Krugman Says He's 'Fanatically Confused' on Where Rates Are Going.

Nobel laureate in economics, Paul Krugman, expressed uncertainty about the future direction of interest rates, stating that arguments can be made for both a return to pre-pandemic levels and a higher-for-longer outcome. Krugman mentioned factors such as increased immigration and the Biden administration's industrial policy as potential influences on interest rates. He also discussed the possibility of low interest rates persisting, but acknowledged that the Federal Reserve and other economists have different projections. Krugman downplayed concerns about federal debt, citing the historical record of countries borrowing in their own currency without experiencing a debt crisis. However, he acknowledged the need to address the issue of federal entitlement programs in the long term. [Extracted from the article]