Summers: Fed is not ready for next crisis
Secular stagnation has left Federal Reserve short on firepower, economist says
The US faces a growing threat of recession and the Federal Reserve is not in a position to respond, economist Larry Summers said on April 6.
Summers has long been a proponent of the idea of "secular stagnation" – that a combination of strong saving and weak investment is putting downward pressure on long-run real interest rates. During a lecture at the St Louis Fed, he tied secular stagnation to looming fears of a recession in the US.
Summers, president emeritus of Harvard University and a
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