Summers warns of 'hot economy'

Former Treasury Secretary Lawrence Summers said the US economy remains “very, very hot,” although not as hot as it was 6 to 12 months ago. Former US Treasury Secretary Lawrence Summers, one of the first economists to draw attention to the risk of inflation on the horizon following the coronavirus pandemic, warned that the US economy is still “very, very hot.” Speaking at the Caixin Asia New Vision Forum in Singapore, Summers said, “The US economy remains very, very hot, although not much hotter than it was 6-12 months ago. The US is a 4.5%-5% inflation country today.” Summers stated that the “soft landing” scenario offers hope, even though past experience suggests otherwise. According to Summers, the commercial real estate sector will be one of the areas that will experience trouble. Summers called for the US and China to increase cooperation on climate change and diplomacy with low-income countries.