Summers Says Bessent Right to Question Fed on ‘Overreach’

Lawrence Summers backed Treasury Secretary Scott Bessent’s questioning of the Federal Reserve’s non-monetary policy activities, saying that there were some areas that are distinct from the broader issue of central bank independence.

“History teaches that the Fed should be autonomous and independent” on setting interest rates and deciding how much fuel to inject into the economy, Summers, a former Treasury and White House National Economic Council chief, said on Bloomberg Television’s Wall Street Week with David Westin. “When the political process gets in their way, the result is more inflation, less economic stability, and ultimately higher interest rates. That lesson is clear.”