Former U.S. Treasury Secretary warns of possible price pressures, saying the current rate cut cycle may be over

Four years after former US Treasury Secretary Lawrence Summers accused US fiscal and monetary policymakers of over-stimulating and potentially triggering the biggest inflation blowout in a generation, he warned of the danger of renewed price pressures. "This is probably the most sensitive moment for inflation escalation since the policy missteps in 2021 triggered severe inflation," Mr. Summers said. "This is a moment when we have to be very careful about inflation, even before you see the policy coming out of the White House". He urged the Federal Reserve to be vigilant about price pressures and argued that further rate cuts may not be forthcoming in the current cycle.