Americans Facing Major Job Loses
This is not good.
In a surprising turn of events, former Treasury Secretary Larry Summers stated that unemployments rates in the United States will have to RISE in order for inflation to begin going down.
According to Fox, Inflation is currently sitting at a 40-year-high at 8.6%. Summers believes that the U.S. jobless rate must be more than 5% for five years for inflation to begin coming down.
During a recent speech, Summers stated, “We need five years of unemployment above 5% to contain inflation – in other words, we need two years of 7.5% unemployment or five years of 6% unemployment or one year of 10% unemployment.”
“There are numbers that are remarkably discouraging relative to the Fed Reserve view,” he added.
America’s unemployment rate is currently at 3.6%.
Biden recently claimed that he had a discussion with Summers and suggested that a recession was not inevitable.
However, Summers contradicted Biden and said, “My best guess is that a recession is ahead. I base that on the fact that we haven’t had a situation like the present with inflation above 4% and unemployment beyond 4% without a recession following within a year or two. And so I think the likelihood is that in order to do what’s necessary to stop inflation the Fed is going to raise interest rates enough that the economy will slip into a recession.”
