Larry Summers, Harvard professor, economist, director of the National Economic Council under President Barack Obama and Secretary of the Treasury under President Bill Clinton, defended the “central trend” of the United States in an interview published Friday during Bloomberg’s “Wall Street Week”. The economy is prone to stagflation. He also said that Federal Reserve Chairman Jerome Powell “doesn’t think the scale of the recession he’s willing to tolerate is a recession big enough to do what’s necessary about inflation.”
Summers said: “There are a lot of unexpected economic consequences that you can’t say with certainty. But I would be very, very surprised if we see that inflation drops to 2.5% without going into a recession. I think we’re more likely to see a recession, but we won’t see inflation drop to 2.5%. That’s why I think the main trend is stagflation. And I think the recession that President Powell says he’s prepared to endure should be big enough to deal with inflation.”
Source: Breitbart
