(Bloomberg) -- Former U.S. Treasury Secretary Lawrence Summers warned that failing to address excess inflation could bring about the re-election of former President Donald Trump.
Summers said in a Twitter thread on Monday that the Biden administration's Federal Reserve appointments need to recognize the challenge of containing inflation, which should inform its policies generally. Reducing tariffs is the most important supply-side policy to combat inflation, said Summers, who led the Treasury Department from 1999 to 2001. He also recommends that the Fed accelerates tapering of asset purchases.
“Excessive inflation and a sense that it was not being controlled helped elect Richard Nixon and Ronald Reagan, and risks bringing Donald Trump back to power,” wrote Summers, who is also a paid contributor to Bloomberg.
Read More: Summers Signals Inflation Now ‘Entrenching' as Demand Runs Hot
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