Larry Summers Says Consensus View That Inflation Will Come Way Down Is 'Outside Range Of Normal Historica

Former Treasury SecretaryLawrence H. Summersbelieves if one looks at the history of developed nations in the 1970s, it is clear that prospects of bringing down inflation are not very encouraging.

What Happened: The history of developed countries since 1970 is very discouraging about the prospects of bringing down 8 percent inflation, Summers tweeted.

Historical Experience:The former Treasury Secretary also explained how historical experience may be too optimistic a guide to current times, especially when labor markets are very tight.

"Populism has never been stronger. Labor markets are super tight. Government debt ratios are at peak levels. Globalization is certainly no longer spreading and may be receding, Summers said in his tweet.

The U.S.Federal Reservewas set to announce its monetary policy in early November, and market participants had already started factoring in a relatively less aggressive central bank.