The Fed will have to raise interest rates sooner than expected

(Teleborsa) – According to the former US Treasury Secretary Lawrence SummersAnd the The Federal Reserve He will find it Had to raise rates Earlier than expected and when the markets expect. The economist said in an interview with Bloomberg that overheating in the economy and rising prices could push the Fed to act as early as next year.

Summers, who was also director of the National Economic Council in the first Obama administration, is one of the most important observers in the United States Economic assistance plan of 1900 billion dollars That the Democrats want to agree to. Claims that the scale will go in Too much liquidity in the economy, which leads to inflationHe recommends focusing on long-term investments instead.

The current refusal by the Federal Reserve to consider changing its monetary policy sooner than expected shows that Fed officialsThey don’t realize the age they are entering“If the Fed does not fail, it will have to start realizing the truth about these challenges. And that will involve a major change of tone,” Summers said.

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