Former U.S. Treasury Secretary: The Fed may need t

WASHINGTON (Reuters) - Former U.S. Treasury Secretary Larry Summers said the Federal Reserve may need to raise interest rates at least one more time, warning that the impact of the U.S. fiscal deficit has not been taken seriously enough. He said there were not many signs of an economic slowdown at the moment. "My guess is that in the next few months, we may see the Fed have to raise interest rates one more time, if not more," Summers said of the Fed's benchmark interest rate. Would like to see Fed Chair Jerome Powell do more to recognize the impact of "the country's questionable fiscal posture" on monetary policy. "A sharply widened government budget deficit means more absorption of savings" and stimulates demand, Summers said. All of this means that the neutral rate of interest has risen—both now and in the future.