Posted 2/16/2024, 8:14:00 PM
Summers Warns Fed Against Premature Rate Cuts With Inflation Still High
- There's a 15% chance the Fed's next move could be a rate hike due to high inflation in January, according to former Treasury Secretary Larry Summers
- Key inflation indicators like CPI and PPI rose substantially in January, leading Summers to question the "soft landing" paradigm
- Summers believes economists should look at suburban owner-occupied housing, not just rentals, to gauge shelter price deflation
- Core services prices have increased due to higher wages, which Summers calls "explosive"
- Summers warns against premature Fed rate cuts while inflation remains high, comparing it to stopping antibiotics too soon