Summers Fears for Fed’s Ability to Remove ‘Punchbowl’
The US Federal Reserve System and other central banks may not be able to tighten monetary policy to counter rising prices, should the current rise in inflation prove to be less than transitory, according to Lawrence Summers, former US Treasury Secretary.
In an interview with Central Banking, Summers stresses he does not view current Fed officials as fearful of doing their job, but rather that the scope of economic shocks and changes to the Federal Open Market Committee could make containing inflation a challenge.
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Central Banking by Central Banking staff. Published October 11, 2021.