The recent administration leaves absolutely nothing to be desired in terms of economic standing and even Larry Summers, former Treasury Secretary for the Clinton Administration, has expressed massive concerns ahead. This is an alarming prediction, particularly when it comes from a democrat. Clearly Summers was not properly briefed by his current party leaders; that they don’t talk about a negative economy.
Larry Summers, former Treasury Secretary, had some sobering news on Thursday when he pointed out four signs of potential risk to the United States economy’s current stability. Citing economic indicators that could easily be interpreted in a positive light, he warned against being overly optimistic, calling the current economic climate “an extremely difficult one to read.” It is wise for investors to remain alert and cautious as they move forward. What rock has Summers been living under? Doesn’t he know that according to this administration the economy has never been better?
Market insider reported, there are four troubling signs of potential risks to the current robustness of the US economy, according to former Treasury Secretary Larry Summers.
In response to a question about our current inflation, Summers gave the following response.
According to Summers in a Bloomberg interview on Thursday, recent economic data like strong labor market figures and a surge in retail sales may be overly optimistic for investors.
Summers continued, “We’ve got an extremely difficult economy to read,.People may be reading a bit too much into the moment in terms of economic strength — relative to the way things could look very differently in a quarter or two.
His pessimism about the economy builds on previous warnings. Apparently, the central banks’ efforts to bring down inflation aren’t working as well as hoped – and that could mean a “collision” for the US economy.
Although inflation has moderated from last summer’s 40-year highs, it was still above the Fed’s 2% target in January – 6.4%. That’s just a very slight drop from December, suggesting price pressures remain stubborn.
It is true that the inflation within our own country is threatening to cripple us, so a lot of people are rightfully questioning why we would be sending money outward. From the perspective of Summer, a pessimistic democrat from an era where America wasn’t dying a slow death yet, this makes even less sense – for if we’re not looking after ourselves, who will? It can be quite easy to get wrapped up in global affairs and lose focus on keeping our economy stable at home. If our economy completely crumples, we will be useless to the rest of the world then who will step up, China?
Let’s continue this conversation, in the comments below.