Larry Summers says jobs report shows Fed's half-point rate cut was 'a mistake'

Published On Oct 4, 2024, 1:10 PM

Larry Summers, a former U.S. Treasury Secretary, stated that the recent jobs report indicating an addition of 254,000 jobs in September demonstrates the Federal Reserve's recent half-point rate cut was premature. He emphasized that this report suggests a high neutral rate environment where the Fed should be cautious in its monetary policy. After the jobs report, the likelihood of a 25-basis point cut in November increased significantly according to market analysts.