The boost in the stock market and the dollar on optimism about the economy since Donald Trump was elected president won’t last, former Clinton Treasury Secretary Larry Summers predicted Tuesday.
„When regimes that were in some ways similar — highly nationalist, highly interventionist with a bit of an authoritarian aspect — have come to power in Latin America, it was often a very good economic period with a strong currency before the thing fell apart,“ the economist said on CNBC’s „Squawk Box. “
Summers, a former Obama economic advisor, refused to elaborate on the metaphor. „There is no single person. But there is a tendency in a nationalist, populist economic policy… [that] everything felt terrific and then things were undone. “
In the interview, Summers wrote off the Trump rally since Election Day as a „sugar high,“ saying he’s not sure when it will end, but admitting it could „last for a while. „
