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
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