Former U.S. Treasury Secretary Lawrence Summers, in a statement to local media yesterday, stated that the most likely thing to happen to the U.S. economy is that the U.S. economy is going into recession as people's concerns about inflation are increasing day by day.
Summers said all economic forecasts are vague, but the most likely forecast is for the United States to enter recession.
“I think it's because inflation is over 4% and unemployment is over 4%, and there's no recession in a year or two,” Summers said. We have never seen such a situation before,” he said.
Summers also added that the US administration can reduce interest rates to a level that will put the economy into recession in order to control inflation.
Meanwhile, US Treasury Secretary Janet Yellen said on the same day that the impending recession was not "inevitable" as the Fed took increasingly radical steps to deal with rapidly rising inflation.
Estimating that the economy will slow down and a stable growth will begin, Yellen said that this would be a very natural process, but she did not think that a recession was inevitable.