(AmericanProsperity.com) – Prominent liberal economist Larry Summers said during a Monday interview on “CNN This Morning” that the US economy could be heading for a drastic decline that would end in a recession, following a concerning red-hot growth. He also argued that the continued efforts of the US Federal Reserve to end inflation could create this scenario, and explained through historical precedents that the process of tackling inflation could eventually lead to a serious economic downturn in the country.
Summers, who is one of the most famous American economists of the century, and served under the administrations of former presidents Bill Clinton and Barack Obama, said that the United States could be about to reach a “Wile E. Coyote moment” where the economy might “hit an air pocket” over the next few months.
Far from being the first time Summers predicted this delicate scenario for the United States, the economist said during a February 2023 interview with CNN’s Fareed Zakaria that he wasn’t sure that the Biden administration would be able to evade recession. He explained that even when there have been many efforts to reach a “soft landing,” inflation was still high in comparison to recent years and that the United States wasn’t “out of the woods” yet. Despite these alarming remarks, many liberals and progressives criticized the economist on social media, claiming that the economy was getting better and that he was just repeating the GOP narrative.
During his appearance on “CNN This Morning,” Summers also pointed out that even when there are numerous tradeoffs between delaying a recession in order to keep low unemployment, the benefits of this situation aren’t “permanent”. He added that keeping inflation at current levels would have the risk of making it entrenched and difficult to reduce in the near future.
According to US Labor Department data, the annual inflation rate for the country is currently 6.4 percent for the 12 months that ended on January 2023, after rising 6.5 percent previously.
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