Economics
Fed Policy Poses Biggest Near-Term Risk to US Economy, Krugman Says
- Economist says inflation may come down faster than most think
- Krugman also sees danger of ECB being ‘way ahead of the curve’
Paul Krugman
Photographer: Christopher Goodney/Bloomberg
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Nobel laureate in economics Paul Krugman said the biggest near-term risk to the US economy is the Federal Reserve tightening policy too much as it moves against inflation.
“The biggest risk is that the Fed will overdo it and it will slam on the brakes too hard,” Krugman, a City University of New York professor, said in an interview with Bloomberg Radio. He also said he worries that the European Central Bank is already moving too quickly to tighten.