Reported 4 months ago
Former US Treasury Secretary Lawrence Summers predicts higher long-term interest rates over time, stating that the yield on the 10-year Treasury note is currently around 4.3%. Summers, now a Harvard University professor and Bloomberg contributor, believes that inflation is not on a convincing trajectory to meet the Federal Reserve's 2% target, and he emphasizes the need to adjust to a 4.5% neutral interest rate, suggesting less Fed cutting than anticipated. His remarks were made during an Economic Club of New York webinar with former White House chief economist Glenn Hubbard, who broadly agreed with Summers's assessment on inflation and the economy's future direction.
Source: YAHOO