Summers: Fed Risks Overstimulating Economy With Unneeded Rate Cuts

• Summers criticized Fed for signaling further rate cuts despite strong economy and inflation projections • Believes Fed's estimate of neutral rate is too low, distorting how restrictive policy actually is • With economy surprising on high side, questions need to cut rates given lengthy period for hikes to work • Unemployment below Fed's full employment estimate; inflation exceeding 2% target
• Financial conditions very loose; economy growing faster than potential