It seems like FED might just be complacent for sometime and start cutting too early; Once the rate cutting starts inflation will start to most likely pick up and then FED will start a MASSIVE RATE HIKE to 10% FED FUNDS rate; Hence this outcome will cause and start depression

Summers is 100% spot on. Real inflation is much higher then the "official numbers." Fed needs to hike rates as Larry says.

Very, very well said. Government spending is way too crazy as well. Congress and the president need a reality check via the treasury and Fed.

Even Paul Volckler during the great inflation had to battle to do what was necessary. Jimmy Carter deserves credit because he basically sacrificed his political career to let Volckler hike rates. I think the fed did the right thing and probably needs to hike another 1% and leave it for a year. Part of the issue nowadays is how well the upper class is doing. Economic inequality- basically two encomies. Society was much more equal back then so monetary policy affected more people.

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Considering inflation signals and the Fed's paused rate hikes, what are the top additions to a $500K portfolio to boost performance this year?

Spot on ! .. next move is a hike

Just the idea cutting rates anytime in the foreseeable future strikes me as sheer lunacy. In fact, we are behind on raising rates and have been since the very first signs that inflation was taking off. IMO, the Fed is simply dangling a carrot for the markets when it even mentions rate cuts, knowing full well it cant do that without ramping inflation higher and higher. "Why are we even talking about rate cuts? " Why indeed!

Guys, government is over spending. How can inflation come down if one guy (government) is buying everything?

Inflation has nothing to do with federal government’s additional 1 trillion dollars of deficit spending every 100 days. Honest, trust me🤣

unemployment is low and inflation is well above the 2% target. The only reason to cut interest rates is purely political. In my opinion, a Fed Funds rate hike is more likely than a cut.

If they were dumb enough to cut rates. How many of the 90% could actually buy a home? Also the black swan has been doing puckering exercises...

Too much money printing/deficit spending!

Best comment by former Fed Sommers is to open markets. That means lowering tariffs from other countries so that we do not pay ridiculous prices for goods from other countries. We, the consumers pay the price of higher tariffs, NOT the country selling those goods to you. That is why we cannot buy a reasonably priced EV in the US. Those priced at ten thousand dollars are not allowed to be sold in the USA. It is in the governments interest to keep us ignorant of these facts.

hike up, and maybe two hikes needed, and make borrowing difficult! Stat!

I have asked 20 yr olds do you still dream of having the American dream, they say “ they can’t afford it “ so no. To me when the future didn’t dream of the dream, I think the country has big problems and neglecting the future for the past is a big mistake.

About 2 years ago, Powell said there will be some pain. We're not there yet.

The Feds needs to raise the interest rates to 24% like the credit card companies do.

They need to raise rates!

Higher for longer, baby!

Thank you to our host and guest of stature Summers. Masterfully done

Since 2019 groceries are up 70%, New cars up 30%, property taxes up 40%. it’s mostly pure greed at work here… workers are not getting wage increases even close to those numbers… “finding bottlenecks” ??? The corporations are not going to reduce prices as long as people keep buying.

Too much deficit spending by the government isn't helping

One of the things Bernanke did during the GFC was that he introduced the Fed paying interest on reserve accounts. That's part of why the Fed is currently reporting a $130 billion loss. That's money that offsets, for the banks, the effects of higher rates. Current effective rates are much lower than the headline number, and the high inflation and high GDP growth numbers show it.

US printing machine goes BRRRRRRRRRRRRRRRRRRRRRRRRR........interest rate raising

Very insightful exchanges between the host and the Secretary.

Where is the money coming from on the consumer level (70% of GDP) as well as tightened bank liquidity, to keep driving this inflation? I truly thought we would have broken something by now.

Agree with Larry. Why would rate cuts even be on the table at this point when inflation is nowhere near their target, let alone well within their target.

Listening to Larry Summer's countless "um"s and "ah"s is painful, but everything he says is accurate in this interview.

Rates should have kept going up.

A reality check for all these “no landing” “soft landing” voices. He didn’t even get to the National Debt and Personal Debt with inflation going up.

The Fed should just publish right now a calendar showing that each quarter for the next 2 years they are going to raise rates .25 until inflation gets under control. This whole thing is getting ridiculous!

Larry is SO Spot-On here... Get ready... "Bumpy" just became the New "Transitory "...

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

Raise fed rate, get inflation under control

Interest rates are still historically too low. Dream on about any cuts this year? Wake up

Full interview much better

Thank you very much...

The question that I want the Fed to answer, with a better response than "we thought it was transitory inflation", is why did they let the rate set so low for so long? The data was there, it was observable to every eye that wasn't under a rock that inflation was a remaining problem. Overall, this could have been avoided, but here we are.

In October, I could see in my business environment that things were slowing down and I believed in the soft landing scenario if this kept up for a few months. Then the dot plot came out, and everything rallied, surged, rates dropped, transportation accelerated, everything I went against happened. The Fed was so close then jynxed themselves and punted the ball. Maybe they did it intentionally to draw money out of the economy but who knows.

It's surprisingly disappointing that neither Dr. Summers or the interviewer mentions the phenomenon of fiscal dominance. This is something that the United States could very well be flirting with. Monetary policy has much less effectiveness when debt to GDP Levels are as high as the United States has right now. Higher rates may in fact be contributing more to inflation now with higher interest expense which inevitably has to be paid for with more debt issuance ie more new money in the economy. This could be offsetting any disinflationary effects higher rates are having in the private sector. The fed and the treasury I think are very well aware of this new phenomenon and are acting accordingly. Dr. Summers needs to get with the picture and stop living in the past

The probability of no rate cuts this year is increasing (to 50/50?)

