Summers sees near even odds Fed must lift to 6pc or higher

Former Treasury Secretary Lawrence Summers said that the odds are now almost even that the Federal Reserve will have to raise its benchmark interest rate to 6 per cent or more to bring inflation back down to its 2 per cent target.

He said the mixed figures made it a “difficult” release to interpret, but the broader picture shows that the Fed’s current settings for rates “aren’t enough to really apply a lot of restraint”. “I personally don’t think it’s a mistake in this moment for the Fed to put some credibility in the bank by really trying to be as up-to-date and with-the-curve on inflation as they can be,” he said.

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