treasury secretary and served in both the clinton and obama administrations. he was warning about the aspects of inflation after biden assumed office. now he s making a new prediction as he told cnn it s quote, more likely than not we re gonna have a recession next year. joined now by larry summers who s also served as director of the white house economic council. secretary summers, thanks for joining us. we ve been talking a lot about the impact the economy has had on how voters cast their ballot. have you heard anything in policies proposed by republican to democrat that you think would help bring down inflation? i don t think anybody s gonna be able to do much.
that she will have once she wants to get a look at everything, we know that she has expressed concern over closing a tax loophole on carried interest. that is an issue that she has been concerned of in the past. we also know that back in and october she released a statement on the corporate minimum tax, saying she was supportive of that. we are still waiting to read the tea leaves. i think it s important to note as well that earlier today, senator manchin said he had not spoken with her. we know she was not involved in these negotiations. we re going to wait to see which he thinks. she s going to be a key person to watch and all of this. jessica dean, we appreciate it. where the economy is and where it s heading, and what the legislation does. who s been getting some of the credit for bringing joe manchin on board with this bill? former treasury secretary lauren summer. secretary summers, thank you for joining us. you spoke to senator manchin to answer his concerns that elements of
moves forward as expeditiously as possible. i understand you don t want to tell us the details of your conversation with joe manchin so let s have a conversation between you and me, i m john berman, i m asking you, secretary summers, i m concerned that this bill might be inflationary, that you re raising taxes on corporations, that you re spending money on climate change. how would you allay those concerns? so, john, first, this reduces budget deficits and so by reducing budget deficit it reduces the level of demand in the economy. second, this reduces prices directly by going after prescription drugs and getting lower prices and a better deal for taxpayers when they purchase prescription drugs. third, this increases supply by stimulating energy production and by subsidizing and
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driving inflation up. he wants inflation expectations to be under control. the former treasury secretary was on this program last night and he told me that this high level ov inflation could last for the next year. what do you think? i think that s not unreasonable. the fed say they expect inflation at the end of this year to be 5.2%. honestly, i think that s optimistic depending on what the fed does. i don t think former secretary summers is wrong. it could last into next year. that s possible. he says it may ease off a bit but it will last for while. americans already feeling the pinch and this rate hike will mean even higher borrowing costs on everything from mortgages to credit cards, car loans, et cetera. times are going to get even tougher for americans, most americans. well, yeah. let s keep our eye on the ball. what he is trying to do as me