Posted 3/8/2024, 7:37:35 PM
Summers Cautions Fed Against Premature Rate Cuts, Says Neutral Rate Likely Higher Than Estimated
- Summers believes the Fed is underestimating the neutral interest rate, saying it's closer to 4% than 2.5%
- He warns the Fed against shifting toward rate cuts too soon
- He says there's an increasing chance the Fed doesn't cut rates this year
- Summers believes Friday's jobs report reflects a strong economy
- He puts the odds of the Fed not lowering rates this year at 15% or slightly higher
