Former US Treasury Secretary Lawrence Summers warned

Lawrence Summers told Bloomberg Economics that the Fed was late in taking action against the inflation threat. Summers stated that the overheated economy not only increased inflation, but also caused a 'continuous' increase in inflation, adding, "My concern is that we are moving towards a point where it will be difficult to reduce inflation without causing a recession..." Lawrence Summers, a Harvard University Professor, has frequently expressed in his previous statements that the Fed, Biden government and investors underestimated the pandemic-induced rise in inflation. Summers stated in his evaluation today that they are facing a serious inflation problem. The fact that US inflation has reached its highest level since the Ronald Reagan era causes many experts to agree with Summers's view. The US Federal Reserve also gave the message that there will be more aggressive tightening in monetary policy next year at its meeting this month.