English
The US Federal Reserve risks recession of the US economy
The famous American economist Paul Krugman, who won the Nobel Prize, told the New York Times that the US Federal Bank risks stagnation in the US economy because of its tightening policy, especially if the bank tries to respond to the stagflationary scenario; Which may result in an economic recession.
In this regard, he explained that inflation has decreased significantly. It is possible that inflation will decline more quickly than the US Federal Reserve members believe when looking at the housing market and labor market data, knowing that inflation may not be fully under control yet, but it has decreased enough, without facing severe economic repercussions.
The American businessman attributed his expectations to the possibility that the US Federal Reserve's completion of its tightening path will cause major problems for the US economy, especially if the US Federal Reserve is determined to keep interest rates high for a period of time in order to reduce inflation that does not exist in this case.
