TIP - Larry Summers Says Market Reposing 'Too Much Confidence In Mother Fed' Warns 2% Inflation Target Might Not Be Met Without Significant Downturn | Benzinga
The financial markets received this week tamer producer and consumer prices inflation with a lot of verve, as is seen from the rally in most risky bets. Former Treasury Secretary and economist Larry Summers, however, suggested that the inflation fight may not have been won yet.
What Happened: “Transitory factors” have been an element in the faster-than-expected slowdown in U.S. inflation, said Summers in an interview with Bloomberg. The transitory factors that were pushing inflation up from bottlenecks that are now mean reverting and are pushing inflation down, he added.
“Given how strong the economy has been, there's still a surprise in what's happened to inflation,” the economist said.
Delving into the reasons why inflation slowed, Summers cited the Jerome ...