On Wednesday's broadcast of CNN's "OutFront," economist Larry Summers reacted to the Federal Reserve's inflation policy announcements by stating that the Federal Reserve still has "a long way to go" and that combatting the inflation problem is "going to require substantially more than what the Fed held out as a prospect today."
Summers said, "I would look at it that they were behind the curve and that they tried to move to catch up today. The market rendered a verdict. Expected inflation, as judged by the market, went up, not down after their action. That says to me that they've got a long way to go. If you look at it, real interest rates fell by 2 percentage points from the beginning of last year when the unemployment rate was in the 8% range and inflation was in the 2% range, to the beginning of this year, when we had epic job shortages and really high inflation. The least we should be thinking about is reversing that change in real interest rates, and that's going to require substantially more than what the Fed held out as a prospect today."
Follow Ian Hanchett on Twitter @IanHanchett
- Powell pledges flexible Fed policy, won't quit if Trump asks him
- Trump's food stamp proposal would add work requirements in some states
- Fed’s Brainard Sees Reasons for Economic Optimism but Flags New ‘Crosscurrents’
- Powell's plain English Fed may need more nuance: ex-official
- Markets rebound as Fed cools on early rate rises
- After the Fed's likely rate hike this week, all bets are off
- Fed rate moves for 2019: The suspense is building
- Fed's Powell Urges Patience as US Economy's ‘Narrative' Unfolds
- Investors Hoping for a Message of 'Patience' From the Fed
- Walking a fine line, Fed raises rates
- Fed finding maximum employment hard to measure these days
- Time for new hand at helm of Fed
- Warren bill would get feds into generic drug manufacturing
- What the Fed does next could save your 401(k) — or drive it even lower
- US stocks sink again amid shutdown fears, Fed angst
- How is the U.S. economy doing now? Shutdown makes it hard to answer
- Army considers German-built future armored combat vehicles
- Trial-by-combat lawyer Luthmann could be close to deal with the feds
- Stocks surge after Fed chair Jerome Powell hints of limit to rate hikes
- Powell faces early reckoning on Fed's $4-trillion question
Summers: Combatting Inflation Will 'Require Substantially More' Than What Fed Is Doing have 392 words, post on www.breitbart.com at December 16, 2021. This is cached page on TechNews. If you want remove this page, please contact us.