Fed rate hikes didn't crush inflation, pandemic shocks faded: Krugman

, which had the knock-on effect of lifting rental costs. Those forces plateaued more than a year ago, but have only been reflected in recent months due to lags in inflation measures, Krugman said.

The economist also underscored that the surge in workers quitting their jobs during the pandemic — dubbed"The Great Resignation" — hasKrugman summed up recombobulation as"the fading away of pandemic-era distortions." There's much more evidence of that happening versus"sketchier and more speculative" claims that the Fed is responsible for disinflation, he said.

However, the author and columnist emphasized the Fed had little choice but to hike rates and risk a recession to crush inflation before it became entrenched. The US economy seems to have shrugged off the rate increases so far, with stocks, home prices, and employment

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