Ex-US Treasury Sec. Summers: Psychological effects of a trade war 'could be very serious'

Former US Treasury Secretary Summers was on the wires last minutes, speaking on the US economy and interest rates outlook in a Bloomberg TV interview.

Key Headlines:

Trade war not likely big enough to damage the economy.

But psychological effects of a trade war 'could be very serious'.

The biggest economies aren't prepared for another recession.

The top issue is keeping sound growth, full employment.

The growth helped by stimulus backs secular stagnation.

Interest rates are unlikely to return to historically normal levels before next recession.

Markets expecting less tightening than central bankers.