According to a report by CNBC, BofA economist Claudio Irigoyen said in a recent note that there is a supply-driven slowdown in the labor market and that inflation remains above the central bank’s 2% target.
US saw weakest tri-monthly employment print since pandemic, with only 73k jobs created in July. Downward revisions eliminated 258k jobs. Red flag for investors.
Central banks and foreign entities have withdrawn a substantial amount of U.S. Treasuries from the New York Federal Reserve, signaling potential concerns over the stability of the U.S. dollar.
The former Treasury Secretary noted that if demand collapses due to uncertainty, a recession is more likely, but financial conditions could improve as the Fed's easing becomes probable.
It also proposed ending taxpayer handouts to electric vehicle and battery makers and canceling the Carbon Dioxide Transportation Infrastructure Finance and Innovation Act.
Summers also countered Treasury Secretary Scott Bessent’s view that bond yield at the shorter end of the curve indicates the Fed should cut interest rates.
