Larry Summers tells investors to brace for turbulence as Fed and inflation reality comes crashing in

• Larry Summers sees turbulent times ahead for investors, who are too convinced inflation is cooling.
• The former Treasury Secretary said the Fed could tighten more than expected to hit its inflation goal.
• He laid out why the Fed could go further than the two 25-basis-point interest-rate hikes now priced in.

Larry Summers has warned investors have a bumpy ride ahead of them as reality sinks in about what the Federal Reserve still has to do to combat inflation.

Markets are too complacent that price pressures have cooled to the point where the US central bank might consider easing up on monetary tightening, the former Treasury Secretary suggested.