<p>Former U.S. Treasury Secretary Lawrence Summers warned that President Donald Trump's preference for Federal Reserve interest rate settings could trigger a surge in inflation expectations, raising long-term borrowing costs. &#34;I don't know of any mainstream economist who supports a rate like 1% in the current environment,&#34; Summers said. He pointed out that this approach &#34;might bring a temporary boom to the economy, but at the cost of triggering severe inflationary psychology.&#34;</p>

<p>Former U.S. Treasury Secretary Lawrence Summers warned that President Donald Trump's preference for Federal Reserve interest rate settings could trigger a surge in inflation expectations, raising long-term borrowing costs. "I don't know of any mainstream economist who supports a rate like 1% in the current environment," Summers said. He pointed out that this approach "might bring a temporary boom to the economy, but at the cost of triggering serious inflationary psychology."</p>

Former U.S. Treasury Secretary Summers: Trump's interest rate preferences may ignite inflation expectations