Economic Recession ‘More Likely Than Not’ Says Former Treasury Secretary Lawrence Summers
deadline.comCNN’s State of the Union talk show highlighted two hot takes Sunday from former Treasury Secretary Lawrence Summers. The most startling was his pronouncement that an economic ecession was “more likely than not” within the next two years.Summers’s statement was in opposition to current Treasury Secretary Janet Yellen’s earlier comment that there is nothing to suggest a recession is in the works.
But in responding to a question from State of the Union anchor Dana Bash, Summers said he disagreed.“I think when inflation is as high as it is right now, and unemployment is as low as it is right now, it’s almost always been followed within two years by recession,” Summers said. “I look at what’s happening in the stock and bond markets.
I look at where consumer sentiment is. I think there is certainly a risk of recession in the next year. And I think given where we’ve gotten to.
It’s more likely than not that we’ll have a recession within the next two years.”He added, “That is something we can manage.
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