TIP - Larry Summers Says June Rate Cut Could Be 'Dangerous And Egregious Error' After Hotter-than-Expected March Inflation Data | Benzinga
The March inflation report came in hotter than expected, stirring concerns among market participants and one section of the economists. Former Treasury Secretary Larry Summers, who is in “Team Persistent” when it comes to inflation, on Wednesday warned of the pitfalls of ignoring pricing pressure in the economy.
Not A Surprise: “I was not hugely surprised by the numbers,” said Summers in an interview with Bloomberg.
Consumer prices rose 0.4% month-over-month and 3.5% year-over-year in March, both coming in one-tenth of a percentage point above expectations. The core inflation came in at a monthly rate of 0.4% and annual rate of 3.8%. These were ahead of the 0.3% and 3.7% rates forecast by economists.
“In an economy that was growing faster than potential, with an unemployment rate that has ...