Data on the three areas the Federal Reserve cares about most—inflation, employment and financial stability—are all indicating the central bank should hold off on raising interest rates, former Treasury Secretary Larry Summers said Thursday.
At present, inflation is below target, the labor force participation rate is lower than it’s been in a quarter of a century, and financial market volatility is elevated, he said.
“Today, when you’ve got real major uncertainties coming out of China, coming out of the other emerging markets; when it hasn’t been such an easy period in Japan; when worldwide you look at major countries, real interest rates are zero and everywhere inflation is expected to be below 2 percent, it’s very hard to see the case,” he told CNBC’s “Squawk Box.”
