Ex-Treasury chief Larry Summers says the Fed's inflation fight is paying off - but a recession, slump in stocks, and spike in unemployment may lie ahead

Dec 19 2022 by Business Insider

 
Larry Summers.

Hyungwon Kang/Reuters

The Federal Reserve's interest-rate hikes are starting to cool inflation, Larry Summers said. Yet the US economy may still suffer a slump in consumer spending, stocks, and employment, he said. The next recession may have been delayed, but it might still hit hard, the ex-Treasury chief said.

The Federal Reserve has caught up with the inflation threat, but the US economy could still suffer a sudden downturn that causes stocks to slump and unemployment to...

Continue Reading Ex-Treasury chief Larry Summers says the Fed's inflation fight is paying off - but a recession, slump in stocks, and spike in unemployment may lie ahead