The former IMF chief economist said more borrowing will spur volatility in inflation and interest rates.
The economists expect the Fed's easing will end when the benchmark rate hits a target range of 3.25% to 3.5%.
The former Treasury secretary was prominent in criticizing the arguments of “Team Transitory.”
The former Treasury secretary says it isn't clear the war on inflation has been won already.
Goldman's team estimates about a 0.5 percentage-point blow to US gross domestic product over the next year.
Summers also cautioned against thinking that the Fed will automatically start lowering rates if inflation comes down.
Fed policymakers in March 2022 began ramping up their target for the benchmark rate to a range of 5.25% to 5.5%.
Former Treasury Secretary Lawrence Summers said, “I found the Fed's action a little bit confusing.”
Economists warned that momentum slowed as the quarter progressed.
Former Treasury Secretary Lawrence Summers said the Fed is in the "late innings" of its tightening cycle.
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