Larry Summers Says Americans Will Have to Lose Jobs to Ease Inflation


Larry Summers, former Treasury Secretary, said Monday that the U.S. unemployment must rise before Americans can see relief from inflation.

U.S. inflation stands at 8.6% year-over, which is the highest level in over 40 years and shows no sign of slowing. Summers claims that the U.S. should maintain a rate of unemployment greater than 5% for five consecutive years in order to reduce inflation.

According to Bloomberg, Summers stated that to control inflation, five years of unemployment over 5% is necessary. In other words, two years of 7.5% unemployment, five years at 6% unemployment, or one year at 10% unemployment are required.

He added that “there are numbers which are remarkably disconcerting relative to the Fed Reserve views.”

The U.S. unemployment rate is currently at 3.6%

Summers’ statement was made hours after President Joe Biden said that a recession wasn’t inevitable. After a conversation with Summers, he said that he reached this conclusion.

Biden made the statement in a heated exchange with reporters this weekend while on vacation to Delaware.

“Economists say that a recession will be more likely than ever,” can be heard a reporter saying to Biden while on a beach.

Biden stated, “Now you sound like an American politician, I’m laughing, that was a joke, that wasn’t a joke, that is a joke,” “But all jokes aside, I don’t believe it is. Larry Summers told me this morning that a recession is not inevitable.

Summers predicted a recession during a Sunday interview on NBC. Many high-ranking CEOs are also starting to prepare for a recession.

“I believe there will be a recession. This is based on the fact that there has never been a situation such as this with inflation exceeding 4% and unemployment above 4%, without a recession within a year or so. Summers stated this weekend that the Fed will raise interest rates to prevent inflation.