Summers Fears U.S. Economy Is on 'Risky Course'

The transcript discusses the Federal Reserve's approach to tapering and rate hikes, emphasizing the impact on the labor force. It highlights concerns about financial conditions not tightening despite rising inflation. The debate includes risk aversion principles and the potential consequences of a recession versus inflation. The speaker argues that allowing inflation to accelerate could lead to significant economic problems, stressing the importance of cautious economic management by the Central Bank.

What risks does the speaker associate with allowing inflation to accelerate?

How does the speaker compare the central bank's problem to driving in traffic?