The Fed’s Mission Creep & QE: Krugman vs Bessent, Who’s Right?
24th September 2025
Krugman is an ivory tower economist who would not see inflation if it jumped up and spit grapefruit juice in his eye.
Krugman ignores home prices as if they don’t matter. Not only were home prices going out of sight, they accelerated after after the Fed’s QE madness extended during covid.
Home prices are not in the CPI. Nor are property taxes. Nor is homeowners insurance. So yeah, strip all of that out as if only consumer inflation matters and you get jackass policy from the Fed coupled with jackass comments from clueless economists.
Krugman never addressed any of Bessent’s key points such as ” This harmful cycle concentrated national wealth among those who already owned assets. Within the corporate sector, large firms thrived by locking in cheap debt, while smaller firms reliant on floating-rate loans were squeezed as rates rose. “
How can anyone deny that? Nor can anyone realistically deny the Fed’s alphabet soup of tactics to bail out corporations at taxpayer expense.
Does Krugman deny inept Fed policy created a housing mess of high prices and people trapped in their homes?
He cleverly does not say. Instead, he posts asinine charts of purported inflation and also inflation expectations.
Krugman is not bright enough to know the Fed’s own studies (and common sense) show inflation expectations are irrelevant.
And that about covers it.