Former US Treasury Secretary Summers: The magnitude of interest rate cuts in the next few years is expected to be less than that predicted by the Federal Reserve.

Jinshi data, September 20th news, former US Treasury Secretary Summers said that inflation may make the Fed’s interest rate cuts in the next few years less than expected. He said, “in terms of monetary policy, for the Fed to actually cut interest rates as much as its forecast, it faces the risk of rising inflation.” Fed officials predicted in the latest dot plot that the median federal fund interest rate for next year will be 3.4%, which means that on the basis of the 50 basis point rate cut announced on Wednesday, it may cut another 150 basis points. Summers said that if inflation pressure reappears, the interest rate will not drop as much as officials predicted on the dot plot. He warned that investors are also overestimating the Fed’s next easing efforts.