Nobel laureate Paul Krugman sees only a 25% chance of a US recession

• Paul Krugman predicts stubborn inflation will lead to higher interest rates for longer.
• The Nobel Prize-winning economist puts the risk of a US recession at 25%.
• Krugman panned crypto and warned of painful fallout if the US debt-ceiling crisis isn't resolved.

Paul Krugman expects nagging inflation to force the Federal Reserve to keep lifting interest rates — but he sees only a slim chance of a US recession.

"Fed rate hikes are not slowing things down the way that people expected they would," the Nobel Prize-winning economist said during a recent question-and-answer session hosted by Macmillan Learning.