Former U.S. Treasury Secretary Summers criticized the bipartisan inflationary explosion, creating huge risks and the “most irresponsible” economic policy in 40 years.

Former U.S. Treasury Secretary Lawrence Summers.

Bloomberg reported that former U.S. Treasury Secretary Lawrence Summers warned that the overall economic policy of the United States at this Time could be considered “the most irresponsible” in the past 40 years, and accused both the Democratic and Republican parties of creating “enormous” risk.

Summers said in a Bloomberg TV interview on the 20th, the U.S. fiscal policy outlook is more gloomy, the recovery after the Epidemic will stimulate demand, coupled with the Federal Reserve (Fed) indicated that at least the next two years not to raise interest rates, and continue to let the balance sheet expansion, “originally ignited, now become detonated” Inflation.

He went on to say, “I think these are the most irresponsible fiscal policies in the last 40 years in our country. I think, basically, it’s driven by the intransigence of the left wing of the Democratic Party and the intransigence and total irresponsibility of the Republican Party as a whole.”

Summers, who has held key positions in the administrations of the two previous Democratic presidents and is a heavyweight economist who tilts the Democratic Party, has recently spoken out frequently to criticize the current President Biden‘s $1.9 trillion epidemic bailout package as being too large and potentially touching off inflation in one fell swoop. He again warned in this Bloomberg TV interview that the United States is facing “quite a dramatic fiscal and monetary (policy) collision”.

Summers said that the United States has a one-third chance of seeing inflation accelerate in the next few years, into the so-called “stagnant inflation” (stagflation); another one-third chance of inflation will not break out, because the Fed may have to step on the brakes, a large increase in interest rates, pushing the economy down to the brink of recession; the remaining The remaining one-third chance is that the Fed and the Treasury Department to work together to contribute to the rapid economic growth without the risk of inflation.

He said: “But for the moment, the greater risk is that the kind of general economic policy will cause significant danger, more serious than I can remember.”