The model is toast. 😂

FED need to tighten!

Scary stuff mam

10% interest rate pls!

Wow. Wish he is still in charge

**scratches face and arms** "ya'll got any more of them RATE CUTS???"

Most grocery prices are just straight price gouging

Larry Summers should be Treasury Secretary & Fed Chair simultaneously --- that would be the quickest way to get out of this mess.

Larry is smarter than I thought. He is right.

Pearls of wisdom from the lips of the man who said “the bankruptcy of Enron is the beauty of Capitalism”

Protectionist policies are indeed inflationary. If lots of US based workers lose their jobs we will beat inflation. Apologies to those who lose their jobs (millions) for the sake of price stability. Personally, I’m in favor of pro-US policies. Our nation is better off if the folks can find a job.

Yes we know

Lots of PART TIME JOBS, wonderful

Rates need to rise to restrain inflation, but that will lead to a deep recession. Stagflation is the likely outcome!

The strong dollar policy crushes competition…for American workers. It’s not protectionist to expect currencies to be fairly set. Ours makes US exports non-competitive and then American workers are forced to turn toward unions for fairness. The Fed works to stymy American wages and yet had no desire to head off inflation at first sight. All these things play into November and it’s unfortunate that they all could have been avoided.

I agree

Now there is no interest rate reduction, it seems that there will be no interest rate reduction before the end of the year.What is the Rational and Clear Solution, does it really exist?

4:20 “The Fed has lost its way the last six months” Translation- Lobbyists and the White House have had closed door meetings with Powell and the Fed to let them know something needs to be done before November.

Rate hikes won’t solve the housing problem.

Shouldn't? They *can't.*

Rates are too low.

Economics is just pure BS. Except it provides abstraction over actions of "people" that are affecting your life in a great way.

Private sector warrants cutting but public sector spending like no tomorrow so inflation is up. It’s stagflation folks; and an intractable kind thanks to enormous and ever-increasing budget deficits.

a rate hike makes total sense. i don't see how a rate cut would be helpful to the overall situation

Gov is afraid that borrowing and servicing the mountainous debt at current rates is unsustainable, so they are looking for pretexts to cut rates...but they know that by doing so they will crash their fiat dollar and the citizen with

Bankers are already rich. How about the other 2/3s of the citizenery?

Central bank digital currency is relevant to today's interest rate environment. If everyone had access to an interest-bearing central bank digital currency, the consumer would have greater bargaining power in the rate markets.

Inflation is bad, but it is like a hangover from a great party. The big question is how long will it last?

I'm not clear how or why a lot of people think inflation is going back to 2% anytime soon. I hear we don't have enough housing. Higher rates sure isn't going to build more housing. So how is housing not going to just keep going up until enough people are so stressed they start doubling and tripling up? The other reality is oil. We're not out of oil, but we're having a hard time keeping supply up. The world is using more oil as reserves reduce and easy, cheap oil is reducing the fastest. Most goods have an oil component. Food especially uses a lot of oil. As supply falls I don't see how the price or oil will not keep increasing over years going forward. Housing and oil look like supply problems to me. Maybe 3% or 4% inflation is just the market telling the world ya better make some changes. As rents keep increasing it will cause more rentals to be built. As oil keeps increasing it pushes the market to find alternatives and I don't mean just a new magic fuel. Different ways to do things to reduce fuel costs, plus alternatives.

The Fed will raise rates soon...

Did he compare today to 1995?? Might as well compare it to pompei

It’s not all about the interest rate. Liquidity and money supply is even more important. Looks like the Fed has flooded the market with liquidity since the troubles with regional banks in 2023 spring …

He shouldn't be surprised. I keep a list of a basket of goods similar to Fed and this inflation increase was known. I can't believe that major institutional houses are sitting there waiting for this number 😯 What a joke 😅

No more drill baby drill, replaced by spend baby spend , gold speaks the truth , at its historical high price

I wonder if lower prices on EV, green energy products, ….. might help with rising inflation?

Omg, Larry dropping truth bombs! Feel like he just shifted onto the side of next generation. We can’t change the game guys. As with all booms,Fed has to engineer the bust.

Big bell energy ? lol

Psssssst what about borrowing and debt servicing?

Larry was a frequent flier on Lolita Express

Does Powell have the stones to do the right thing?

We traded this guy for Janet Yellen. We traded the Orange man for Brandon. I want the Orange man and the mean tweets back.

I think the Democrats should shove through another 2 Trillion dollar Inflation Reduction Act. That should fix things...

no one mentions that the fed is a privately owned corporation ..and the owner just died ..to whom did he leave this lucrative business .???

No keep them at 4 to 5 % compatible with the countries economies GDP etc

Gotta agree with Larry baby on this one.

So there being forced to cut but cannot get inflation under control? So, we're headed for much higher inflation?

These are normal rates. If anything they meed to go up to stop thos oit of control inflation.

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Surprised Larry does not emphasize the exuberant government spending and deficit as a driver of inflation!

This guy should be fed chair and Powell should be in jail.

He's right¡¡

Supply and demand determine prices. Unfortunately, when rates drop finally, I expect that property prices will start to rise again. The demand is there as the millenials are at the age where they are starting households and the supply hasn't grown accordingly. Maybe (hopefully) I am wrong, but for those who expect prices to stay the same when rates go down, it would seem risky. It might even make sense to get in now while rates are high and refinance when they become more favorable.

Rates actually need to go up, not down

I wonder if he is shorting the stock market 🤔

Buy now pay later might have upwards inflationary pressure.

I reckon another 1 or 2 0.25 hikes should do the trick.

All by wef Un disign. To bring in cbdc

O Bidone is WEC lackey