Lawrence Summers, a former US Treasury secretary, has criticized the Federal Reserve for its financial woes, accusing the central bank of making “dangerous negligence” in financial markets and misreading metal.
The comments from Summers at a conference held by the Federal Reserve Bank of Atlanta show a sharp increase in its risks to a major US bank. A Harvard University economist and former Democratic presidential adviser had previously criticized Joe Biden economic incentives as excess this year.
Summers said policymakers and economists “denounced the dangers, in particular, of economic stability and traditional practices.” swelling of very low interest rates ”.
The fund has promised to keep US interest rates close to zero until recovery achieves major milestones, including total employment, while predicting that economic prices will remain temporary. A recent report by central bank officials shows lower prices so far until 2024.
“The idea is that prices can’t be raised. . . almost three years of unrestrained excitement, “Summers said, adding that the Fed could be forced to shake up monetary policy that could damage markets and destroy real estate.
“While, as I think it is appropriate, there is a need for policy change, this change will surprise us.” That “Jolt” will “destroy the economy, and it could ruin the economy,” Summers warned.
The program of Feeding has stated that strong financial support is still needed due to the risk of declining recovery and reduced employment compared to previous epidemics. Nor does it expect the rise in consumer prices to continue, saying it is fueled by corporate barriers and economic recovery.
Summers warned that the similarity between inflation and inflation, as well as between economic crisis and regulatory crises “was far from the current economic calculation”.
“Today’s early threats affect global warming, rising inflation and the subsequent economic downturn and subsequent economic instability. “Not in the economic downturn, high unemployment and high levels of laziness,” Summers said.
“It’s impossible to say in the American economy today that the market downturn is a big problem,” he added. “Go outside: unemployment it’s a widespread phenomenon. ”
The Summers attack on US economic policy makers this year has been controversial because he is a Democrat, and has caused him to become strong opposition within the party. Proponents of her case have been working to make the actual transcript of this statement available online.
It is said that Summers – who was secretary general of the Treasury from 1999 to 2001 – represents a market-affiliated, anti-democratic group that promotes strong economic policies during the tenure of Bill Clinton and Barack Obama, which led to a downturn and a coup d’état. of the world.
Nothing prevented Summers from participating in the group. On Tuesday he said the Fed’s new policy, which was approved in August last year to curb rising prices after a difficult economic study, was not appropriate in line with what is happening here.
“It’s not the right place for policies to be in the world when budget cuts have grown by 15% with encouraging policies,” Summers said. “I would love to see us go back to the Fed who is involved in setting up the economy before it happens, instead of Money [that] worries and anxieties that may be exacerbated by inflation. ”