Summers: Growth to resume later this year

Rising US unemployment does not mean the stimulus is not working, says Larry Summers. That may sell in the Harvard economics department, but it doesn’t sell on Main Street, Larry.

He sees growth picking up later this year and says stimulus must be maintained as long as it is needed, but no longer.

Once the economy recovers, Summers says it is essential to take steps on spending and revenue (i.e. raise taxes) , He said he is very much aware of lessons of the 1970s on waiting too long to address inflation threats.

Markets are quietly range-bound, trading like a summer Friday.