Fareed speaks with New York Times columnist Paul Krugman about the state of the U.S. economy. Watch the full interview on GPS this Sunday at 10 a.m. & 1 p.m. ET on CNN.
So, Paul, the quick take on the U.S. economy.
Things are getting better, finally. It's starting to look, finally, like a real recovery. But it's not a boom. And this is after many, many years of terrible performance. So, relative to the way things have been for the last few years, we're feeling pretty good. Relative to anything anyone could have imagined, the worst down side you could have imagined seven years ago, it's terrible.
So I would say it's half full, half empty. More half empty than half full, because we should be doing much better than this.
And lots of people argue the only reason we're doing as well as we are is that the Federal Reserve has maintained these extraordinarily, very low rates, other kinds of programs that pump cash into the system.
Well, certainly keeping rates low – there's no rational reason not to keep them low. Basically, business doesn't see a lot of investment opportunities, people aren’t ready to buy houses in large numbers yet. So you have to have a cheap money environment.And at least, thankfully, the Fed has been doing its job.