Larry Summers says it’s ‘more likely than not’ there will be a recession within 18 months

Former Treasury Secretary Larry Summers predicted that America will experience a recession within the next 18 months during an appearance on CNN’s “The Situation Room with Wolf Blitzer” on Thursday.

“I think it’s more likely than not that within the next year or 18 months we’ll have a recession. I think that’s a consequence of the excesses that the economy has been through, and the “Historical experience suggests that the kind of inflation that we rarely have returns to normal levels, to target levels of around 2% without some kind of recession,” Summers said.

“Now I don’t think that means we’re going to have something like we had after COVID or something like we had during the [2008] financial crisis, but I think we’ve had a very significant recovery period and I think the other side of that will probably be a downturn,” he continued.

YELLEN SAYS OPEC OIL PRODUCTION CUTS ARE BAD FOR THE GLOBAL ECONOMY

Larry Summers, director of President Barack Obama’s National Economic Council, speaks at the Future of Global Finance conference at Georgetown University’s McDonough School of Business in Washington, September 18, 2009.
(REUTERS/Hyungwon Kang)

Summers, who served as treasury secretary under the Clinton administration and economic adviser under the Obama administration, noted during the interview that OPEC’s decision to cut oil production will exacerbate inflation and increase risks. of recession. He argued that the United States needed to increase its domestic oil production.

He argued that the United States must reduce “its dependence on unstable and problematic regions of the world for our energy.”

“That means Senator Manchin’s permitting policies, whether it’s allowing pipelines or allowing more natural gas production, or allowing more electricity transmission, must evolve just as quickly. as possible,” Summers said.

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Former Treasury Secretary and White House Economic Advisor Larry Summers is interviewed by FOX News' Maria Bartiromo at FOX Studios on May 24, 2017 in New York City.

Former Treasury Secretary and White House Economic Advisor Larry Summers is interviewed by FOX News’ Maria Bartiromo at FOX Studios on May 24, 2017 in New York City.
(Robin Marchant/Getty Images)

“Natural gas, although it is a hydrocarbon, is a good thing and not a bad thing and the more of it we produce the better off we will be, the safer we will be, and in fact it will often replace coal , the less hydrocarbons and carbon dioxide we will emit into the air,” Summers continued.

Democrats, such as Rep. Rashida Tlaib, Michigan, have railed against domestic natural gas production. During a House Financial Services Committee hearing last month, Tlaib lambasted the CEOs of America’s biggest banks for refusing to sign on to his sweeping climate demands.

After JP Morgan Chase CEO Jamie Dimon told Tlaib that his demand to cut all funding to all oil and gas projects “would be the way to hell for America”, Tlaib tried to trigger a rush to his company.

Larry Summers said Sunday that a recession is "almost inevitable."

Larry Summers said on Sunday that a recession is “almost inevitable”.
(Screenshot/BloombergTV/WallStreetWeek)

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Summers has been sounding the alarm about a recession in recent months. In September, Summers told Bloomberg News that “we’re almost certainly going to see a downturn in the economy” in the near future.

Early in the Biden administration, Summers warned fellow Democrats about inflation. His warnings were dismissed by most Democrats.

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