Summers Sees Inflation-Breakout Risk

Former Treasury chief points to labor market measures

Summers sees risk that the next Fed policy move may be to hike

Summers in early 2021 unsettled some fellow Democrats by warning that President Joe Biden’s $1.9 trillion fiscal package risked fueling inflation.

https://www.bloomberg.com/news/articles/2021-02-07/yellen-summers-spar-about-overheating-risk-in-stimulus-debate

He also criticized the Fed for not paying sufficient attention to price risks. Powell in March 2022 acknowledged that “hindsight says we should have moved earlier” to hike rates. 

https://www.bloomberg.com/news/articles/2022-03-09/jerome-powell-s-tall-order-to-softly-land-the-economy

By contrast, Biden’s team continued to defend their approach. Former Treasury Secretary Janet Yellen argued the bigger mistake 

Yellen Warns Extending Trump Tax Cuts May Roil US Markets - Bloomberg

 would have been not to do enough and have ended up scarring the labor market for many years.

Bloomberg 11 februari 2025 at 20:38 CET

https://www.bloomberg.com/news/articles/2025-02-11/summers-sees-biggest-inflation-breakout-risk-since-2021-errors

Because the economy is doing well, the Fed can take its time

https://englundmacro.blogspot.com/2025/02/because-economy-is-doing-well-fed-can.html

Tillbaka till Rolfs länktips 11 Februari 2025,

https://englundmacro.blogspot.com/2025/02/rolfs-lanktips-11-februari-2025.html