Paul Krugman this weekend issued a condemnatory criticism of what he described as Donald Trump’s “obsession” by taking advantage of the Federal Reserve and its monetary policy.

“For my sins, I actually do it, quite frequently, I look at Trump’s social food, and this is not a guy that would allow within the three miles to make a monetary policy. This is terribly irresponsible,” said MSNBC’s renowned economist Ali Velshi.

Krugman, the 2008 winner of the Nobel Memorial Prize in Economic Sciences, said how the United States is experiencing “at least one slight case of stagning”, when high inflation is combined with stagnant economic growth and an increase in unemployment. Friday’s job report was not good news for Trump.

The “safe” Fed will reduce interest rates, as Trump demands, next month, predicted. But that will not “solve the underlying problem” or “delivers the type of wonderful economy that Trump states that we have,” he warned.

Paul Krugman this weekend issued a condemnatory criticism of what he described as Donald Trump's
Paul Krugman this weekend issued a condemnatory criticism of what he described as Donald Trump’s “obsession” by taking advantage of the Federal Reserve and its monetary policy.

Horacio Villalobos through Getty Images

Standing usually results from external pressures, Krugman said. But during Trump’s second mandate, it is “all generated by itself, self-inflicted,” Trump-inomics “has done us this,” he said.

Krugman expanded on the subject in the last issue of his replacement bulletin, arguing that by explaining Trump’s reason to reduce the rates “one should never rule out the role of ignorance.”

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“Trump can imagine that the lowest short -term interest rates will be raised in the surveys, while ignoring the high probability that such a pronounced fall in short -term interest rates will increase the expected inflation and, as a result, long -term rates will increase, they do not go down,” he wrote. “And sometimes it seems to think about the reductions of interest rates as a kind of trophy, as an award you get for allegedly winning a golf tournament.”

“But there is another reason that could explain why Trump wants to end the independence of Fed, and this reason puts very, very nervous economists,” he added. “Because Trump is likely to be trying to establish the” fiscal domain “of monetary policy, a policy regime in which Fed actions are dictated, not for an effort to achieve low inflation and full employment, but because of the desire to avoid difficult decisions about taxes and spending.”