Summers Warns Against June Rate Cut, Says It Would Be 'Dangerous and Egregious Error' Given High Inflation

• Former Treasury Secretary Larry Summers warns that a Fed rate cut in June would be a "dangerous and egregious error" given high inflation.

• Summers says current inflation is likely much higher than official statistics when measuring with a more accurate, pre-1983 system.

• He argues the neutral rate is above 2.6%, meaning rate hikes rather than cuts may be warranted.

• Summers was unsurprised by hotter than expected core CPI given faster growth, low unemployment, deficits, and easy financial conditions.

• He says a June cut would be comparable to Fed's mistakes in summer 2021 in underestimating inflation.