Efforts by US Federal Reserve System (Fed) leaders to curb inflation by raising the key rate could turn into a recession in the near future, former US Treasury Secretary Lawrence Summers said. , in an interview with CNN on March 6.
Summers called for the policy of fighting inflation by constantly raising the key rate “risk business”because “Historically, we have failed to create soft landings after significant inflation”.
“We will not allow inflation to accelerate and get out of control.Summers added. But I think that the process of reducing inflation at some point will lead to a recession, as it almost always has in the past..
Remember that a significant part of the current US inflationary crisis is the significant increase in fuel and transportation prices within the United States, as well as component shortages due to disruptions in international supply chains.
Source: Rossa Primavera
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