Robert Rubin, a former US Treasury secretary, said there was a "significant risk" of persistently high US inflation and urged policy makers to be careful not to overheat.

Rubin, who served in the Clinton administration, also said that Larry Summers, a former adviser to the Obama administration, sounded the alarm that the recent price surge may not dissipate, and that it was "good to serve the public".

"our economy is very strong," Rubin said on the sidelines of the Aspen Creative Festival held online on Monday. While inflation may be temporary, he said, "there are significant long-term risks."

"as an investor and a decision maker, I would take a cautious position," Rubin said. "

Summers, who succeeded Rubin as Treasury secretary during the Clinton administration, has been a supporter of the idea that policy makers are risking runaway inflation this year. He thinks the price increase around the end of this year will be "quite close" to 5%.

While Mr Summers has said Mr Biden's stimulus package is too large, Mr Rubin said the spending programs implemented so far-particularly the $1.9 trillion epidemic relief bill-had been "necessary".

Janet Yellen, the current US Treasury Secretary, is the leader in the Biden administration that inflation will remain "temporary".