Larry Summers warns of looming recession over surging inflation

‘FOX Business Tonight’ host examines the cause of higher gas prices.

Former Treasury Secretary Larry Summers on Thursday warned the U.S. economy could slide into a recession as the Federal Reserve takes what he described as long-delayed action to cool the hottest inflation in nearly four decades.

Summers, during an interview on a Bloomberg Economics podcast, said the U.S. central bank has been late to spot the dangers of inflation, and that steps it takes now to mitigate soaring prices risk tipping the economy into a slump.

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“If I thought we could sustainably run the economy in a red-hot way, that would be a wonderful thing, but the consequence – and this is the excruciating lesson we learned in the 1970s – of an overheating economy is not merely elevated inflation, but constantly rising inflation,” Summers said. “That’s why my fear is, that we are already reaching a point where…

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