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ormer White House Treasury Secretary, Larry Summers, says that Biden’s economy is headed for disaster and that we should expect a sudden ‘downturn’. According to Summers, it’s as simple as the old saying ‘what goes up, must come down’. Summers noted consumer price index (CPI) data revealed persistent inflation will continue.
Inflation has been at record-breaking highs under Biden and the former Clinton Treasury Secretary says that it spells doom for the economy.
“Look, for me, they were unwelcome, but not wholly unexpected. I think the right reading of the data all along has been that headline inflation fluctuates substantially, but we’ve got a significant underlying inflation problem and that’s what that core inflation rate where the month was faster than the quarter, the quarter was faster than the half year, the half year was faster than the year, and the year was faster than last year, that’s what it showed, and the month was at a close to 7 percent core rate,” Summers said.
“We’ve got a substantial underlying inflation problem,” Summer emphasized. “Another way to see that was the median inflation is higher than it’s been any time since we started collecting the data.”
Summers said he would not be surprised if the Federal Reserve raised interest rates to five percent in order to curb inflation.
“Whether the Fed is going to stay the course and do what’s necessary to contain inflation, we’re gonna have to see how that plays down the road,” he said.
