Summers Says Fed Rate Hike Was Broadly Appropriate

Former US Treasury Secretary Lawrence Summers says the Federal Reserve did what was appropriate in raising interest rates by 25 basis points. Summers joins David Westin, former Fed Governor Dan Tarullo and Bloomberg’s Stephanie Flanders for an exclusive Wall Street Week roundtable discussion on current bank failures, the Fed rate hike, and the efficiency of stress tests.
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[Fatbodypyle]

What would probably help people get through these trying times of high inflation would be to reverse the flow of wealth thats been responsible for record high corporate profits (the highest ever percentage contributing to inflation)and redistribute it back down to the consumer. You know, trickle down economics.

[MrTigerStarX]

Larry has been shockingly accurate for 2-years straight. While 99% of portfolio managers have proven absurdly wrong.

[shaunmoorefinance]

They’ve told us they expect the banks to start naturally tightening credit so it’s gonna be bad still. Just without them having to raise rates.

[topsingles]

They should have raised the rates by 50 basis points in december and 50 points again this time to quash inflation. 6 pct inflation is too high for a worker getting a 3 pct annual raise. The fed was behind the curve from the beginning and is behind the curve now. Unfortunate that SVB's failure is impacting fed policy.

[praveenspike]

Powell's hands are tied and no one can blame him as the treasury is challenging the Fed. Rate hikes is the only possible way. If paused or supported the regional banks with finance, inflation will grow. Right now the Fed is uncertain as they don't know which sector is going to crack next or and will the SVB fiasco grow more. The .25% rate hike is a cautious reading of the current economy.

[topsingles]

Do workers want to make the sacrifice, accepting a 3 pct hike when inflation is at 6 pct so that other workers can keep their jobs(the argument against raising rates) ? It is debatable.

[thegodhead]

What will he say later this year when we see more bank failures and real estate market in shambles? I don’t even think prior rate hikes have taken full effect yet. Piling it on seems a recipe for disaster, imo. I hope I’m wrong.

[mattl]

Find someone better than Larry to chime in. He is so worn out. Let him just go to pasture. Please. Please. Please!!!