Former US Treasury Secretary Summers: Trump's interest rate preference could trigger inflation expectations.

Former US Treasury Secretary Lawrence Summers warned that President Donald Trump's preference for the Federal Reserve's interest rate setting could lead to a surge in inflation expectations, pushing up long-term borrowing costs. "I don't know of any mainstream economist who supports rates as low as 1% in the current environment," Summers said. He pointed out that this approach "may bring about temporary prosperity to the economy, but the cost is triggering serious inflation fears."