Former Treasury Secretary Larry Summers said that millions of Americans would have to lose their jobs in order to contain decades-high inflation.
“We need five years of unemployment above 5 percent to contain inflation—in other words, we need two years of 7.5 percent unemployment or five years of 6 percent unemployment or one year of 10 percent unemployment,” said Summers, who was in charge of the Treasury under former President Barack Obama.
“There are numbers that are remarkably discouraging relative to the Fed Reserve view,” he added, according to Bloomberg News.
Currently, the U.S. unemployment rate sits at around 3.6 percent. Department of Labor figures show that year-over-year inflation hit 8.6 percent in May 2022, reaching highs not seen in 40 years….