In them, he argued that the key to combating inflation is raising "real," or inflation-adjusted, interest rates. With inflation currently around 7% and the Fed's benchmark rate below 0.5%, real rates are deeply negative. (https://www.washingtonpost.com/…)In a second op-ed, Summers wrote that real rates "likely will have to reach levels of at least 2 or 3% for inflation to be brought under control. If they expected inflation so virulent it forced the Fed to 5%-plus interest rates, their fears would be reflected in bond-market movements. Summers' op-ed: "The Stock Market Liked the Fed's Plan to Raise Interest Rates.

Source: Wall Street Journal April 04, 2022 14:56 UTC