Former Obama economic advisor and Treasury Secretary Larry Summers has warned that quote “a recession is ahead” under the Biden administration.
Summers noted that the current economic situations with high inflation and unemployment have historically resulted in a recession within a “year or two.”
While he did make it clear no one has a crystal ball when it comes to economic affairs and economic forecasts always hold some era of “uncertainty” his best guess is a recession is ahead.
Summers said while appearing on NBC’s “Meet The Press.” “I base that on the fact that we haven’t had a situation like the present with inflation above 4 percent and unemployment beyond 4 percent without a recession following within a year or two.”
Summers added that it’s likely “that in order to do what’s necessary to stop inflation. the Fed is going to raise interest rates enough that the economy will slip into recession.”
He went on to say,
“And I think that view, which was not a common view a couple months ago, is now the view of a number of statistical models and the view of a range of forecasters and I think will increasingly become a consensus view,” Summers continued.
The current Treasury Secretary Janet Yellen and Biden have both shrugged off concerns about rising prices and current economic woes.
Joe Biden has boldly asserted that the economy is in a better place than before he then also has said, “secondly, we’re in a stronger position than any nation in the world to overcome this inflation.”