Larry Summers: High Inflation ‘Never’ Comes Down Fast

Economist Larry Summers delivered a sobering perspective Thursday for those hoping inflation would improve in the near future.

“Almost never does high inflation come down fast,” Summers stated on social media Thursday.

“Today’s consensus view that inflation will come way down is, as this figure from Jim Reid at Deutsche illustrates, outside the range of normal historical experience.”

The former treasury secretary from the Clinton administration also said historic inflation since 1970 is too generous when considering various trends that play a factor in today’s economy.

“Populism has never been stronger. Labor markets are super tight. Government debt ratios are at peak levels. Globalization is certainly no longer spreading and may be receding,” Summers said.

Despite having served in the Clinton administration and as former President Barack Obama’s chief economic adviser, Summers has been critical of the Biden administration’s approach to how it is handling to handling the inflation crisis.

He stated earlier this year the Biden administration’s categorizing of inflation as “transitory” put them way behind on the issue.

Summers has recently said the Federal Reserve will need to hike its rates even more than what it is estimated to do so next quarter to cool inflation. “The Fed continues to be excessively optimistic,” he told Fortune in September.

Overall inflation has increased dramatically under the Biden administration, increasing by 8.2 percent since last year. Core inflation — which does not account for volatile food and energy prices — is currently at 6.6 percent, the highest it has been in 40 years.

Furthermore, food and consumer goods are outpacing the rate of inflation. Food prices have increased by 13 percent since last year, gas prices are by 18.2 percent, and purchasing a new vehicle costs 9.4 percent more

Despite the American economy adding 2.6 percent of gross domestic product growth in the third quarter of the year, many economists believe a recession may be looming within the next year as the Fed is expected to hike interest rates, Breitbart News’ John Carney reports.

You can follow Ethan Letkeman on Twitter at @EthanLetkeman.