The Federal Reserve needs to alert investors that in order to contain inflation, the central bank will have to impose a restrictive monetary policy that will drive up the U.S. unemployment rate, former Treasury Secretary Lawrence Summers said in a recent interview for Bloomberg Television.
Summers, who was also a director of the White House National Economic Council under President Barack Obama, said the leadership at the Fed is causing confusion among investors by avoiding a clear declaration on its future policy rate stance.
“My worst fear would be that the Fed will continue to be suggesting that it can have it all in terms of low inflation, low unemployment, and a healthy economy,” he said….