Summers: ‘Very Substantially Slow’ Economy Is ‘Most Likely’ Outlook for Early Next Year, We Won’t Get Close to Fed’s Inflation Goals

On Tuesday’s broadcast of CNN’s “Don Lemon Tonight,” economist, Harvard Professor, Director of the National Economic Council under President Barack Obama, and Treasury Secretary under President Bill Clinton Larry Summers said that inflation will not “get that close to the 2% that is the Fed’s central objective.” And that while it’s not for certain, “probably early next year, the most likely thing is that you’ll see the economy will be very substantially slow and perhaps you’ll see a period of negative growth.”

Summers stated, “I think what you’re most likely to see is interest rates rise to some point above 3%. I certainly think you’ll see inflation come down from 8%, but I don’t think it’s going to get that close to the 2% that is the Fed’s central objective. And I think some time, probably early next year, the most likely thing is that you’ll see the economy will be very substantially slow and perhaps you’ll see a period of negative growth. Which is, of course, the definition of a recession. I think that’s the most likely thing from here, but it’s certainly not something that is a certainty. And so, I think we need to do everything we can to take cost out of the economy.”

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