Former Clinton Treasury secretary: Biden administration not grasping concern of inflation

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Former Clinton treasury secretary Larry Summers raised concerns on Thursday over the economy and inflation during an interview on CNN’s “New day.”

“I do think that unfortunately some of the predictions that I made about the consequences of stimulus do seem to have come true,” Summers told CNN host Brianna Keilar. Summers predicted earlier this year that increased government spending from the coronavirus stimulus packages would set off “inflationary pressures” that haven’t been seen in a generation. 

Summers, who has criticized Democrats’ plans to spend trillions of dollars, clashed with the Treasury Secretary Janet Yellen when she claimed he was “wrong” for worrying about out-of-control inflation.

“I think it’s a mistake to think of this as only an issue about stimulus,” Summers added. “It’s also an issue around what’s happened with the Federal Reserve. It’s also an issue around the fact that Covid mutated into the Delta variant. It’s also related to broad geopolitical developments and climate that have impacted on the energy markets.”

Keilar asked how long Summers expected this inflation to last, leading Summers to admit the economy may be suffering for longer than anticipated.

“I think it’s almost certain to last for another six to nine months, and it could well last longer,” he answered.