Larry Summers Says Fed 'Closer to Done' on Inflation Fight

The video discusses the likelihood of a recession, noting some positive signs like wage restraint but cautioning against premature optimism. Inflation remains high compared to recent years, and while the Federal Reserve's efforts in disinflation are progressing, a recession is still likely. The Employment Cost Index is highlighted as a crucial measure of labor costs. The upcoming Federal Reserve meeting will consider whether to pause rate hikes, but it's deemed premature to do so now. The focus remains on controlling inflation and maintaining credibility.

What is the speaker's stance on pausing interest rate changes in February?

Why does the speaker believe it is premature to think about pausing interest rate adjustments?