Former US Treasury Secretary: 50 bps rate cut in September is appropriate

Former U.S. Treasury Secretary Lawrence Summers has warned against presidential interference in monetary policymaking, or it will only end up hurting the economy over time. Summers said on Friday that “getting politicians involved is a fool's game, and the end result is higher inflation and a weaker economy.” Summers' comments came a day after Republican presidential nominee Donald Trump said he believes the president should have some 'say' in Fed policymaking. As for the Fed's policy decisions, Summers said any emergency rate cuts would be untenable in light of the facts at hand, given that market volatility and stock market dips have eased since Monday. Nonetheless, Summers said a 50 basis point rate cut at the September policy meeting could be appropriate.