Larry Summers Says a Recession is Likely on the Way


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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