1 year ago

Krugman Warns of Stagflation and Economic Damage Under Trump

Krugman Warns of Stagflation and Economic Damage Under Trump
Paul Krugman warns of stagflation and recession risks under Trump’s trade policies · CNBC TV 18

Economist Paul Krugman warns that Donald Trump's trade policies could hurt the U.S. economy.

He believes tariffs and uncertain policies are causing companies to pause investments, which may slow down growth and increase unemployment.

Krugman thinks the U.S. might face 'stagflation,' where prices rise while the economy slows.

He also worries that the U.S. is losing its reputation as a safe place for investments, and the dollar's value could fall.

Krugman says that these policies are undermining the country's financial credibility.

Key facts

Economist
Paul Krugman
Primary Concern
Stagflation risk
Economic Outlook (2025)
Little to no growth, higher inflation, and unemployment
Tariff Impact
Likely to increase consumer prices
Policy Issue
Uncertainty

Sources

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