(Bloomberg) — Former Treasury Secretary Lawrence Summers said that the Federal Reserve ought to hold an immediate meeting to end its quantitative easing program — now scheduled to end next month — to underline its determination to tame inflation.
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“The Fed should have a special meeting, right now, to end QE,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “It is nothing short of preposterous that in an economy with 7.5% inflation, that in an economy with the tightest labor market we’ve seen in two generations, that the central bank is still as we speak growing its balance sheet.”
Summers spoke a day after the January consumer-price index report showed a bigger-than-expected jump in inflation, with gains reflecting broad increases that included higher food, electricity and housing costs.
“This confirms just how far…
