Larry Summers Warns That Interest Rates Have to Go Much Higher

Former Treasury Secretary Lawrence Summers says the Fed will have to raise rates more dramatically to deal with inflation. St. Louis Federal Reserve President James Bullard, the lone dissenting vote in this week’s decision to raise short-term rates by a quarter-point, said he thinks the Fed needs to raise its interest rate target for the year. Federal Reserve Governor Christopher Waller seconded that view Friday, saying bigger hikes should be on the table at future meetings. “Perhaps we’re moving in the right direction,” Summers said, “but I think there’s a long way to go, and I don’t think the Fed has really done all that will be necessary to preserve its credibility in the face of the substantial inflation that I think is likely to come to us” . . .