Former Minister of Finance Lawrence H Sommer believes The rest of the world will suffer greatly unless the United States controls inflation and interest rates eventually rise well above current levels, much like how things unfolded in the early 1980s.

Citing his pillar In the Washington Post, Summers tweeted that even the recent hikes in interest rates and the dollar, combined with geopolitical upheavals, pose serious problems for many developing countries. “The US should lead the global effort to resolve sovereign debt problems faster and catalyze higher levels of lending IMF and the World Bank‘ he said in his tweet.

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That The former finance minister has claimed that achieving a soft landing can be much more difficult than expected. Even the markets seem to be taking this into account as the much-anticipated “Santa Claus” rally has yet to materialize. US markets closed flat on Tuesday, enduring a four-day losing streak. That SPDR S&P 500 ETF Trust SPY closed 0.14% higher during the Vanguard Total Bond Market Index Fund ETF BND 0.66% lost.

“Managing inflation and recession risk in a way that ensures a soft landing is probably not possible. But managing these risks with maximum diligence is paramount as the basis for long-term investment policies that foster the inclusive prosperity most Americans desire,” Summers tweeted.

On Falcon: Summers said hawks who suggest the Federal Reserve must keep raising interest rates until they materially exceed past inflation neglect the fact that inflation is falling — let alone the possibility that the economy will could a “Wile E. Coyote moment” in 2023where demand collapses.

“This could occur if small and medium-sized businesses encounter a wall of high-yield refinancing, if markets suddenly focus on what a recession would mean for corporate earnings, if COVID-era consumer savings are depleted, or if companies , the …