From Nasdaq:

Former U.S. Treasury Secretary Lawrence Summers shared insights on the economy with Bloomberg Television. Despite increased interest rates, Summers believes the economy remains strong. He predicts rates will be well above 3% through the rest of the decade. Summers also warned of the risk of inflation re-acceleration despite the robust job report.

Summers’ analysis comes after a substantial increase in job gains for January, showing the economy’s resilience to higher interest rates. He described this as a “very strong number.” Summers highlighted federal debt, decreased impact of housing on the GDP, and potential decline in the durability of goods as contributing factors to the economy’s strength.

Despite the positive outlook, Summers cautioned against dismissing the risk of inflation re-acceleration. He agreed with Fed Chair Jerome Powell’s concerns about price gains stabilizing above 2% and stated, “We have not yet landed this plane.” Summers emphasized the need for caution and acknowledged more benign economic outcomes than those predicted by standard models.



Read more: Larry Summers On Economic Resilience Amid Fed Tightening: ‘Interest Rates Well Above 3% Through The Rest Of This Decade’