31 days ago • Posted by Paul de La Baume
Former US Treasury Sec. sees #recession risk #macro #stocks #Fed #inflation
Former US Treasury Secretary Lawrence Summers paints a grim picture of the future of the US economy. He said it will be challenging to reduce inflation without it leading to a recession. He believes it may be too late already. Investors are very sensitive to inflation data as it's expected to direct the tone of the Fed' policies going forward. Signs of more moderate inflation would be encouraging to reassure markets. More persistent high inflation data is expected to pressure the Fed to act faster in withdrawing stimulus.