Former Treasury Secretary Lawrence H. Summers said that former President Donald Trump, in many ways, set the stage for the inflation that the U.S. is witnessing and criticized Republicans over their irresponsible stance on the debt limit.
He said in an interview with CNN that those policies that talk populist and practicing the art of the deal for what America has that is close to oligarchs would be steps in the wrong direction.
Summers said President Joe Biden should use the government's purchasing power to make things cheaper, as is currently being done with pharmaceuticals.
Summer said that some Republican leaders are threatening to send the nation into default by not passing the debt limit.
What I have heard from a number of Republicans, including the Republican House Leader McCarthy, about threatening to not pass the debt limit and sending the country into default is chilling. The pain is compounded by the fact that there is a goal of cutting social security benefits. That is an irresponsible and unpatriotic policy that threatens both the strength of Americans and the people, a lot of whom are getting more than $40,000 from social security, according to Summers.
Market Moves: Major Wall Street indices closed higher on Tuesday ahead of the results of the mid-term elections, as investors and traders expect the Republicans to win control of the House of Representatives and possibly the Senate. The SPDR S&P 500 ETF Trust SPY ended Tuesday a 0.54% increase, while the Vanguard Total Bond Market Index Fund ETF BND gained 0.45%.
The Fed Independence: The former Treasury Secretary vowed for the independence of the central bank and for bringing down the deficit.
We need to do more to support the independence of the Federal Reserve. Over time, we need to bring down the budget deficit, and we need to increase the flexibility of the economy, according to Summers.
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