Larry Summers Says a Recession is Likely on the Way

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With inflation roaring, bond yields jumping and the Federal Reserve seemingly poised to impose big interest rate increases, fear of recession is rising.

Consumer prices surged 8.5% in the 12 months through March, and the 10-year Treasury yield has gained 132 basis points this year to 2.83%. Meanwhile, the Fed began lifting rates in March, by 25 basis points. 

Interest rate futures traders see an 87% probability of at least another 225 basis points of tightening this year.

Former Treasury Secretary Larry Summers, now a Harvard professor, has been warning about the increasing risk of recession.





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