Paul Krugman Warns Why This Trump ‘Obsession’ Has Economists So Alarmed

Renowned economist Paul Krugman recently criticized Donald Trump’s fixation on controlling the Federal Reserve and its monetary policy. In a scathing analysis, Krugman highlighted Trump’s irresponsible behavior and warned of the potential consequences.

Krugman, a Nobel Prize winner in Economic Sciences, pointed out that America is currently facing stagflation, a combination of high inflation, stagnant economic growth, and rising unemployment. He predicted that the Fed will cut interest rates next month as demanded by Trump, but cautioned that it won’t solve the underlying issues.

The economist emphasized that stagflation usually stems from external factors, but under Trump’s leadership, it is self-inflicted. Krugman labeled this economic situation as “Trump-enomics” and criticized the president for his lack of understanding and ignorance in slashing rates.

In a detailed analysis on his Substack newsletter, Krugman raised concerns about Trump’s attempt to end the Fed’s independence and establish ‘fiscal dominance’ over monetary policy. This approach, according to Krugman, could lead to decisions driven by political motives rather than economic principles.

Krugman’s analysis sheds light on the dangers of Trump’s interference in monetary policy and the potential consequences for the economy. To delve deeper into Krugman’s insights, readers can refer to his full analysis on Substack.

Overall, Krugman’s critique serves as a stark warning about the implications of Trump’s actions on the economy and the importance of maintaining the independence of the Federal Reserve.