🔶 Summers: The U.S. economy is likely to be in recession and the Fed’s interest rate hike cycle is nearing the end

According to news on January 14, former U.S. Treasury Secretary Summers said that despite encouraging news in recent weeks, the U.S. economy still faces a recession this year. One has to be careful about false dawns, and I still think a recession is more likely than not this year. The latest U.S. inflation report released the day before showed that the year-on-year increase in CPI further slowed to 6.5%, the lowest level since October 2021. Summers said this evidence of subdued wage growth was "good news" in the near term after corporate earnings growth slowed in December. Summers has argued for some time that only a recession could bring U.S. inflation down toward the Fed's 2% target. He expects the Fed's rate hike cycle to be coming to an end.