Commenting on the US Federal Reserve (Fed) policy path, former Treasury Secretary Lawrence Summers noted that the Fed policymakers need to take strong action to quell soaring inflation.

Also read: US week ahead: Fed rate hike decision and Q2 GDP in focus – Moody’s

Key quotes

“We do need strong action from our central bank.”

 He cast doubt on the likelihood of a soft landing for the US economy, saying it’s “very unlikely.”

“There’s a very high likelihood of recession when we’ve been in this kind of situation before.”

“Recession has essentially always followed when inflation has been high and our employment has been low.”

“There’s a lot we can do to contain or control inflation.”

“But if we continue with the kind of ostrich policies we had in 2021, there’s going to be much, much more pain later.”