Former Treasury Secretary Lawrence Summers said the prospect of a “soft landing” for the US economy is looking high, although inflation figures remain very high.
“I would say I’m encouraged, but I still think it would be wrong to say we’re out of the woods,” Summers said in an interview on CNN’s “Farid Zakaria GPS” broadcast Sunday. Inflation indicators remain “unimaginably high” compared to two or three years ago, and returning to the Federal Reserve’s target “may still prove quite difficult,” he said.
With US price growth slowing, the economy added 517,000 new jobs in January, far exceeding projections and pushing the unemployment rate to 3.4%, the lowest since 1969.
“It looks like we’ll have a softer landing than it was a few months ago,” Summers said.
On Friday, Summers highlighted the risk of a sudden downturn in the economy after a jump in jobs growth.
The question is whether the proceeds will be spent and lift the economy or whether companies at some point conclude that they have too much inventory and too many workers, who, according to Professor Summers of Harvard University and Bloomberg contributor, “enough.” leading to a sudden stop”. said on Bloomberg Television’s “Wall Street Week” with David Westin.
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