Posted 2/20/2024, 8:52:00 PM
Summers: High inflation makes Fed rate cut in May unlikely
- Larry Summers said there's a 15% chance the Fed will raise interest rates again rather than cut them soon
- Recent inflation data has been higher than expected, fueling doubt about imminent rate cuts
- Housing costs have not fallen enough to justify rate cuts yet in Summers' view
- Wage growth is driving continued strong core inflation
- Summers believes May is an unlikely timeframe now for the Fed to cut interest rates
