Clinton Treasury Chief Sounds Alarm on Inflation: Biden Administration ‘Still Not Fully Recognizing the Gravity of the Situation’
Former Treasury Secretary Larry Summers on Thursday advised the Biden administration to take the threat of rising inflation more seriously.
“I think it’s a mistake to think of this as only an issue about stimulus,” Summers said in a morning interview with CNN’s Brianna Keilar. “It’s also an issue around what’s happened with the Federal Reserve. It’s also an issue around the fact that Covid mutated into the Delta variant. It’s also related to broad geopolitical developments and climate that have impacted on the energy markets.”
“I think we do need to recognize, as people are starting to, that inflation is a serious problem,” he added. “I think if we can resolve the stimulus … debate quickly and pass legislation oriented to increasing supply that’s paid for in what it does — I think those are going to be the best ways forward. I think the Fed is still not fully recognizing the gravity of the situation.”
Summers, who served as Treasury secretary under former President Bill Clinton and as director of the National Economic Council under former President Barack Obama, has been warning about inflation since Biden took office. He prompted his successor, Treasury Secretary Janet Yellen, to claim last month that he was “wrong” about the issue as she asserted “we haven’t lost control” of inflation, despite some analysts predicting inflation could reach a level as high as 5 percent in 2022.
“She expresses confidence that inflation is decelerating and will be back to target levels by the end of next year,” Summers replied on Twitter at the time. “I hope she is right but I think it’s much less than a 50/50 chance.”
“I think it’s almost certain to last for another six to nine months, and it could well last longer,” he added in Thursday’s interview.
Watch above via CNN.
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