{"id":2217961,"date":"2024-04-10T21:41:02","date_gmt":"2024-04-11T01:41:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrat-economist-who-warned-biden-of-inflation-in-2021-sounds-alarm-again-markets-could-crash\/"},"modified":"2024-04-10T21:43:46","modified_gmt":"2024-04-11T01:43:46","slug":"democrat-economist-who-warned-biden-of-inflation-in-2021-sounds-alarm-again-markets-could-crash","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrat-economist-who-warned-biden-of-inflation-in-2021-sounds-alarm-again-markets-could-crash\/","title":{"rendered":"Economist Warns of Inflation Again in 2021: &#8216;Markets Could Crash"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdemocrat-economist-who-warned-biden-of-inflation-in-2021-sounds-alarm-again-markets-could-crash%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2217961&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Democrat economist Larry Summers has once again sounded the alarm on escalating inflation \u2064rates, surpassing official\u200b government numbers. He points out \u2062key drivers behind the surge, affecting various sectors like \u200ccar insurance, \u200bgroceries, and energy. Summers predicts that interest rates \u200bcould rise further, potentially leading to market instability. His\u2064 warnings emphasize the urgency of addressing the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/why-xi-jinpings-invasion-of-taiwan-is-inevitable-but-not-imminent\/\" title=\"Why Xi Jinping\u2019s Invasion Of Taiwan Is Inevitable But Not Imminent\">current economic challenges<\/a>.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p>Democrat economist <a href=\"https:\/\/www.dailywire.com\/topic\/larry-summers\" target=\"_blank\" rel=\"noopener\">Larry Summers<\/a>, who repeatedly warned President Joe Biden in 2021 that his <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/poll-more-than-half-of-americans-say-bidens-economy-is-in-poor-shape\/\" title=\"POLL: More Than Half Of Americans Say Biden\u2019s Economy Is In Poor Shape\">reckless government spending<\/a> would lead to a serious inflation crisis, warned again this week that things have not improved and inflation is running much higher than the official government numbers state.<\/p>\n<p>Summers\u2019 warning comes after Biden\u2019s\u00a0economy took a gut punch on Wednesday when a hotter-than-expected inflation report was released, showing a 3.5% increase over the last 12 months \u2014 the highest year-over-year increase since last September.<\/p>\n<p>According to the latest <a href=\"https:\/\/www.cnn.com\/2024\/04\/10\/markets\/markets-fall-cpi-inflation-report\/index.html\" target=\"_blank\" rel=\"noopener\">Consumer Price Index data<\/a> \u2014 which was released by the Bureau of Labor Statistics \u2014 key drivers of the higher rates include car insurance, groceries, electricity, and gas. New parents and pet owners are feeling the pinch as well, with baby food now up over 30% since 2021 and pet food up 23.7%.<\/p>\n<p>The higher-than-expected inflation numbers come just a day after Treasury Secretary Janet Yellen claimed that overall household finances were \u201c<a href=\"https:\/\/www.dailywire.com\/news\/sec-yellen-econ-splains-to-average-americans-your-finances-are-fine-everything-is-fine\" target=\"_blank\" rel=\"noopener\">quite strong<\/a>\u201d \u2014 and may put a sizable kink in any plans to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-claims-of-economic-victory-slapped-back-by-worse-than-expected-inflation-report\/\" title=\"Biden's Economic Triumph Claims Clashed with Disappointing Inflation Report\">begin bringing interest rates back<\/a> down.<\/p>\n<p>\u201cI was not hugely surprised by the numbers,\u201d Summers said when asked during a Bloomberg News interview on Wednesday what he thought about the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ortiz-bidenflation-is-the-next-pandemic\/\" title=\"Ortiz: Bidenflation Is the Next Pandemic\">latest inflation numbers<\/a>. \u201cIn an economy that\u2019s growing faster than potential, with an unemployment rate that has a three handle in the presence of massive and growing budget deficits and epically easy financial conditions, the idea that inflation would remain robust, or even accelerate, should not be a surprise to anyone.\u201d<\/p>\n<p>Summers said that inflation is actually running higher than the 3.5% number that the Biden administration released.