"Rising Interest Rates and Inflation: The Key Factors Affecting Economic Sentiment"

Former Treasury Secretary Larry Summers argues that the consumer price index may not fully capture the impact of rising interest rates on people's cost of living, leading to a disconnect between positive economic indicators and public perceptions. He suggests that including the cost of money in the CPI could better reflect people's subjective well-being and that lower borrowing costs could improve economic sentiment. Summers' views highlight the potential influence of interest rates on public attitudes and the ongoing debate about the economy's performance.