According to BlockBeats, on September 20, former U.S. Treasury Secretary Summers said that inflation may cause the Fed to cut interest rates less than expected in the next few years. He said, "In terms of monetary policy, the Fed faces the risk of rising inflation if it wants to actually cut interest rates as much as it predicts."

The median federal funds rate predicted by Fed policymakers in the latest dot plot is 3.4% at the end of next year, which is equivalent to a possible 150 basis point cut on the basis of the 50 basis point cut announced on Wednesday.

Summers said that once inflationary pressures reappear, interest rates will not fall as much as officials predicted in the dot plot. He reminded that investors also overestimated the Fed's next easing efforts.