What Next | Daily News and Analysis The Unaffordable Economy
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Dec 17, 2025 
Catherine Rampell, an economics editor at The Bulwark and anchor at MS NOW, dives into the paradox of a slowing economy paired with rising prices. She discusses how consumer spending remains robust despite high costs, the complexities behind the jobs report, and the limited influence presidents have on economic outcomes. Rampell also explores the impact of tariffs on inflation, the Fed's tricky balancing act between inflation control and economic slowdown, and whether reversing certain policies could stabilize the economy.
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Presidents Hurt More Than They Help
- Presidents can't reliably control the economy, but they can hugely damage it through policy missteps.
- Catherine Rampell argues many Trump policies have been damaging even if presidents rarely 'fix' macro trends.
Inflation Backslid After Tariffs
- Overall inflation remains elevated around 3% and hasn't returned to the Fed's 2% target.
- Rampell links renewed inflation to Trump's tariffs and policy moves after an initial downward trend.
Why The Fed Wants Slight Inflation
- The Fed targets modest positive inflation (~2%) because deflation signals a collapsing economy.
- Rampell explains falling prices broadly often reflect deep demand weakness, not consumer benefit.