A former Treasury secretary on Friday predicted that the risk of a 2022 recession is increasing and revealed the one thing that might dampen inflation.
“The risks of a 2022 recession are significantly higher than I would have judged six or nine weeks ago,” Larry Summers, who was also former President Barack Obama’s director of the National Economic Council, told Bloomberg in an interview published Friday. A months-long recession would tamp down inflationary pressures, he also predicted.
“If the economy did go into recession in the next six to nine months, then you’d probably see a reduction in inflationary pressures,” Summers remarked….