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Krugman Warns Trump's Policies Could Trigger Stagflation

8/25/2025

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Summary

Story summary

Economist Paul Krugman warned that President Trump's economic policies may result in stagflation, marked by low growth and high inflation.
He identified Trump's tariffs and deportation policies as major contributors to inflation.
Krugman highlighted that current AI investments are bolstering the economy, but a slowdown could lead to a recession.

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Story summary

Economist Paul Krugman warned that President Trump's economic policies may result in stagflation, marked by low growth and high inflation.
He identified Trump's tariffs and deportation policies as major contributors to inflation.
Krugman highlighted that current AI investments are bolstering the economy, but a slowdown could lead to a recession.