CNN’s Rampell: Consumers Think Economy Is Bad Because They’re ‘Wrongly Anticipating that Grocery Prices Are Going to Go Back to What They Were’

SIDNER All right New ░░░░░░░░ morning the weekly jobless ░░░░░░░░ report showing layoff activity ░░░░░░░░ but the number of ░░░░░░░░ receiving ongoing jobless benefits ░░░░░░░░ than 1 9 million ░░░░░░░░ hit a 3 year ░░░░░░░░ President Elect Trump is ░░░░░░░░ to inherit this economy ░░░░░░░░ just a few weeks ░░░░░░░░ what will his plans ░░░░░░░░ CNN economic and political ░░░░░░░░ Catherine Rampell is here ░░░░░░░░ us now Thank you ░░░░░░░░ much for being here ░░░░░░░░ Holidays to you We ░░░░░░░░ in the final stretch ░░░░░░░░ course of the Biden ░░░░░░░░ RAMPELL Happy Holidays SIDNER ░░░░░░░░ is the economy right ░░░░░░░░ Everybody of course over ░░░░░░░░ last few years have ░░░░░░░░ struggling with prices of ░░░░░░░░ while the economy seems ░░░░░░░░ be revving up RAMPELL ░░░░░░░░ it s interesting The ░░░░░░░░ consumer they re still ░░░░░░░░ dour about the U ░░░░░░░░ economy but on paper ░░░░░░░░ U S economy looks ░░░░░░░░ darn great certainly better ░░░░░░░░ most of our peer ░░░░░░░░ around the world GDP ░░░░░░░░ is strong investment is ░░░░░░░░ unemployment is not at ░░░░░░░░ all time low but ░░░░░░░░ to historic lows Inflation ░░░░░░░░ you know always the ░░░░░░░░ here but even that ░░░░░░░░ come down quite a ░░░░░░░░ and it s not ░░░░░░░░ the target but it ░░░░░░░░ far below what its ░░░░░░░░ had been and kind ░░░░░░░░ a stone s throw ░░░░░░░░ where the Federal Reserve ░░░░░░░░ like it to be ░░░░░░░░ of those things suggest ░░░░░░░░ the economy is doing ░░░░░░░░ well that you know ░░░░░░░░ seem to you know ░░░░░░░░ on wood have pulled ░░░░░░░░ potentially pulled off this ░░░░░░░░ soft landing that the ░░░░░░░░ Reserve has been trying ░░░░░░░░ achieve Now that doesn ░░░░░░░░ mean that consumers are ░░░░░░░░ things up obviously when ░░░░░░░░ are frustrated by the ░░░░░░░░ because the price increases ░░░░░░░░ we saw a couple ░░░░░░░░ years ago are still ░░░░░░░░ salient you know people ░░░░░░░░ still experiencing price shock ░░░░░░░░ time they go to ░░░░░░░░ grocery store and perhaps ░░░░░░░░ anticipating that grocery prices ░░░░░░░░ going to go back ░░░░░░░░ what they were which ░░░░░░░░ not going to happen ░░░░░░░░ what the Fed is ░░░░░░░░ for is instead that ░░░░░░░░ prices and other prices ░░░░░░░░ of plateau not that ░░░░░░░░ revert to what they ░░░░░░░░ pre pandemic but that ░░░░░░░░ plateau So the way ░░░░░░░░ wonky economist would look ░░░░░░░░ things would be to ░░░░░░░░ Things look pretty good ░░░░░░░░ if consumers are still ░░░░░░░░ by what they ve ░░░░░░░░ over the past couple ░░░░░░░░ years.’”