<\/p>\n<p><b><a href=\"https:\/\/onelink.to\/dwapp\" target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"sk-tooltip-9096\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/onelink.to\/dwapp&#038;source=gmail&#038;ust=1700760801843000&#038;usg=AOvVaw2PQrVSrJfhxNb4LcARqniG\">CLICK HERE TO GET THE DAILYWIRE+ APP<\/a><\/b><\/p>\n<p>\u201cIt was not me or some outside observer who emphasized the concept of super core inflation \u2014 that is taking out the transitory stuff and also taking out housing \u2014 and by that measure, inflation is running at above a 6% rate,\u201d he said. \u201cAnd the three month rate exceeds the six month rate and the six month rate exceeds the one year rate.\u201d<\/p>\n<p>Summers warned that interest rates are likely to climb even higher now \u2014 making it harder for Americans to buy homes and cars \u2014 and that \u201cmarkets could crash.\u201d<\/p>\n<p>\u201cThis confirms the idea that the neutral rate is way above the 2.6% level that the Fed has been using as a North Star,\u201d Summers said. \u201cIn my view puts back on the table, it is still not what I would expect, but you have to take seriously the possibility that the next rate move will be upwards rather than downwards. And anything could happen, markets could crash, the indicators could turn down. But on current facts, a rate cut in June, it seems to me would be a dangerous and egregious error comparable to the errors the Fed was making in the summer of 2021 when it just didn\u2019t get the threat on inflation.\u201d<\/p>\n<p>WATCH:<\/p>\n<blockquote class=\"twitter-tweet\" data-media-max-width=\"560\">\n<p dir=\"ltr\" lang=\"en\">.<a href=\"https:\/\/twitter.com\/LHSummers?ref_src=twsrc%5Etfw\">@lhsummers<\/a>, former US Treasury Secretary and Wall Street Week contributor, says he\u2019s not surprised inflation rose again in March, but he says an interest rate cut in June by the Federal Reserve would be dangerous <a href=\"https:\/\/t.co\/VVbO71W83N\">https:\/\/t.co\/VVbO71W83N<\/a> <a href=\"https:\/\/t.co\/enjnKsEm5Z\">pic.twitter.com\/enjnKsEm5Z<\/a><\/p>\n<p>\u2014 Bloomberg TV (@BloombergTV) <a href=\"https:\/\/twitter.com\/BloombergTV\/status\/1778105927066915298?ref_src=twsrc%5Etfw\">April 10, 2024<\/a><\/p>\n<\/blockquote>\n<p>Summers warned last year that the trend for inflation rates under Biden closely match the inflation rates during President Jimmy Carter\u2019s administration and that America may not have seen the worst of inflation yet.<\/p>\n<p>\u201cIt is sobering to recall that the shape of the past decade\u2019s inflation curve almost perfectly shadows its path from 1966 to 1976 before it accelerated in the late 1970s,\u201d Summers wrote in a post on X that included a graph showing how inflation under Biden has mirrored inflation under Carter.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">It is sobering to recall that the shape of the past decade\u2019s inflation curve almost perfectly shadows its path from 1966 to 1976 before it accelerated in the late 1970s. <a href=\"https:\/\/t.co\/UpEk7x6FQt\">https:\/\/t.co\/UpEk7x6FQt<\/a> <a href=\"https:\/\/t.co\/q9PwBRKzxN\">pic.twitter.com\/q9PwBRKzxN<\/a><\/p>\n<p>\u2014 Lawrence H. Summers (@LHSummers) <a href=\"https:\/\/twitter.com\/LHSummers\/status\/1695045318524440688?ref_src=twsrc%5Etfw\">August 25, 2023<\/a><\/p>\n<\/blockquote>\n<p><em>Virginia Kruta contributed to this report. <\/em><\/p>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Democrat economist Larry Summers, a vocal critic of President Biden&#8217;s spending policies in 2021, reiterates concerns over soaring inflation this week. Summers highlights that inflation rates surpass official figures, signaling a potential economic downturn. His recent alarm follows challenges faced by Biden&#8217;s economic agenda<\/p>\n","protected":false},"author":102,"featured_media":2217962,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/dw-wp-production.imgix.net\/2021\/10\/Larry-Summers-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-2217961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/dw-wp-production.imgix.net\/2021\/10\/Larry-Summers-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2217961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2217961"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2217961\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2217962"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2217961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2217961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2217961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}