Updates - Monetary Policy

Larry Summers: 50 Basis Point Cut in September Was ‘A Mistake’

Max Zimmerman
Bloomberg
October 04, 2024

“With the benefit of hindsight, the 50 basis point cut in September was a mistake, though not one of great consequence,” Larry Summers says in a post on X.

  • Employment report confirms suspicions we’re in a “high neutral rate environment” where monetary policy requires caution in rate cutting
  • “No landing” and “hard landing” are risks the Fed has to reckon with