Summers on GDP Growth

Former US Treasury Secretary Lawrence H. Summers breaks down the latest GDP data and why he believes the economy is in an "uncertain state." He also explains why the Fed should maintain maximum flexibility.
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[billsykes]

The role of markets and media in pushing the idea that a downturn is inevitable is an understated dimension in whether there will be a recession. Consumers are tightening their belts not just because of the cost of living crisis, but also increasingly because they’re expecting the economy to slow. This in turn could create a self-fulfilling prophecy which might otherwise be avoided.

[benk]

He is basically saying the economy has more or less stabilized he is just saying the FED needs to pick a bone to err on the safe side. Because loosening financial conditions is good for economic growth if it does not bring about inflation. I am too late to realise I have been in the wrong camp.

[tonyotag]

if fiscal policy defaults, will monetary policy be screwed? [default equals higher base interest rates AND higher inflation overall due to weaker USD in foreign exchange markets.]
For inflation in the short term, January and February CPI numbers are going to show if current polices (taxation and spending) are going to keep inflation low.

[zainulabidin]

Yes market is calling the Fed's bluff.

[valeenoi]

He is not even 68 but looks like 85.
They are really pushing for this recession with soft landing characteristic.

[hadawaycolton]

Personally I think we are in the pause phase, which can determine whether or not theirs gonna be another raise, its just the fed needs mortgage rates lower so they need to start the inflection or MBS lose value. Trying to be more, solid with my wording.

[HRaychin]

Im amazed every time when Summers talks he tells nothing, nice empty speech :)

[timwalter]

Yellen travelling to Africa to advise on handling debt issues???? That's pretty much a bad joke isn't it?

[paulwolinsky]

Brazil and Argentina two drunks in a ditch - as told by the bartender.

[dave]

Inflation is still at 6.5% with still a strong labour market. For inflation to hit 2% unemployment needs to rise otherwise the US will see stagflation.

[johndingle]

Summer's is realizing what many do. That economy has dramatically slowed down. Raised cost of living by 15% or more. Cathie Woods was right. We face deflation from a recession. Because many cannot keep up with inflation that has already happened. You can lower inflation. But it's too late. You've gone past consumers.

[tshirtnjeans]

Larry Summers is turning dovish. Could this be a tell?

[heshamaboutera]

so yellen coming to africa to lecture them about debt issues, , , when america is pushing theyr debt limit to NO LIMIT?

[jimbojimbo]

You have to raise interest rates by 0.5%

[diamandidimitrov]

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[hadawaycolton]

Who wouldnt be dovish with the next two earnings phases, its earnings and the psychology of the trader is always a buy.