Former Treasury Secretary Larry Summers spoke with Bloomberg TV’s “Wall Street Week”
- economy has a “long way to go” before inflation is under control
- “My sense is that inflation is going to be a little more sustained than what people are looking for”
- the Fed needs “substantially more evidence to get comfort” that inflation is declining
- “I suspect they’re going to need more increases in interest rates than the market is now judging or than they’re now saying.”
Speculating on the peak for Fed funds:
- “Six is certainly a scenario we can write”
- “And that tells me that five is not a good best-guess.”
I'm not sure Summers' opinion is any more valid than a lot of economists. Still, food for thought.
Lemme know in the comments what you reckon.