- Former US Treasury Secretary Lawrence Summers mentioned it is “possible” that the nation will see a recession.
- “I believe there is definitely a danger of recession within the subsequent 12 months,” he instructed CNN on Sunday.
- His opinion opposes Janet Yellen, who mentioned final week nothing is pointing to a recession.
Former US Treasury Secretary Lawrence Summer season instructed that “it is greater than possible” the nation will grapple with a
recession
“throughout the subsequent two years.”
“I believe when inflation is as excessive as it’s proper now, and unemployment is as little as it’s proper now, it is virtually all the time been adopted inside two years… by recession,” Summers mentioned on CNN’s “State of the Union” on Sunday.
“I take a look at what’s occurring within the inventory and bond markets. I take a look at the place client sentiment is,” he added. “I believe there is definitely a danger of recession within the subsequent 12 months. And I believe, given the place we have now gotten to, it is extra possible than not that we’ll have a recession throughout the subsequent two years.”
—CNN (@CNN) June 12, 2022
He was responding to host Dana Bash’s query about present US Treasury Secretary Janet Yellen’s latest remarks, the place she eased the fears of a doable recession, saying “there’s nothing to recommend {that a} recession is within the works.”
“Shopper spending could be very sturdy, funding spending is stable,” she mentioned on the New York Instances Dealbook convention in Washington DC final week, responding to issues tweeted by hip hop star Cardi B.
Throughout the interview, Summers added {that a} recession is one thing the US can tackle.
“That’s one thing we will handle. Now we have had them for the entire historical past of the nation,” Summers mentioned. “We should be ready and to reply shortly if and when it occurs.”
