**[Former Treasury Secretary Summers Warns: Trump's "Political Witch Hunt" Against Cook May Undermine Market Foundations]**
BlockBeats reported on August 26 that former U.S. Treasury Secretary Larry Summers stated bluntly that the political pressure and personal attacks on Federal Reserve Governor Lisa Cook are "unprecedented," and anyone concerned about the independence of U.S. institutions should be alarmed.
Summers warned that such pressure could have a gradual corrosive effect on the market framework and might even trigger what he referred to as the risk of U.S. "Argentinization." Note: "Argentinization" refers to economic turmoil caused by populist policies and political interference, characterized by high inflation, currency devaluation, and institutional failure, similar to Argentina's economic crises from the 1950s to the 1980s.
Summers has been a sharp critic of the Trump administration's policies. He previously criticized the recently passed "Big and Beautiful Act," pointing out that the act could foster another financial crisis by increasing debt obligations. He also condemned current Treasury Secretary Besant for openly interfering with interest rate policies, though he expressed appreciation for Powell's response. (Jin10)
