Podcast Summary: Squawk on the Street

Episode: Hassett on Jobs, Tariffs, and Pres. Trump's Meeting With Oil CEOs (1/9/26)
Date: January 9, 2026
Hosts: Carl Quintanilla, Jim Cramer, David Faber
Key Guest: Kevin Hassett (Director, National Economic Council)

Episode Overview

This episode of CNBC’s Squawk on the Street dives into the latest December jobs report, upcoming Supreme Court decisions on tariffs, and President Trump’s anticipated meeting with top oil CEOs regarding Venezuelan oil. National Economic Council Director Kevin Hassett joins live to give the White House’s perspective on economic signals, policy impacts, AI-driven productivity, and the administration’s plans for the housing and manufacturing sectors.

Key Discussion Points & Insights

1. December Jobs Report: Lukewarm Results and Mixed Signals

• Headline Numbers:
  • 50,000 jobs added in December, with private hiring at 37,000—below expectations.
  • Unemployment rate fell slightly to 4.4%.
  • The 10-year Treasury yield reached its highest since Labor Day.
• Sector Analysis:
  • Health care remains the main engine of job growth, while manufacturing and retail lagged.
  • Retail lost 25,000 jobs in December, despite strong sales.
  • October and November payrolls were revised downward by a cumulative 76,000 jobs.
• Quotable Moment:
  • Jim Cramer (02:41): “I'm going to say something that you're not supposed to say in this business: inconsequential. … The revision was a bummer.”
• Structural Weakness:
  • 2025 marked the worst non-recession annual job creation since 2003, only positive due to health care and social assistance.

2. Tariffs and the Supreme Court Decision (IPA Authority)

• The Supreme Court is set to rule imminently on the legality of President Trump’s tariffs under the International Powers Act (IPA).
• Hassett expresses confidence the administration will prevail but outlines ready contingencies using other legal authorities if not.
• Quotable Moment:
  • Kevin Hassett (14:36): “There was a big call last night with all the principals to talk about if the Supreme Court were to rule against this IA tariff, what would the next step be?...our expectation is that we're going to win. And if we don't win, then we know that we've got other tools we could use.”

3. Economic Growth vs. Employment: The Productivity Puzzle

• High Productivity, Modest Job Growth:

  • Hassett notes productivity is running close to a 5% annual rate, reminiscent of the 1990s tech boom.
  • Capital Spending Boom: A surge in capital goods imports reflects onshoring and expansion, but the manufacturing job renaissance isn’t visible—yet.

• Explaining the Gap:

  • The economy shows “puzzle” dynamics: high GDP growth (Atlanta Fed’s GDPNow at 5.4% for Q4), but lackluster job creation.
  • Hassett: Strong productivity growth allows GDP gains without proportionate employment increases.

• Quotable Moment:

  • Kevin Hassett (10:57): “With productivity like that, something we haven’t seen since the 90s, you’ve got a heck of a lot of economic growth and it doesn’t necessarily have to mean a whole huge amount of job creation.”

4. AI’s Impact on Productivity and Labor Markets

• Hassett points to academic research and current data showing AI is measurably boosting productivity.

• AI is seen as a “coach” for both managers and workers, helping companies operate more efficiently.

• Cramer and Faber probe the lag between the capital investment in AI/data centers and the realization of job growth in supporting sectors (e.g., utilities, skilled trades).

• The issue of insufficient skilled labor to realize new infrastructure projects is highlighted.

• Quotable Moment:

  • Kevin Hassett (16:01): “AI has become like a really excellent coach for managers and workers—to make them do their jobs better.”

5. Labor Participation, Immigration, and Wage Trends

• Labor force participation for native-born workers is rising, partially offsetting declines from deportations and federal payroll cuts.
• Wages are up significantly, with manufacturing workers earning almost $3,000 more over the year.
• Cramer is skeptical of official statistics, noting little change in labor force participation and employment-population ratio numbers.

6. Housing Market Intervention & GSEs

• President Trump plans a housing initiative, including a large mortgage-backed securities purchase by GSEs (Fannie Mae, Freddie Mac), with a fuller plan to be unveiled at Davos.

• The goal: Boost affordability as downpayments and rates remain high, especially for millennials shut out of homeownership.

• Debate on effectiveness ensues: Is $200 billion impactful in a $13 trillion market?

• Quotable Moment:

  • Kevin Hassett (19:56): “It’s part of an overall plan… a really big comprehensive housing plan… this is just a little small part of it to help.”

7. Outlook for Manufacturing Jobs & Reshoring

• Hassett remains optimistic that factory groundbreakings will translate to jobs in the months ahead—but acknowledges the lag.
• Jim Cramer presses on the lack of immediate manufacturing job growth despite all the policy moves.

8. Defense Spending & Corporate Intervention

• Trump administration aims to increase defense spending with stipulations that funds must go toward weapons/systems, not just corporate profits.
• Historical parallels drawn to Kennedy’s 1962 pressure on steel companies.

