Fed Rate Cut Now Would Be ‘Playing With Fire’ Amid Risk of Credibility Loss, Says Former Treasury Secretary Larry Summers

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Former U.S. Treasury Secretary Larry Summers believes there is no urgent need for the Federal Reserve to cut interest rates. In a new Bloomberg interview, Summers says instituting a rate cut now would be akin to “playing with fire.” According to the former Treasury Secretary, the Federal Reserve is better off waiting a bit longer for more economic data to make a more informed decision on the Fed Funds rate. Says Summers, “There certainly are some risks of a downturn. There are also some inflatio...