Nobel Prize-winning economist Paul Krugman says fears of runaway inflation are hugely overblown

[Yo_Mama_Been_Loggin]

and dismisses the risk of stagflation

Paul Krugman rejected the idea that inflation expectations are getting out of hand, and downplayed the risk of stagflation, in a slew of tweets on Wednesday.

"5 year breakeven at 2.48. Out of control inflation expectations my ... asset," he tweeted, referring to the current level of the St. Louis Fed's 5-year breakeven inflation rate, which measures expected inflation based on Treasury note data.

The inflation indicator dropped from 3.34% in March to 2.48% on July 6, marking its lowest reading since August last year.

The Consumer Price Index (CPI) hit a 40-year high of 8.6% in May, fanning fears that employees would start demanding wage increases, and businesses would begin hiking prices in anticipation of their costs rising and competitors raising prices. Those trends could spark a dangerous combination of rapidly rising prices and slowing economic growth known as stagflation.

https://www.msn.com/en-us/money/markets/nobel-prize-winning-economist-paul-krugman-says-fears-of-runaway-inflation-are-hugely-overblown-and-dismisses-the-risk-of-stagflation/ar-AAZk7hA

[inthewind21]

1. Fear

of EVERYTHING is hugely overblown.

[PoliticAverse]

2. NYT Economist Paul Krugman Says He Got it 'Wrong' When He Repeatedly Called Inflation 'Transitory'

See: https://www.mediaite.com/news/nyt-economist-paul-krugman-says-he-got-it-wrong-when-he-repeatedly-called-inflation-transitory/

People need to stop believing pundits about something if they were wrong about that thing in the past.

[FBaggins]

3. Yep. "The Week the Inflation Panic Died" was over a year ago

It has only gotten worse since then.