Summers warns of 1970s crisis if central banks relent on rates

Bloomberg/Phillip Aldrick/1-20-2023

“Going soft on inflation will plunge economies back into the recessionary depths of the 1970s and have “adverse effect on working people everywhere,” former US Treasury Secretary Larry Summers warned.”

USAGOLD note: We have made consistent reference to the 1970s Fed strategy that kept interest rates below the inflation rate – a policy that fostered stagflation and a strong gold market. The Fed, in our view, is not going soft, it is already soft on inflation and has been since it first surfaced as a problem several months ago.