Ex-US Treasury Sec. Summers: Psychological effects of a trade war 'could be very serious'

Dhwani Mehta FXStreet

Former US Treasury Secretary Summers was on the wires last minutes, speaking on the US economy and interest rates outlook in a Bloomberg TV interview.

Key Headlines:

Trade war not likely big enough to damage the economy.

But psychological effects of a trade war 'could be very serious'.

The biggest economies aren't prepared for another recession.

The top issue is keeping sound growth, full employment.

The growth helped by stimulus backs secular stagnation.

Interest rates are unlikely to return to historically normal levels before next recession.

Markets expecting less tightening than central bankers.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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