TIP - Ex-Treasury Secretary Larry Summers Warns Trump's Re-Election May Push Mortgage Rates Beyond 10%: 'Never Been A Presidential Platform So Self-Evidently Inflationary' | Benzinga
Former Treasury Secretary Larry Summers, who is on the “inflation truthers” camp, said on Sunday there is a real risk of inflation spiking if Donald Trump wins a second term.
Trump Bad For The Economy? Trump’s re-election could mean the U.S. could see another bout of inflationary pressure, Summers told The Atlantic. “There has never been a presidential platform so self-evidently inflationary as the one put forward by President Trump,” he said. “I have little doubt that with the Trump program, we will see a substantial acceleration in inflation unless somehow we get a major recession first,” he said.
Incidentally, Summers was among the economists, who warned the [Joe] Biden administration of the risk of rising inflation when it approved a massive COVID-19 relief package in 2021. The former Treasury official now told The Atlantic that he wasn’t sure of the success of the policies of Biden and the Federal Reserve to bring inflation down to the central bank’s 2% target.
Summers, however, was more downbeat about a Trump term. Trump’s blueprint would make inflation worse, he reportedly said.
Among the components of Trump’s economic agenda that will likely have an upward thrust on inflation are “compromising the independence of the Federal Reserve Board, enlarging the federal budget deficit by extending his 2017 tax cuts, raising ...