit a “low point” in its monetary policy history by failing to act quickly against the 2021 inflation surge, in the end it did enough to right the economy.
“I’ve got to give the Fed credit,” Summers said on Bloomberg Television’s Wall Street Week with David Westin on Friday. “While it wasn’t always obvious that this would be the case, they moved strongly enough and vigorously enough to keep expectations anchored” for inflation, he said.