An inflation warning from the former US Secretary of the Treasury

As the inflation debate continues in the USA, former Treasury Secretary Lawrence Summers has new warnings about inflation. Summers mentioned in a Bloomberg broadcast that even after the Fed's hawkish rhetoric and the selloff in US bonds, monetary policy officials and investors have misjudged the elements necessary to curb inflation. Lawrence Summers emphasized that monetary policy officials and investors in the US do not take inflation seriously enough. USA, former Treasury Secretary Summers said, "I think the Fed and the markets still don't know what it takes to keep inflation down. They believe the Fed and markets can fight inflation without raising interest rates above 2.5%." Fed officials are focusing more on inflation While inflation in the country has reached its highest level in 39 years, it is seen that the focus of Fed officials is getting deeper day by day. St. Louis Fed President James Bullard stated that the US Federal Reserve may start to increase interest rates in March in order to have a better position in controlling inflation, and that further rate hikes may be pushed forward or postponed to future dates depending on inflation developments. Bullard, who has recently been one of the Fed's most hawkish members and has the right to vote on the Federal Open Market Committee's decisions this year, predicted three rate hikes for 2022 at the last meeting. Bullard said, "It makes more sense to raise interest rates early rather than late. That's why, considering the data we have, I think that March is definitely a possibility. The Fed's balance sheet is also in favor of shrinking shortly after the interest rate hike." San Francisco Fed President Mary Daly said: "Right now, it feels very appropriate to start reducing asset purchases more quickly. This is a very different matter from shrinking our balance sheet; that will come after the Fed starts normalizing the funding rate."