Former U.S. Treasury Secretary warns: excessive stimulus fears to trigger price spikes and force the Federal Reserve to raise interest rates

Foreign media reports, former U.S. Treasury Secretary Summers warned that President Joe Biden’s $1.9 trillion stimulus bill, the inflation indicator issued a “red alert” that the market will provide demand far in excess of any reasonable estimate of economic potential in the coming years, meaning that prices will rise sharply.

Summers said that excessive stimulus will lead to a sharp rise in prices and force the U.S. Federal Reserve to raise interest rates, which could stifle the recovery or even trigger a recession.