Larry Summers Says Rate Hike Not a Risk Worth Taking

Data on the three areas the Federal Reserve cares about most—inflation, employment and financial stability—are all indicating the central bank should hold off on raising interest rates, former Treasury Secretary Larry Summers said Thursday.

At present, inflation is below target, the labor force participation rate is lower than it’s been in a quarter of a century, and financial market volatility is elevated, he said.

“Today, when you’ve got real major uncertainties coming out of China, coming out of the other emerging markets; when it hasn’t been such an easy period in Japan; when worldwide you look at major countries, real interest rates are zero and everywhere inflation is expected to be below 2 percent, it’s very hard to see the case,” he told CNBC’s “Squawk Box.”

via CNBC

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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