The Federal Reserve Board building, Washington, D.C., U.S., July 1, 2020. /CFP
The Federal Reserve Board building, Washington, D.C., U.S., July 1, 2020. /CFP
The Federal Reserve’s tightening actions are having an impact on the U.S. economy, with a turn in labor demand and inventory buildups, former U.S. Treasury Secretary Lawrence Summers said.
“We’re seeing a little bit of indications that some firms are no longer reporting the kind of huge labor shortages that they were before,” Summers was quoted by Bloomberg on Saturday. “We’re seeing some indications of inventory buildups,” he added.
However, the overall picture remains as a “very stretched economy,” according to Summers.
Summers noted that history has shown that a recession will occur in two years when inflation exceeded 4 percent and unemployment drops below 4 percent.
“My best guess would be…
