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Summers Praises Powell, Warns Inflation Could Erode US Economic Credibility
Former US Treasury Secretary Larry Summers discusses the Federal Reserve’s latest rate cut and why Chair Jerome Powell’s cautious tone on a potential December cut was “exactly right.” Summers says inflation remains a bigger threat than unemployment, and warns that high deficits and global AI competition could test US leadership. He also credits President Trump with the progress made on trade with China, but warns that we are in the “early chapters” of the book.
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