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. «
