Whether U.S. Inflation is worsening continues to stir up heated debates! Former U.S. Treasury Secretary Summers was interviewed by foreign media on Friday (26), warning once again that Washington’s massive stimulus measures and the Federal Reserve’s “watering down” will exacerbate the risk of rising inflation in the U.S., arguing that the authorities’ rush to push measures is a “clear mistake”.
Summers, who has held key positions in two Democratic administrations, pointed out that according to the new policy framework proposed by the chairman of the Federal Reserve, an overheated economy may not cause inflation, which means seeking to decouple inflationary expectations, while the new administration said the local has fully entered the progressive era, will reverse the policies of the past 40 years, is also an attempt to decouple inflationary expectations. He said earlier that the stimulus measures injected too much cash into the economy, so that demand exceeded capacity constraints and triggered inflation, suggesting that long-term investment should be focused.
The White House Council of Economic Advisers Chairman Rouse the same day in a visit to defend Washington’s plans to increase spending, saying that although the United States has the potential risk of rising inflation, but the degree of inadequate scarring of the economy, on the contrary, the impact of insufficient Food for families on children is greater.
However, Summers in the visit in favor of the Biden administration to reform the tax system to increase revenue, including plugging tax loopholes, cooperation with other countries to prevent tax avoidance, as well as into the introduction of the lowest corporate tax rate.