Former Treasury Secretary Summers warns: Trump's "political hunt" against Cook may shake the foundations of the market
ChainCatcher news, according to former U.S. Treasury Secretary Larry Summers, the political pressure and personal attacks against Federal Reserve Governor Lisa Cook are "unprecedented," and anyone concerned about the independence of U.S. institutions should be vigilant.Summers warned that this pressure will have a gradual corrosive effect on the market framework and could even trigger what he calls the risk of "Argentinization" in the U.S. Note: "Argentinization" refers to economic turmoil caused by populist policies and political interference, characterized by high inflation, currency devaluation, and institutional failure, similar to Argentina's economic crises in the 1950s to 1980s.Summers has been a sharp critic of the Trump administration's policies. He has criticized the recently passed "Inflation Reduction Act," pointing out that the act could lead to another financial crisis by increasing debt obligations. He also condemned current Treasury Secretary Yellen for publicly intervening in interest rate policy but praised Powell's response. (Jin Shi)
