Summers Says Fed Policy On ‘Loose Side,’ Inflation Top Issue (1)

Former Treasury Secretary Lawrence Summers said Federal Reserve policy is leaning toward being too slack, emphasizing that the US economy’s biggest risks lie in inflation rather than the job market.

“My own guess is that policy is currently a little looser — looking at all financial conditions — than people view it as being,” Summers said on Bloomberg Television’s Wall Street Week with David Westin. “The balance of risks is a bit more tilted towards inflation rather than unemployment.”

Summers spoke after Fed policymakers cut their benchmark interest rate for the first time in a ...