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Esteemed economist Paul Krugman delves into the complexities of the current economic landscape, describing it as neither disastrously poor nor prosperously thriving, but rather situated in a gloomy midpoint. Krugman discusses how, although the economy has yet to descend into a recession, issues such as rising costs and challenging job markets create a bleak atmosphere. The conversation explores topics like political interference with the Federal Reserve, the consequences of tariffs on consumer goods, and the potential impact of inflated expectations surrounding artificial intelligence. Additionally, he offers insight into how policy decisions, including energy future conflicts and the pressure on AI demands, could lead to a more constrained economic environment. Throughout the dialogue, Krugman highlights the intricate balance required to steer the economy away from further pitfalls, stressing the importance of prudent decision-making and the dangers of impulsive fiscal policies. Subscribe to Fast Politics and listen 4x a week for interviews just like this on your favorite podcast app: https://episodes.fm/1645614328