Widely regarded economist Larry Summers has said again that the Federal Reserve should keep raising rates aggressively. The former U.S. Treasury Secretary and Harvard President insists this is the only way to tame inflation. Under the present circumstances, inflation will get much worse. A careful look at his opinion and forecast shows that inflation and a recession could happen simultaneously, leading to the worst economic period since the Great Recession, when the jobless rate reached 10%.<\/p>\n
Summers is a staple on CNBC, Bloomberg and CNN Business. His messages are almost everywhere, at least as far as the business community is concerned. For all anyone knows, members of the Federal Reserve tune in every time he is on the air.<\/p>\n
Summers recently said on CNN, \u201cI look at economic history and I see that there are many times when the Fed didn\u2019t do enough and so inflation re-accelerated, but I can\u2019t find any times in the last 60 years when the Fed did too much.\u201d That means his measurement extends back to when John F. Kenney was president. He said this in the shadow of another Fed interest rate increase of 0.75%, the fourth time it hiked rates as much this year.<\/p>\n \t\t\t\t