2023-10-08 12:58:00
Former U.S. Treasury Secretary: The Fed’s interest rate hikes have not worked, and the risk of a hard landing for the U.S. economy has increased sharply
Overseas Network, October 8. According to a Bloomberg report on the 6th, former U.S. Treasury Secretary Lawrence Summers said that the U.S. employment situation last month showed that the Federal Reserve’s interest rate hikes did not work as before, but instead increased the risk of a hard landing for the U.S. economy. risks of.
In an interview with Bloomberg Television, Summers said the risk of a hard landing may “look a little bit greater” as job growth accelerates. Summers said interest rates may no longer be the tool they once were to guide the U.S. economy, which means when the economy needs to cool, interest rates will have to be more volatile than in the past. Summers also warned that given the current sell-off in the bond market and rising valuations in many markets, including private equity, the U.S. economy is being put on more dry pyres than before.
A year and a half ago, the Federal Reserve launched the most aggressive monetary tightening action in decades, raising interest rates by more than 5 percentage points. However, this policy did not bring the U.S. unemployment rate within a reasonable range. Summers said the economic performance indicated some fundamental shifts in the effectiveness of the Fed’s policy. (Overseas Network Hou Xingchuan)
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