9. Oil: Venezuela, Shale, and U.S. Refining

• Anticipation over Trump’s meeting with oil CEOs: Rebuilding Venezuela’s oil output is expected to benefit U.S. refiners, especially given Gulf Coast expertise with “sour” crude.
• Quotable Moment:
  • Kevin Hassett (25:33): “…by getting that stuff [Venezuelan oil] back to the U.S. … it’s going to be really, really great for gasoline prices in the U.S…”

10. Nuclear Power, Utilities & Data Centers

• Meta, Vistra, and Outlo are highlighted for major deals to supply zero-carbon nuclear power to power-hungry new data centers.
• Skepticism about 2030 timelines for new nuclear plants due to regulatory hurdles.
• Ongoing debate about the practicality and viability of nuclear expansion for AI/data infrastructure by the decade’s end.

11. Healthcare, Pharma M&A, and Pricing

• JP Morgan Health Care Conference preview: biotech M&A is heating up as Trump’s policy clarity on drug pricing enables new deals.

• Merck rumored to be pursuing an acquisition in oncology to offset looming patent cliffs.

• The emergence of price competition in GLP-1 weight loss drugs (WeGovy, etc.)—with Amazon selling at notable price points—could signal a price war, benefiting consumers, but posing challenges for manufacturers.

• Pressure looms for insurers next.

• Quotable Moment:

  • David Faber (40:32): “What are these companies going to do when these enormously successful medicines on which they have had incredible profit margins… come off patent? … How do you replace them? You buy an emerging biotech company that wants to get sold…”

12. Tariff Rebates and Consumer Impact

• If tariffs are struck down by the Supreme Court, potential for rebates to large corporations and, possibly, consumers.
• Uncertainty over whether companies (like Walmart/Costco) or end-users will benefit directly.
• Hassett reaffirms administration’s readiness to maintain the tariff regime one way or another.

Notable Quotes & Memorable Moments

On Jobs Data

• Jim Cramer (02:41):
  “I'm going to say something that you're not supposed to say in his business: inconsequential.”

On the Productivity Puzzle

• Kevin Hassett (10:57):
  “With productivity like that, something we haven’t seen since the 90s, you’ve got a heck of a lot of economic growth and it doesn’t necessarily have to mean a whole huge amount of job creation.”

On Tariffs and Legal Contingency

• Kevin Hassett (14:36):
  “There was a big call last night…if the Supreme Court were to rule against this IA tariff, what would the next step be?...we've got other tools that we could use to get to the same place.”

On AI

• Kevin Hassett (16:01):
  “AI has become like a really excellent coach for managers and workers—to make them do their jobs better.”

On Housing Market Policy

• Kevin Hassett (19:56):
  “It's part of an overall plan…the President's going to announce…a really big comprehensive housing plan…this is just a little small part…”

On Manufacturing & Capital Spending

• Kevin Hassett (11:20): “It’s reshoring…we’re at 35 big factories…capital spending is looking really good…the economy is ramping up at a really, really high rate.”

Key Timestamps for Important Segments

| Timestamp | Segment | |-------------|-------------------------------------------| | 00:52 | Show opens—jobs & tariffs set agenda | | 01:51-02:49 | Jobs report discussion (Cramer, Faber) | | 04:24-05:17 | Worst job creation year since 2003 | | 08:35 | Kevin Hassett joins live | | 08:42-09:56 | Hassett on jobs data & productivity | | 10:09-10:57 | Imports, capital goods, and tariffs | | 11:20-12:23 | Manufacturing, reshoring, factory builds | | 13:01-14:07 | High growth without inflation (explained) | | 14:07 | Tariff policy—SCOTUS and contigency plan | | 16:01-17:06 | AI’s direct economic impact | | 17:30-18:48 | Labor supply, immigration, wages | | 19:56-21:02 | GSEs & housing affordability | | 21:39-22:23 | Manufacturing jobs outlook | | 25:33-26:32 | Venezuela oil, U.S. refining | | 31:17-33:37 | Data centers, nuclear power, timelines | | 39:06-40:14 | Pharma M&A, oncology drugs | | 42:23-43:56 | Tariffs, BYD cars, solar panels, trade | | 45:17-45:53 | Weight loss drug pricing (WeGovy) | | 48:24-49:38 | SCOTUS tariffs impact on consumer rebates |

Tone & Style

The episode features CNBC’s signature fast-paced, bantering style. Cramer injects humor and skepticism; Faber and Quintanilla guide the conversations and probe for deeper economic insights. Hassett provides detailed, optimistic explanations—rooted in data and policy rationale, while also gamely responding to pointed and sometimes playful questions from the hosts.

Final Thoughts

Listeners are left with a nuanced picture: America’s economy is running hot on productivity, but job growth is selectively weak. The outcomes of Supreme Court tariff decisions, shifts in housing and manufacturing policy, and the next phase of AI implementation and energy infrastructure all loom large. The Biden and Trump legacies—on tariffs, employment, and regulation—are under the microscope, with significant implications for investors, workers, and consumers in early 2026.