This is the core of the interview. Summers says higher interest rates from the Fed brought down inflation, but can’t explain why. His previous explanation was that higher rates were needed to create unemployment. https://t.co/vZBk4AhCr3semafor.com/article/08/11/…
It wasn’t just Summers who thought things worked this way. Jerome Powell has been saying for a year that he’s trying to induce “pain” for the labor market. He hasn’t been able to do it, but inflation is down anyway.