Larry Summers says increases in the Fed's preferred inflation gauge are `very troubling' as he warns of a likely recession
Former US Treasury Secretary Larry Summers described the latest rise in the Federal Reserve's preferred inflation gauge as"very troubling" as he renewed his messaging that a recession was likely.rose by 5.4% in January, quickening from December's 5.3% pace, data released Friday showed, in an apparent resurgence of price pressures.
"They suggest that the @FederalReserve may have made much less progress in containing underlying inflation than has been generally supposed and make a soft landing look less likely," SummersSummers added that he would now be quite surprised if the US was able to avoid a recession while bringing down inflation, citing inventories, high employment relative to output and depleted savings as reasons the economy could hit what he called an air pocket.
But growing signs that inflation may prove sticky have caused him to return to a more bearish stance.that markets were on for an"economic collision" as the central bank struggles to moderate price pressures further.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Larry Summers: Why sanctions on Russia aren't effective | CNN BusinessFormer Treasury Secretary Larry Summers said price caps on Russian energy should be stiffened up to maximize the impact of sanctions on the country as the war in Ukraine hits a year.
Read more »
Breitbart Business Digest: 50-Year-Old ‘Confidential’ Fed Memo Reveals Secret Debt Ceiling Escape HatchA formerly-confidential memo from half a century ago suggests that the Federal Reserve may have a failsafe in the event of a protracted debt ceiling fight. |
Read more »
Washington business owners fed up with crime turn to the Second Amendment for protectionBusiness owners in the Seattle, Washington, area increasingly purchased firearms in 2020 as protests and riots spread, and are reportedly still armed to protect against crimes.
Read more »
Inflation is doing a crab walk and Fed officials fear its pinch | CNN BusinessThe possibility of a 2023 market rally ground to a halt last week amid an onslaught of unfortunate inflation and economic data that spooked investors and increased the likelihood that the Federal Reserve will continue its economically painful rate hikes campaign for longer than Wall Street hoped.
Read more »