Responding to Donald Trump’s latest attack on members of the Federal Reserve for not lowering interest rates to zero or below — Nobel Prize-winning economist Paul Krugman said the president’s latest actions show he has hit the ‘panic button’ because of he has no idea what he is doing.
In his New York Times column, Krugman ridiculed Trump by bluntly stating, “He’s clueless about why his policies aren’t working, or about anything else involving economic policy.”
“It’s now clear that he’s in full-blown panic over the failure of his economic policies to deliver the promised results,” Krugman began, before getting to his point and writing, “In addition to demanding that the Fed cut interest rates below zero, Trump declared that ‘we should then start to refinance our debt,’ because ‘the USA should always be paying the lowest rate.’ Observers were left scratching their heads, wondering what he was talking about.”
As the economist notes, those observers should be confused because the president has no idea how government bonds that finance the debt work.
