Top Obama Economist: Inflation ‘Worse’ Than Expected, ‘Very Serious’ Cause For Concern, ‘Wokeness’ An Issue | Eastern North Carolina 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

Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )

Biden Admin Now Urging Oil And Gas Companies To Bring Down Rising Fuel Costs: Report Daily Wire, Guest Editorial, Editorials, Op-Ed & Politics WATCH: Pelosi Berates Reporters For Not Doing A Better Job Selling Democrats’ Reconciliation Bill


Latest Op-Ed & Politics

Fox News correspondent Bill Melugin grilled several Democrats and Biden officials on camera for a Fox News segment that aired Monday afternoon.
Social Democrat prime minister resigns after coalition partner leaves
Two more legal challenges emerged last week against the Biden administration for its policy to cancel up to $10,000 in student debt for millions of borrowers.
A potentially disastrous situation was averted yesterday as White House aides were able to grab President Biden's arm in the nick of time and lead him away just as he was beginning to "follow the light."
Two recent polls indicate that support for Pennsylvania Lt. Governor and Democratic Senate candidate John Fetterman appears to be waning in his race against Republican rival and celebrity cardiologist Dr. Mehmet Oz.


follows West Virginia and Texas in removing all state funds
Date night for Madilynn and Murphy McMickerson started off just like every other date night when Madilynn told the server she would just have a light salad followed by her husband's entire entree.
As Russian President Vladimir Putin signed his annexation laws Wednesday, the Russian ambassador to the U.S. made direct accusations against America for its role in the Russia-Ukraine war.
Treasury Secretary Janet Yellen spoke Tuesday in the Triangle about the promises of reducing climate change through the Inflation Reduction Act.
The nation’s largest abortion provider Planned Parenthood is fuming-mad over abortion-related scenes in the latest Marilyn Monroe movie, “Blonde.”
WASHINGTON, D.C. – This week, U.S. Senators Thom Tillis (R-NC) and Chris Murphy (D-CT) introduced the Consensual Donation and Research Integrity Act, legislation to protect the dignity of those who donate their bodies to education or research.
Twice failed presidential candidate Hillary Clinton (D) might be gearing up to run for the nation’s highest office one more time in 2024 after her latest criticism of President Joe Biden (D), according to a long-time Clinton adviser.
Authorities are warning that the destructive power of Hurricane Ian is so severe that it could cause Florida to experience water and power shortage almost as bad as they have in California.


Back to Top