Fed may need to hike interest rates above 6% to crush inflation, Larry Summers says

Summers: Little evidence of 'inflation restraint' so far despite higher interest rates

Megan Henney / FOXBusiness

 

Stubbornly high inflation could force the Federal Reserve to aggressively raise interest rates above 6%, the highest in more than two decades, according to former Treasury Secretary Larry Summers. 

The U.S. central bank has embarked on one of the fastest courses in history to raise borrowing costs and slow the economy. Policymakers have already increased the benchmark federal funds rate from near-zero in March to a range of 3.75% to 4%, the highest since the 2008 financial crisis. 

Despite the steeper interest rates, inflation is still running near a 40-year high, with the Labor Department reporting that the consumer price index rose 8.3% in September on an annualized basis. 

The unrelenting rise in consumer prices may ultimately give the Fed no choice but to hike interest rates above the projected peak rate of 4.6% next year, Summers said during an interview on Bloomberg TV. Read more and see video here.

Disturbing: Women Can Now Get An Abortion At Nine Months In California 

Sarah Arnold / Townhall Tipsheet

How Gov. Gavin Newsom survived a recall election and then sailed through to victory in Tuesday’s midterm elections is a whole other issue to be discussed.

Right now, Americans need to worry about what the passing of Proposition 1 means for unborn babies’ lives in California. 

Nearly two-thirds of California voters approved a measure on the ballot to preserve the “right” to abortion and contraception in the state constitution. 

Prop 1., would allow women to receive an abortion up until the time of birth, or when the baby is viable, meaning there are no limitations for when an unborn baby’s life could be cut off.