Larry Summers Warns of 1970s Style Inflation Crisis if Fed Pauses Inflation Fight

Slatestone Wealth chief market strategist Kenny Polcari encourages investors to look toward other sectors on ‘Making Money.’ The U.S. economy faces an increased threat of a 1970s-style stagflation crisis if the Federal Reserve prematurely pauses its fight to crush stubbornly high inflation, former Treasury Secretary Larry Summers said on Friday. The warning came in response to a controversial theory among some economists, including former International Monetary Fund chief Olivier Blanchard, that the inflation target should be raised to 3% from 2%.“To suppose that some kind of relenting on an inflation target …