Summers: Three reasons for rates caution in the US

Summers: Three reasons for rates caution in the US. Former US Treasury Secretary Lawrence Summers has issued some cautionary words around the US economy. Summers says that the US remains in situation where, the risks are more to the downside than they are to the upside, still in a situation where low-flation or deflation is a greater risk than excessive inflation, still in a situation where we need to be focused on growing the economy faster in the United States. Summers cited three reasons for caution: The U.S. economy is the only vibrant economy in the world and there's a real question how long the world economy can fly on a single American engine. Two, that we've had a lot of false declarations of victory before, and then economic growth slowed. And three, by the knowledge that while we don't see what will cause it right now, never in the postwar period has a recession been predicted one year in advance by the government, by the IMF or by the consensus of forecasters. (VIEW LINK)


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