Larry Summers Predicts Sticky Inflation / Car Insurance as Lagging Indicator

Larry Summers predicts that interest rates will stay higher than the market's expectations due to sticky inflation, particularly highlighted by the increase in car insurance rates. Car insurance is considered a lagging indicator because it takes time for the increased costs of car repairs and medical care to be reflected in insurance rates. These lagging effects of an overheated or overstimulated economy are expected to persist and may necessitate keeping interest rates higher for an extended period.