Larry Summers Says a Trump Win Would be Unsettling

A Donald Trump presidential victory would be “unsettling” for the markets, said Larry Summers, who served in two Democratic administrations.

Summers, former Clinton administration treasury secretary, told CNBC’s “Squawk Box” the nationalistic forces that led to the vote in Britain to leave the European Union make the “the possibility of a Trump victory more real” because his supporters share similar world views.

“[But] Trump has behaved in so bizarre a way [post-Brexit] it’s made those risks less salient than they could have been” for financial markets, Summer said, referring to Trump’s celebration at his golf course in Scotland last week for the United Kingdom vote. The real estate mogul talked about how the plummeting British pound would be good for tourism.

Summers said he does not believe Trump will become president.

The way Trump has conducted himself on the Brexit issue and past controversial remarks he’s made about women and minorities makes his candidacy “look deeply disturbing,” said Summers, a former economic advisor to President Barack Obama.

Summers predicts Democrat Hillary Clinton will run a better campaign than the remain camp did in Britain.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza