Nobel Laureate Paul Krugman Slams 'Truthers,' Says US Economic News Increasingly Encouraging

Nobel laureate and noted economist Paul Krugman noted U.S. economic news has been increasingly encouraging while taking a dig at truthers who believe data may not be accurate.

‘US economic news has been increasingly encouraging: falling inflation, no sign of a recession. And you know what that means: here come the truthers!' he said in his tweet.

Also Read: Best Penny Stocks

The economist highlighted a similar instance in 2010 when, he said, many so-called truthers had questioned official data. Krugman said private inflation numbers had matched the figures released by the Bureau of Labor Statistics, commonly known as the BLS.

"In the early 2010s there were inflation truthers everywhere, claiming that official data was being cooked. It helped, a bit, to point out that private inflation measures more or less matched the BLS; but I can’t think of a truther who admitted, then or later, being wrong," Krugman tweeted.

Notably, Treasury Secretary Janet Yellen recently stated that inflation has declined significantly and that she sees lower odds of a U.S. recession. "Inflation has really come down a lot — and there's more in the pipeline," Yellen estimated, partly owing to an anticipated adjustment in the housing market.

Recession Fears: Fears about a potential recession have resurfaced lately especially after market participants began considering the possibilities of extended rate hikes following the Bank of England raising rates by 50 basis points. The U.K. witnessed a higher-than-expected inflation print in May.

On the home front, Federal Reserve Chair Jerome Powell reiterated the central bank's dedication to bringing inflation down to the 2% goal, during his Wednesday testimony before the House Financial Services Committee.

Krugman highlighted the fall in inflation but acknowledged the fact that price rises are yet to revert to pre-Covid levels.

"So it may not help to point out that every private survey I know basically tells the same story as the official data: continuing expansion, slowing inflation albeit not fully back to pre-pandemic. But anyway, that’s where we are," Krugman noted.

Read Next: Jim Cramer Shares Game Plan For ‘Important Week’ Ahead As Nike, Micron Gear Up To Report Earnings