Top Obama Economist: Inflation ‘Worse’ Than Expected, ‘Very Serious’ Cause For Concern, ‘Wokeness’ An Issue | Beaufort County Now | Larry Summers, who served as Treasury Secretary under former President Bill Clinton and director of the National Economic Council under former President Barack Obama, warned during multiple interviews this week that inflation is even worse than he suggested earlier this year.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ryan Saavedra.

    Larry Summers, who served as Treasury Secretary under former President Bill Clinton and director of the National Economic Council under former President Barack Obama, warned during multiple interviews this week that inflation is even worse than he suggested it might be when he commented on the matter earlier this year.

    Speaking to a virtual conference organized by the Institute of International Finance, Summers also warned that woke bankers were an issue because they are focusing on the wrong thing.

    "We have a generation of central bankers who are defining themselves by their wokeness," Summers said. "They're defining themselves by how socially concerned they are."

    Summers, who is now a professor at Harvard, warned that "we're in more danger than we've been during my career of losing control of inflation in the U.S."

    "We've gone even further towards losing it in Britain and I think we're at some risk in Europe," he added.

    Summers' remarks come as new consumer-price index numbers show that inflation is continuing to remain high. Price levels have surged 5.4% over the last 12 months and 6.5% on an annual basis so far in 2021, according to The Wall Street Journal.

    Summers said earlier this year that the size of Democrat President Joe Biden's economic stimulus was causing the economy to "overheat" and that it may melt down if Democrats did not start pumping the brakes.

    "The main risk is that our economy's going to overheat," Summers said. "And then once it overheats, it's going to be hard to put out the fire without doing a lot of damage and causing a lot of problems. And so I'd like to see us shift towards a policy concern. I mean, let me give you another example."

    During a separate interview with Australian media this week, Summers gave a stark warning about inflation.

    "I'm afraid things have come in worse than I expected on inflation," Summers said. "My view is, in February, was that we had a lot of demand coming down the pike that eventually the bathtub was going to overflow. And we were going to have inflation because of the combination of fiscal and monetary policies and a big savings overhang. What is surprised me is how tight the labor market has become, how fast. How many supply-side bottlenecks have returned, and how rapidly inflation has accelerated. And that seems to be translated into increases in inflation expectations."

    "Well, I think we now have a gathering storm of inflation," he continued. "And we're likely to see some combination of that storm coming to fruition, or the central bank being forced to act to contain inflation with potentially serious financial consequences, or some combination of those two things. We've had labor market inflation wages at a seven and a half percent rate in the last month, we've had consumer price inflation close to a 6% rate over the last six months. We've had houses causing price inflation at over 20% over the last year, and almost none of that has yet been reflected in the price indices. I think they're very serious reasons for concern."

    Summers later added that he believes that the U.S. is facing "a pretty unstable financial environment"

    The Daily Wire is one of America's fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.
Go Back


Latest Op-Ed & Politics

revoke emergency use of monoclonal antibodies with no basis for doing so but politics
President Joe Biden faced backlash on Sunday over remarks that he made in response to the hostage situation that unfolded on Saturday at a synagogue in Colleyville, Texas.
Top Democratic strategist James Carville took a shot at his own party during an NBC News interview on Sunday, saying that they needed to quit whining about things that they did not get, and focus instead on fighting for the American people.
Democrat Rep. Maxine Waters (CA) attacked members of her own party over the weekend, suggesting that they were racist because they do not support far-left measures that the party is pushing.
Gov. Roy Cooper and N.C. Attorney General Josh Stein want the state Supreme Court to throw out new statewide election maps.
We get corruption when power is abused.
Russia has reportedly signaled that it may move nuclear missiles off the United States coastline if it does not get what it wants in Europe amid increasing conflict with Democrat President Joe Biden’s administration.


The death of a democratic republic is not a new possibility; it has happened before in the pantheon of World history, and it can happen again; but, who will be to blame?
Biden snapped at Fox News reporter Peter Doocy
When asked by Fox News host Maria Bartiromo if he was going to “investigate Anthony Fauci should you take the control in the majority of the House,” Jordan responded, “Yes. Yes, we definitely are.”
Today, Governor Roy Cooper and Attorney General Josh Stein filed an amicus brief in two cases currently before the North Carolina Supreme Court urging the Court to ensure that state elections are conducted under fair maps that are free from partisan gerrymandering.
British law enforcement officials released a statement late on Sunday night stating that they have made multiple arrests in connection with a British national who took several Jewish people hostage at a synagogue in Texas over the weekend.
The Gavi Vaccine Alliance is run by the Gates Foundation and they published a paper in 2018 in which it made reference to its Infuse program. This paper should be required reading for every parent of young children.
An official with Union Pacific (UP) revealed late last week that the organization believes that approximately 90 shipping containers are compromised by theives every day


Back to Top