Summers sees US Soft Landing More Possible Than Few Months Ago.
Former Treasury Secretary Lawrence Summers said that a soft landing for the US economy is looking more likely, though inflation gauges remain too high.
Summers said in an interview on CNN's Fareed Zakaria GPS broadcast Sunday that I d say I m encouraged but I still think it would be a mistake to say we are out of the woods. The Federal Reserve's target may still prove difficult to get back to its goal, he said. Inflation indicators remain unimaginably high compared to two or three years ago.
The US economy added 517,000 new jobs in January, surpassing estimates and putting the unemployment rate at 3.4%, the lowest since 1969, as the US economy's consumer price increases slowing.
Summers said that it appears more likely that we will have a soft landing than we did a few months ago.
After the surge in jobs growth, Summers highlighted the risk of a sudden downturn in the economy.
Summers, a Harvard University professor and paid Bloomberg contributor, said on Bloomberg Television s Wall Street Week that the income will be spent to lift the economy or if companies at some point have too much inventory and too many workers.