Central Banks
Krugman Says the Fed Should Pause Rate Hikes, Has Done Enough
- Says he has ‘largely given up’ on CPI to gauge what’s going on
- Another good CPI report may see Fed asking if it’s too hawkish
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Nobel laureate economist Paul Krugman sees good reasons for the Federal Reserve to consider pausing its interest-rate increases to assess the effects of its hikes on the US economy so far this year.
“My view is that the Fed has probably done enough already, and that they really, really should pause and wait to see,” Krugman said Friday on “Balance of Power” with David Westin on Bloomberg Television. “If we get another good CPI report, then there’s going to be a lot of soul-searching at the Fed, saying, ‘are we really being way too hawkish?’”