According to Odaily Planet Daily, former US Treasury Secretary Summers said that although the Federal Reserve failed to act quickly when inflation soared in 2021, it eventually took enough measures to correct the economy.

Summers said the Fed was “right” to cut interest rates at its September meeting, but stressed the need to be more cautious about the medium-term outlook for monetary policy.

Summers said the Fed will not be able to cut interest rates as much as the market expects over the next two years. Derivatives markets reflect that traders expect the Fed to cut its benchmark rate to about 3% over the next two years from its current target range of 5.25% to 5.5%.