The United States must be prepared for the risk of a recession with the highest level of inflation since December 1981. Larry Summers, former Treasury Secretary and Economic Adviser to Democratic GovernmentsIn an interview with the show Union State of CNN.
“When inflation is high and unemployment is as low as it is now, it’s always followed by a recession within two years,” Summers said.
Summers added: “The United States must be prepared to respond quickly if a recession occurs.” “I think believers are wrong when they say a year ago that we do not have inflation. They think they are wrong if anyone is overconfident that we are going to avoid a recession,” he said.
The question of faith was then asked Janet Yellen, current U.S. Secretary of the Treasury “There is nothing to suggest a recession in the short term,” he said.
Asked if inflation had peaked or prices would rise further, Summers said “it depends on (Russian) President Putin” and what will happen to oil prices. “There is a risk that (inflation) will rise further and I think it is unlikely to fall very quickly. I think the central bank’s forecasts are more optimistic about that, “he said.
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