The Fed will spark a 'seismic moment' if it cuts rates, and should wait for overwhelming evidence the economy is slowing, Larry Summers says

• Markets are ramping up expectations for the Fed to cut interest rates in 2024, but Larry Summers remains cautious.
• The former Treasury Secretary said Friday the jobs data was promising, but he's not confident in a no-recession outcome.
• The Fed should wait until it has "overwhelming evidence" of cooling inflation or a slowing economy before cutting rates, he said.

Even after a hot November jobs report, markets think the Federal Reserve is heading for interest rate cuts as early as March 2024. But after the data release Friday, former Treasury Secretary Larry Summers cautioned that policymakers should tread carefully before making a final decision.