Larry Summers, former Treasury secretary and Harvard University president emeritus, warns that he thinks the economy is far from robust growth and the market is really on a sugar hill.
“I’ve been worried for some time. We may be seeing a kind of sugar high and that sugar highs tend to be followed by much less happy periods,” he told CNBC.
“It isn’t clear that we’re going to get a sugar high beyond the market because you have seen for some time highly optimistic sentiment. The GDP figures for the first quarter, most people don’t think they’re going to be very good,” said Summers, the 71st United States Secretary of the Treasury from July 1999 until January 2001.
“There is nothing in any data suggesting that we’re moving toward that 3% to 4% growth standard,” said Summers, who was the Chief Economist at the World Bank from 1991 to 1993.