By Ken Martin Published February 11, 2019 U.S. Economy FOXBusiness Facebook Twitter Comments Print video Mounting headwinds to stocks in 2019? Kadina Group President Gary B. Smith and Diversified Private Wealth Advisors’ Dominick Tavella on the outlook for stocks. Concerns about a possible coming U.S. economic recession are being raised by economist Paul Krugman. Continue Reading Below The Nobel prize winner said the U.S. economy may be heading into a recession at a time when the Federal Reserve doesn’t have the firepower to properly combat a slump, according to Bloomberg News. MORE FROM FOXBUSINESS.COM HIGHER HOUSEHOLD PRODUCT PRICES ON THE WAY US-CHINA TRADE TALKS RESUME HERE’S HOW MUCH WEALTHY AMERICANS PAY IN TAXES Krugman doesn’t see the downturn to be as bad as 2008, but that Washington will find it hard to contain large shocks. “There seems to be an accumulation of smaller problems and the underlying backdrop is that we have no good policy response,” he said in a Bloomberg Television interview in Dubai. The Federal Reserve put a halt to its interest-rate hiking cycle this month as policymakers examined the headwinds the economy is facing. Advertisement CLICK HERE TO GET THE FOX BUSINESS APP “We’re clearly in worse shape,” he said, citing lower public debt in 2008 and “lots of room” to lower interest rates back then. “And we came into the last crisis with pretty remarkable leadership,” Krugman told Bloomberg. Krugman says while the idea of a recession isn’t definite, it is pretty likely.