Ex-Treasury Secretary Warns of Deficit ‘Doom Loop,’ Says Fiscal Debates Need to Be ‘Back on the Table’

[Epoch-Times-Bot]

Ex-Treasury Secretary Warns of Deficit 'Doom Loop,' Says Fiscal Debates Need to Be 'Back on the Table'

Former Treasury Secretary Larry Summers said in a recent Bloomberg interview that fiscal debates need to be put “back on the table” as surging borrowing costs risk a potential deficit “doom loop.”
Summers made the remarks during Friday's edition of Bloomberg's "Wall Street Week," in which he said that the Biden administration’s big spending initiatives, including the student-loan forgiveness that caused the monthly deficit to jump 562 percent, could shake investor confidence.
"If your deficit projection starts to get out of control and your real interest rates start to rise rapidly, you can get into a kind of doom loop," Summers told the outlet. "We're going to need to be watching our own fiscal projections in the United States very carefully."...

Source: Ex-Treasury Secretary Warns of Deficit 'Doom Loop,' Says Fiscal Debates Need to Be 'Back on the Table'

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