Larry Summers says U.K. debt market stress could be the 'tremor' signaling global economic 'earthquake'

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Interest rates will have to increase above what the Federal Reserve and financial markets are forecasting in order to tame inflation, former Treasury Secretary Larry Summers says.

Former Treasury Secretary Larry Summers was one of the first prominent economists to warn that federal policymakers were underestimating the threat of persistent inflation, and today he is worried about a global economic crisis that could result from central banks’ efforts to fight rising prices.

Summers said that the combination of rising interest rates, a strong dollar DXY, +0.64%, shortages of energy and food, geopolitical tensions and the challenges of climate change “means somebody should be proposing something substantial here and moving it along.” “If you try to avoid that you just find yourself with a stagflation situation and having to do something harder a little later,” Summers said. “But that’s got all kinds of collateral consequences for the rest of the world.”

 

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how long before the 💩 hits the fan regarding pension problems in this country? The issue has been buried for years

Are people still listening to Larry? *yawn*

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