Remember when Larry Summers said Unemployment needs to be 10% for one year to bring inflation down?

Larry Summers Unemployment Larry Summers says the unemployment rate will likely rise much higher as the Fed tightens policy. Getty Images

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • Larry Summers warns unemployment must rise to cool inflation
  • Ex-Treasury Secretary Larry Summers warned that millions of currently employed Americans must lose their jobs in order for the Federal Reserve to succeed in its bid to cool inflation
  • “We need five years of unemployment above 5% to contain inflation — in other words, we need two years of 7.5% unemployment or five years of 6% unemployment or one year of 10% unemployment,” Summers said Monday during a speech in London, according to Bloomberg.

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