Former U.S. Treasury Secretary: The Fed may raise

Ai Huicha, August 28: Former U.S. Treasury Secretary Larry Summers said the Federal Reserve may need to raise interest rates at least one more time, and warned that the impact of the U.S. fiscal deficit has not received enough attention. "My guess is that the Fed needs to raise rates further," Summers told host David Westin on "Wall Street Week" when talking about the Fed's interest rate outlook. He said there were not many signs of a slowdown, with some forecasts pointing to growth of more than 5% for the current quarter. Summers applauded Fed Chairman Jerome Powell's speech in Jackson Hole, Wyoming, on Friday. The latter said in his speech that the Fed is ready to continue raising interest rates as needed to ensure that inflation continues to fall back to the 2% target level. He added that Powell's comments suggested the Fed was open to the possibility that the neutral rate -- the level that neither stimulates nor constrains the economy -- could be higher than it has been in the past.