Summers Warns About Avoiding a ‘Large and Egregious Error’ in Monetary Policy
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Larry Summers warns about avoiding a 'large and egregious error' in monetary policy. He suggests that the Federal Reserve should leave interest rates where they are based on the latest inflation data. The inflation data shows sticky price pressures, indicating an economy growing faster than potential with low unemployment and fiscal stimulus fueled by budget deficits. Summers believes that the neutral Fed funds rate is way above the 2.6% level that the Fed has been using as a North Star.



https://www.bloomberg.com/news/newsletters/2024-04-13/summers-warns-about-avoiding-a-large-and-egregious-error-in-monetary-policy