Economics

Krugman Sees Possible U.S. Recession With Little Fed Wiggle Room

  • Interest-rate increases were not grounded in the data
  • Current U.S. Treasury chief is ‘no Hank Paulson,’ Krugman says
Nobel Laureate Paul Krugman discusses the Federal Reserve and risk of a U.S. recessionSource: Bloomberg)
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Nobel laureate Paul Krugman said the U.S. economy may be heading into a recession at a time when the Federal Reserve doesn’t have the firepower to properly combat a slump.

“There seems to be an accumulation of smaller problems and the underlying backdrop is that we have no good policy response,” he said in a Bloomberg Television interview in Dubai.