(DCWatchdog.com) – If what Former National Economic Council director Larry Summers told MSNBC is accurate, Americans could be in for a rough economic road in 2023.
As Breitbart News recites Summer’s conversation in “Larry Summers: We Will Have a Recession, It Will Not Be Mild”:
“I think the market is expecting, and the market is probably right, that inflation will come down from its current levels. There is still a question of whether it will stay down and how much we have to do to make sure that it stays down, I think it’s still a question. And whether it can be brought down to stay down without a recession is a very large question.
“My guess is that the Fed will, in the end, half to suffer through a recession if we are going to bring inflation down. Perhaps that was inevitable. Probably that was inevitable given all the stimulus that was provided to the economy in 2021, given that the Fed was late, and very importantly, given all of these supply shocks that the economy suffered. But whereas I had thought that the Fed was very much in the wrong place a year ago, way behind the curve in terms of responding to inflation. I think in very difficult circumstances, they are in the range of having done the right things and pointing towards doing the right things. I think the chairman was right in the film clip. He showed that no one can know what is going to happen going forward.
“My guess is that we will have a recession. That it will not be especially mild as a recession, but there is no reason to think that it will be anything like what happened after COVID, or what happened after the financial crisis, or what happened when Paul Volcker had to slay inflation after a much longer period of high inflation at the end of the 1970s. Perhaps the unemployment rate will get in the range of 6%.”
Not good. https://t.co/HvBAhVCkUy
— Breitbart News (@BreitbartNews) December 16, 2022