Summers: the Fed will likely need to raise interest rates more than the market anticipates<p>Former Treasury Secretary Larry Summers spoke with Bloomberg TV's "Wall Street Week"</p><ul><li>economy has a "long way to go" before inflation is under control</li><li>"My sense is that inflation is going to be a little more sustained than what people are looking for" </li><li>the Fed needs "substantially more evidence to get comfort" that inflation is declining</li><li>"I suspect they're going to need more increases in interest rates than the market is now judging or than they're now saying."</li></ul><p>Speculating on the peak for Fed funds:</p><ul><li>"Six is certainly a scenario we can write" </li><li>"And that tells me that five is not a good best-guess."</li></ul><p>I'm not sure Summers' opinion is any more valid than a lot of economists. Still, food for thought. </p><p>Lemme know in the comments what you reckon. </p>
This article was written by Eamonn Sheridan at forexlive.com.
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