Larry Summers says Fed will need to boost rates more than markets expect

Bloomberg/Chris Antsey/12-2-2022

“’We have a long way to go to get inflation down’ to the Fed’s target, Summers told Bloomberg Television’s ‘Wall Street Week’ with David Westin. As for Fed policymakers, ‘I suspect they’re going to need more increases in interest rates than the market is now judging or than they’re now saying.’”

USAGOLD note: Summers says a 6% peak rate is “scenario we can write.” And if the inflation rate is still running near 8%, the 1970s experience tells us that it still will not be enough to douse the inflationary fires.