Former Treasury Secretary and Obama’s head of the National Economic Council, Larry Summers has slammed the Biden administration and the Federal Reserve in response to the surge in inflation.

“After years of advocating more expansionary fiscal and monetary policy, I altered my view this past winter, and I believe the Biden administration and the Federal Reserve need to further adjust their thing on inflation today,” Summers wrote in an op-ed in The Washington Post on Monday.

Summers was very critical of Fed Chair Jerome Powell’s recent remarks when he called inflation transitory at a speech in Jackson Hole, Wyoming in August.

Summers pointed to inflations of commodity goods excluding food and energy, that have increased 12% year over year while Powell expected prices to increase in select sectors.

Last Wednesday the Bureau of Labor Statistics, announced that inflation surged to its highest record in 30 years, with a 6.2% growth on a year-over-year basis in the Consumer Price Index.

Powell said key inflation indicators, like used cars were also expected to come down, instead used car prices grew more than 30% year over year, while new cars, another important indicator, increased 17% year over year.

Market inflation expectations for the term of the next Federal Reserve chair was around 2.5% when Powell spoke in August. Since then, expectation grew to 3.1% according to Summers, while consumer confidence has plummeted to a ten-year low due to inflation fears.

Summers was on CNN’s “Cuomo Prime Time” Thursday, saying the White House is behind the curve fighting inflation. He told Cuomo, “I think that the policymakers in Washington, unfortunately, have almost every month been behind the curve.”

“They said it was transitory, it doesn’t look so transitory. They said it was due to a few specific factors, doesn’t look to be a few specific factors. They said when September came and people went back to school, that the labor force would grow, and it didn’t happen,” Summer’s commented to Cuomo.

The Fed announced on November 3 that it would begin scaling back its monthly bond purchases by $15 billion in November from its current $120 billion monthly purchases, we reported last week.

The Fed also said in a statement, “Inflation is elevated, largely reflecting factors that are expected to be transitory. Supply and demand imbalances related to the pandemic and the reopening of the economy have contributed to a sizable price increase in some sectors.”

In a tweet on Monday, Summers argued that the growing inflation could bring former President Donald Trump back to the White House.

In his tweet Summers said, “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. While an overheating economy is a relatively good problem to have compared to a pandemic or a financial crisis, it will metastasize and threaten prosperity and public trust unless clearly acknowledged and addressed.”

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