Larry Summers Scorches the Fed and Jay Powell

Former US Treasury Secretary Lawrence H. Summers explains why he believes Powell's call on the neutral fed rate was 'indefensible,' and weighs in on the merits of the Inflation Reduction Act.

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[hRtkuojTtmk]

Summers nails it. Neutral is probably closer to 4.5%. If Powell thinks 2.25% is neutral it shows he’s not even in the ballpark. He’s the wrong man for the job.

[DeepLyricist]

"analytically indefensible" is a term I'll be using from now on at work. "Susie, those seaweed cookies were analytically indefensible"

[alphar]

Summers is completely right. 2.5% interest is nothing with double-digit inflation.

[johndingle]

Inflation expectations rising everyday since powell. Powell is horrible. He entrenched stagflation now.

[johndingle]

"Wishful thinking" euphemism for straight out lying.

[johndingle]

Stagflation is entrenched now. Hard recession is now the inevitable outcome. Not if but when.

[jeffcann]

What Jerome Powell did ( or didn’t do) in 2021 was disgusting. QE for the entire year. Also, we had the hottest housing market ever and he was keeping rates at historic lows AND buying mortgage backed securities. Total incompetence.

[thenutrientwhisperer]

Call it what it is. It’s not wishful thinking it’s flat out lies.

[williamandrews]

Normal people see the lies, manipulation, and gross unfairness

[albertoperin]

Powell should have resigned after miss the inflation forecast, instead still there keeping the narrative going...

[wallacesouza]

I'VE BEEN SEEING POST EVERYWHERE ABOUT FOREX TRADING AND CRYPTO CURRENCY, A LOT OF PEOPLE KEEP SAYING THINGS ABOUT THIS TRADING PLATFORMS PLEASE CAN SOMEONE LINK ME TO SOMEBODY WHO CAN PUT ME THROUGH..?

[johndingle]

Powell has no problems pushing 5 yr inflation expectations upto 3.0%.

[cameronholl]

Summers and el-Erian the only talking heads keeping it real from Covid QE in 2020.

[NICO-Z-TRADER]

J Powell is/was wrong all along... His analysis was incorrect. While Larry and El Arian among others were explaining that the massive bills would result in inflation, when they claimed that inflation was persistent, J Powell was still serving the markets with a "transitory inflation" fairy tale. If the economy is suffering from inflation, it is all FED's mistakes. J Powell last conference was beyond imagination and only serving markets what markets like to hear. It's disappointing... And worst, it is going to impact lots of people. As some economists explained: lasting inflation is much more harmful than a recession. With FED's actions, we will have both lasting inflation and deep recession... Time to get your sh*t together J Powell, show some balls and stop this FED's put madness.

[DDP]

This guy is in no position to criticize anyone!! Why’d you repeal glass-stegnall Lawrence?!?!

[karolmetal]

The only thing this new bill is going to improve is inflation

[cacosartto]

The naturallity that some people talk about climate change to explain whatever unpopular measures in this case raising taxes is amazing! Cutting expenses ? Noo. Raise taxes.

[sumitomoOO]

Inflation is only GOOD for asset holders (stocks, farmland, real estate) as their assets inflate much faster than inflation. Inflation is WORST for paycheck earners who has no assets as they spent most of their income on food, gas, rent etc. FED always favored asset holders by QE and zero% rates

[KT-zxjr]

Larry's comments "'I'm pretty uncomfortable with the current situation" means the terrible polices out of this admin....

[stevenmeyers]

So working people asking for raises is causing inflation? Inflation came first, then working people started asking for raises. No mention of record profits for companies, record stock buy backs, and record CEO, CFO, and COO salaries have nothing to do with it? These guys are all full of shit.