Global economy is in serious trouble - Larry Summers

FXStreet (Bali) - The economist who was first thought to be Ben Bernanke's replacement at the helm of the Federal Reserve, Larry Summers, urged the Fed to stand pat, not making the mistake to hikes rates anytime soon, noting that both the domestic and global economy were too vulnerable to deal with higher borrowing costs, AFR reports.

"The global economy is in serious trouble as emerging markets have basically taken a major turn down. We are flying at close to stall speed," Dr Summers said at the Center for American Progress business and economic policy conference, AFR reports. Summers was also frustrated about the lack of investment in new infrustructure in the US, saying "The federal infrastructure investment was negative last year. That is crazy."