Larry Summers says Fed suffers from dangerous groupthink
Former Treasury secretary argues a massive recession is needed to combat inflation
Former US Treasury secretary Larry Summers has said Federal Reserve governors are suffering from groupthink and are continuing to make inflation forecasting errors.
“In 2021, our central bank let us down quite badly,” Summers said on July 15. “As a consequence, they find themselves in a very, very difficult position, not least because they don’t have the credibility that they once enjoyed given their repeated poor forecasting record.”
Summers said the Fed was unwilling to recognise that
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