Larry Summers on the Mixed May US Jobs Report

Lawrence H. Summers, Former US Treasury Secretary says he believes that the most recent jobs numbers are strong and that the US still has a tight hot labor market. He also explains why the Fed might have to raise rates in June.
--------
Connect with us on...

[imtryinghere]

Larry would make a great penguin in a reboot of Batman and Robin

[albertoperin]

This thing will not be solved until those who hold assets will be really hit. House prices are going up with 7% mortgage rates...

[sumerrana]

Where the heck are these jobs? I am reading LinkedIn posts of people struggling to land in jobs after 100s of interviews.

[xx]

summary of this video :Summers discusses the recent jobs report, which exceeded expectations with the addition of 13 and 39 thousand jobs. They consider these numbers to be strong and indicate the underlying strength of the economy. The speaker also suggests that the forecasting community has consistently underestimated the strength of the economy, potentially overestimating the impact of monetary policy in slowing it down.

The conversation then shifts to the passage of a package addressing the debt ceiling problem and its implications for fiscal policy. The speaker believes that with the debt limit issue resolved, the focus should turn to the long-term fiscal picture of the country. They express concerns about the projected budget deficit, which could exceed 10% of GDP, and criticize certain provisions in the package related to tax enforcement.

The discussion touches on the ratio of debt service to GDP and its potential impact. The speaker argues that assuming low interest rates for an extended period is unrealistic, and higher rates could significantly increase debt service levels. They highlight the need to prepare for potential shocks and contingencies in the future.

Regarding the economy, the speaker believes that the robust jobs numbers and the risk of inflation warrant the Federal Reserve considering rate hikes. They suggest that a recession is inevitable and that delaying necessary actions could lead to more significant issues later on. However, they do not foresee a recession before the end of the summer and speculate that the Fed's actions may result in a soft economy in 2024.

Overall, the speaker emphasizes the strength of the jobs report, the importance of addressing long-term fiscal challenges, and the need for proactive measures to manage inflation and potential economic downturns.

[wanderingknight]

Almost half a million jobs ..nice!!! Can’t wait for more interest rates

[glennnielsen]

It could be interesting to hear whether Larry Summers believes that inflation is defined or measured correctly and, in the same consideration, whether we can compare inflation between countries.

[jakethomas]

"Dynamics are very difficult to gauge".
But a flight manifest is easy to read.

[royprovins]

HIgher interest rates are good for retirees who have no debt

[fr_org]

if inflation continues too cool there is no need to crush the economy. Europe has more reason to be screwed yet their stock market is higher and their inflation is dropping like an anvil in a loony toon. Germany for example dropped their inflation 2% past their expectations... 2%!!! they have bigger energy issues than the US! this man is short and wants to crush the market

[drsuzuki]

Larry knows the FED is being too timid. The FED needs to drive a spike into the heart of this economy.

[jookyuh]

Give it a rest. Inflation is coming down rather quickly when you look at the realtime and forward looking data.

[thinkpod]

Looking at deficit right now public debt increased by 1 Trillion

[larrythelieutenant]

So is LS advocating for austerity or tax hikes? Sounds like unemployment is his main measure of the health of the economy. He would prefer higher unemployment and all of the benefits employers have with job scarcity compared with slightly higher inflation and employees having higher wages and additional flexibility.

[raywest]

So WE have to pay to 'reconstruct Ukraine?'

[JaxOneil-fukt]

There is a side gig available, mostly for folks seeking a side work, or people looking to gather more experience about data and such, get in touch with me for further details.

[marcedrickirby]

If you steal don't get caught holding the bag but if the cockroaches get something taking from him/her is it called stealing or is it just called holding the bag door please because I am going to take it from you

[PMrighteous]

Blah blah blah Bs. You don’t KNOW !!!!

[AJ-iunw]

Larry was on that island. He met with him 3 times.