"the market has greatly underestimated what might happen to interest rates in the near future," Summers said.
Summers believes that investors may be aware of the risk of overheating in the US economy.
Former US Treasury Secretary Lawrence Summers said investors may be aware of the risk of overheating in the US economy and the possibility that the Fed could withdraw its stimulus monetary policy more quickly.
Treasury yields rose this week to their highest level since early 2021 and Mr Summers said the market may be "realising" that inflation will not cool and that the Fed will have to do more to control price rises.
"the market has greatly underestimated what could happen to interest rates in the near future," Summers said in an interview with Bloomberg Television's "Wall Street Week" program. "We seem to have had a lot of surprisingly bad news, and it lasted longer than we thought. When you are surprised again and again, it shows that there is a pattern that you have ignored.
Mr Summers said that comparing the situation to inflation levels in the late 1960s and 1970 "would look more real" and that he was still "quite concerned" about the overheating of the US economy.