Summers Says Fed Should Raise Rates Four Times Next Year

Jay Powell testified before Congress, acknowledging that inflation is more pervasive than expected. He suggested moving up the timeline for tapering and retiring the term 'transitory' from inflation discussions. The real interest rate is at a historic low, indicating a need to end QE and consider rate hikes. Four rate increases next year are proposed to restore credibility and address inflation, with caution to avoid recession risks.

What did Jay Powell say about the current state of inflation?

What is the significance of retiring the word 'transitory' from the inflation discussion according to the speaker?

What does the speaker suggest about the current real interest rate?

What actions does the speaker believe should be taken regarding quantitative easing (QE)?

What concerns does the speaker express about potential interest rate hikes and their impact on the economy?