Posted 12/8/2023, 6:30:00 PM
Summers Urges Caution on Rate Cuts Despite Cooling Economy
- Markets expect Fed interest rate cuts in 2024, but Summers urges caution until there's overwhelming evidence of slowing inflation or economic growth
- Summers said November jobs data was "good" but wage growth raises concern that the fight against inflation isn't over
- Summers believes the Fed should wait for convincing signs of low, locked-in inflation or a turning economy before cutting rates
- Job openings fell in October to the lowest level since early 2021, signaling a cooling labor market
- Economists predict the Fed will cut rates 4-6 times in 2023 as a "recalibration" despite solid economic data