Krugman Says He’s ‘Fanatically Confused’ on Where Rates Are Going

Nobel laureate in economics Paul Krugman said it’s entirely unclear where interest-rate levels are headed over the medium term, with arguments in favor of both a return to pre-pandemic levels and a higher-for-longer outcome.

“On interest rates I am fanatically confused,” Krugman said Tuesday on Bloomberg Television’s Wall Street Week with David Westin, with regard to whether borrowing costs will remain above pre-Covid levels. “Anyone who claims to know for sure what the answer is to that, is deluding themselves.”