Larry Summers, who was Secretary of the Treasury under Clinton and directed the National Economic Council under Obama, said on CNN recently that inflation is going to be unavoidable for the near future.
CNN host Erin Burnett asked Summers about his opinion on the subject:
“Given that you were worried about this before almost anybody else, and given that now you have got all these CEOs saying it’s going to go a year, maybe even past that, right, at that point, it wouldn’t be transitory, how long do you think inflation is going to go up?"
Summers replied with his expert opinion:
"I think the odds are that we’re going to have inflation of a kind we haven’t seen in 30 years, until either the Fed takes some significant move with respect to monetary policy, or until there’s some kind of accident that disrupts the economic growth we’re enjoying."
"I think it’s possible but quite unlikely that inflation will recede back to its normal 2 percent level without some significant change in the path we’re now — we’re now on."
Summers continued by pointing out that he things the Biden administration is acting incorrectly and making the situation worse:
"I think the Fed has made a significant mistake in the approach that it’s taking by doubling down on the massive fiscal stimulus we had at the beginning of the year with really easy monetary policy."