Larry Summers warns inflation outlook is ‘pretty grim,' urges Fed to move faster on rate hikes

Inflation is the worst it has been in four decades, with the price of everyday necessities like food, gasoline and cars surging in recent months.

Former Treasury Secretary Larry Summers – who predicted this would all happen nearly one year ago –  thinks the inflation problem will get worse before it starts to improve.

"I think the inflation outlook is pretty grim," Summers said Tuesday during a virtual discussion hosted by the Economic Club of New York. "And I think the Fed is a fair amount behind the curve."

The Labor Department reported earlier this month that the consumer price index rose 7.9% in February from the previous year, marking the fastest increase since January 1982, when inflation hit 8.4%. The CPI – which measures a bevy of goods ranging from gasoline to health care – rose 0.8% from January.