He said that for the time being it is back to a situation where risks of the economy overheating are the main imbalances for the Fed to consider.

Federal Reserve Governor Philip Jefferson who was nominated to be vice chairman signaled on may 31 that the central bank is inclined to keep interest rates unchanged at its june 13-14 meeting to give policymakers more time to assess the economic outlook.

While it is difficult to decide whether or not they will raise rates this month, Summers said the lowest-risk strategy would be for the central bank to do so.

If they don't raise rates in june, officials have to be open to the possibility that they may have to raise rates by 50 basis points in july if the economy remains overheated and if inflation numbers are solid.

He said that the employment numbers for may released friday were "solid" overall. While the unemployment rate rose from 3.4% in april to 3.7% in may, the household survey data from which the jobless figures are drawn can be confusing, especially in may when schools close, according to Summers.

The payrolls data showed that firms added 339,000 workers last month after an upwardly revised 294,000 in april.

Translated by: A.M