Former Treasury Secretary Larry Summers, a critic of loose central bank policies who was early to sound the alarm on the current bout of surging prices, warned in a CNN interview last week that, unless the Fed makes a significant change to policy or an “accident” delivers a major disruptive blow to the economy, it’s “quite unlikely” the rate of inflation will fall back to the central bank’s 2 percent target in the foreseeable future.
“Odds are that we’re going to have inflation of a kind we haven’t seen in 30 years, until either the Fed takes some significant move with respect to monetary policy, or until there’s some kind of accident that disrupts the economic growth we’re enjoying,” Summers told CNN host Erin Burnett in an interview that aired Nov. 13.
