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DC: OBAMA HOSTS GOVERNOR’S MEETING AT WHITE HOUSE
WASHINGTON (77WABC) — There are predictions of a recession in the United States from former Treasury Secretary Larry Summers.
He said on that his “best guess” is there will be a recession in the U.S. amid growing concerns about inflation.
“Look, nothing is certain, and all economic forecasts have uncertainty. My best guess is that a recession is ahead,” Summers said on NBC’s “Meet The Press.” “I base that on the fact that we haven’t had a situation like the present with inflation above 4 percent and unemployment beyond 4 percent without a recession following within a year or two.”
Summers also said it’s likely “that in order to do what’s necessary to stop inflation, the fed is going to raise interest rates enough that the economy will slip into recession.” President Joe Biden said last Thursday that he believes a recession is “not inevitable.”
The Federal Reserve last week hiked interest rates three-quarters of a percentage point with additional hikes planned at thee fastest pace in nearly 30 years. Current Treasury Secretary Janet Yellen said in an ABC “This Week” interview on Sunday that she doesn’t believe that a recession is “inevitable.”
