The Fed faces a big challenge in cutting interest rates with the economy roaring, Nobel laureate Paul Krugman says

• The US economy is in a better-than-Goldilocks state, economist Paul Krugman wrote for The New York Times.
• "We have an economy that is both piping hot (in terms of growth and job creation) and refreshingly cool (in terms of inflation)."
• It places the Fed in a tough position, as it has reasons to cut or keep interest rates steady.

Low inflation and blowout job growth have landed the US economy in a better-than-Goldilocks state, creating a dilemma for the Federal Reserve, Nobel economist Paul Krugman wrote in The New York Times.