Former Treasury Secretary continues to question the Fed
Maybe he's a sore loser because he lost out in his bid to replace Ben Bernanke, or maybe he's right. Either way, Larry Summers is breathing fire today.
He says a new Fed paradigm is in order.
"I am reluctantly coming to the conclusion that the United States may be on a slow-motion trajectory toward a Japanese-style chronic low inflationary, or even deflationary, outcome. A corollary of this view is that the current hawkish inclination of the Fed, with its chronic hope and belief that conditions will soon permit interest rate increases, is misguided," he writes in the Washington Post in comments just published.
In hindsight, what's incredible is that Summers was hailed as more of a hawk in the battle with Yellen for the nomination but he's turned out to be far more dovish.
And if you thought he might take over the Fed in a Trump Presidency, you might want to think again. In today's column, he refers to Trump as a 'demagogue' once again.
It's a shame he isn't Fed Chair because he has a much better handle on what's gripping the world that Yellen or anyone else at the Federal Reserve.
