Given the credibility blows and errors that have occurred, the Fed is in the best possible position with these remarks to handle the situation moving forward. — Craig Summers
Lawrence Summers, a former U.S. Treasury secretary, gave the Federal Reserve some unusually high praise on Friday, calling Jerome Powell's most recent vow to do so a "statement of being resolute."
In a speech in Jackson Hole, Fed Chairman Powell claims that people and businesses will suffer as a result of bringing down inflation.
Summers told Bloomberg that the Fed chairman had accomplished "what he needed to do" and that it was obvious that the Fed's "overwhelming priority" is slowing inflation from reaching its fastest rate in four decades. Powell had just finished speaking at the annual central-bank symposium in Jackson Hole, Wyoming.
Powell hinted that the Fed will likely keep raising interest rates and hold them high for some time in order to combat inflation in a succinct six-page speech. Even though individuals and businesses may experience economic hardship, he claimed that the central bank's "overarching focus for now" is on getting the annual inflation rate down to the 2% target.
Summers, a former director of the National Economics Council, former director of the U.S. Treasury Department, former president of Harvard University, and former chief economist at the World Bank, has repeatedly criticized the Fed for missing the recent spike in inflation and then reacting slowly to address it.
For instance, according to the New York Post, earlier this week Summers said that the Federal Reserve is "confusing" investors by failing to explicitly state that unemployment is likely to increase during its battle against inflation.
Here are a few of the reasons Larry Summers wants to fire 10 million employees in June 2022:
The Fed "doesn't want to admit that it's probably not so rational to anticipate" that it can "bring inflation all the way down without unemployment up," according to Summers, who made this claim a week ago. That adds considerable uncertainty to all of their assertions.
Previously, in June 2022: Here are a few of Larry Summers' justifications for his desire to fire 10 million people:
The Fed "doesn't want to admit that it's probably not so rational to anticipate" that it can "bring inflation all the way down without unemployment up," according to Summers, who made this claim a week ago. That adds considerable uncertainty to all of their assertions.
Here are a few of the reasons Larry Summers wants to fire 10 million employees in June 2022:
Summers has argued that in order to successfully combat inflation, unemployment must rise to at least 5%. He has also noted that the recent gains in the U.S. stock and bond markets are evidence that investors do not yet perceive the Fed's efforts to cool the economy through tighter monetary policy as limiting economic growth.