Harvard economist and former Treasury Secretary Larry Summers fears Trump’s economic proposals and penchant for trade wars could lead to a serious bout of stagflation—the toxic combination of high inflation and low growth that wreaked havoc on the U.S. economy in the 1970s.
The Federal Reserve has been hoping to prevent this scenario with its policies for years now, but that work could be undone with a few swipes of the pen, at least according to Summers.
