Squawk Pod Episode Summary

Episode: Blackstone’s Steve Schwarzman & House Minority Leader Jeffries
Date: December 18, 2025
Host: CNBC (Becky Quick, Andrew Ross Sorkin, Mike Santoli)

Overview

This episode centers around two major themes:

1. A retrospective and future outlook with Blackstone CEO/co-founder Steve Schwarzman, touching on innovation, data centers, AI, private credit, and macroeconomic views.
2. A deep dive into the ongoing health care policy debate in Congress with House Minority Leader Hakeem Jeffries, including Affordable Care Act subsidy extensions and broader economic issues.
   The episode threads these discussions with broader market news and the intersection of politics, business, and cultural memes (“67”).

Key Segments and Insights

1. News Recap and Market Updates

• Trump’s Economic Speech:
  • President Trump touts declining prices (e.g., “The price of eggs is down 82% since March…” [02:43]) and announces $1,776 bonus checks for military personnel.
  • Preview of a new, pro-lower-interest Fed chair nomination [03:36].
• Health Care Policy Hot Seat:
  • Four centrist House Republicans join Democrats to force a vote on extending ACA subsidies [04:11].
  • Republican-led health package, minus subsidies, advances [04:54].
• Tech and AI Market Moves:
  • OpenAI in talks for a $750 billion valuation, possibly raising $100B [05:27].
  • Commentary on private vs. public market dynamics for tech unicorns.
• Instacart and AI Pricing Scrutiny:
  • FTC investigates Instacart over variable pricing linked to AI tools; discussion likens it to airline and Uber “surge” tactics, raising consumer fairness concerns [06:27–08:21].
• Corporate Deal: Trump Media Merger:
  • Trump Media to merge with fusion power company TAE Technologies, a $6B all-stock deal; speculative assessment of the rationale behind the unconventional deal [09:31–10:44].
• The “67” Meme:
  • Southwest promo features $67 fares, riffing on the “67” meme; panel notes it doesn’t really mean anything—emblematic of ephemeral internet trends [10:45–11:52].

2. Interview: House Minority Leader Hakeem Jeffries

Main Topic: Battle over ACA subsidies and healthcare reform

Key Discussion Points:

• Critique of Republican Policy:
  • "The Republican health care crisis is devastating the American people. And Donald Trump has zero credibility on the issue of health care." (Hakeem Jeffries [15:05])
  • Attacks on Medicaid cuts, SNAP cuts, and tax breaks for "billionaire donors" [15:05, 18:20].
• Fixing vs. Funding Healthcare:
  • Jeffries stresses urgent need to extend ACA tax credits to avoid dramatic premium spikes (“tens of millions of Americans...skyrocketing health insurance premiums, in some cases increasing by $1,000 or $2,000 per month” [16:42]).
  • Acknowledges systemic issues in healthcare needing comprehensive, bipartisan fix but blames GOP inflexibility and extremism for lack of progress.
• Subsidy Income Caps and Bipartisan Support:
  • Jeffries frames current support as bipartisan (“every single House Democrat and at least four House Republicans” [18:20]), but decries delay due to “one big ugly bill” focused on cuts and tax breaks.
  • Dismisses means-testing as a GOP distraction; time of the essence before subsidies expire.
• Senate Prospects:
  • Optimism that a House-passed bill could unlock a Senate deal despite filibuster challenges (“Once we send the bill...the Senate can negotiate a path forward...break the filibuster” [19:44]).
• Tariffs and Supreme Court:
  • Jeffries reiterates opposition to Trump’s expansive tariffs, sees the need for a bipartisan approach if the Supreme Court strikes them down (“...the president has violated his authority. He doesn’t have the emergency authority to implement this random, massive tariff scheme...” [22:48]).

Notable Quotes:

• “We’ve got the votes to pass a straightforward extension and send it over to the Senate. Mike Johnson needs to make sure we vote on this legislation today. The House should not recess or adjourn until this issue has been dealt with.” — Hakeem Jeffries [18:20]
• "Hard work, paying off, playing by the rules, paying off, and the American dream being brought to life is actually realized and revived because far too many people...have concluded...the American dream is out of reach.” — Hakeem Jeffries on economic gravity [21:08]

3. Interview: Steve Schwarzman — Blackstone at 40

Main Topic: Blackstone’s growth, innovation, AI/data centers, Fed outlook, and global economic perspectives

Founding and Scale:

• From $400k capital in 1985 to $1.3 trillion in assets and $187B ($240B at peak) market cap [26:39–27:02].
• Emphasis on strategy: continuous innovation, business diversification, and personnel retention via growth and new opportunities (“We never stop innovating, we never stop pushing. We always believe we have smart competitors” [01:06 & 41:57]).

Data Centers and Artificial Intelligence:

• Blackstone’s bet on data centers: QTS acquisition grew 14x in four years since 2021 ($10B deal) [30:23–31:12].
• “We saw that there would be a new world being created by artificial intelligence…It’s a bit like Thomas Edison inventing the use of electricity.” — Steve Schwarzman [30:23]
• Schwarzman dismisses the idea of an AI/data center bubble—calls Blackstone’s approach “extremely conservative...picks and shovels type of business” (long leases to “triple A, double A credits,” mostly top-tier tech firms) [31:18].
• Cautiously notes: “Now the whole field is exploding with growth...you’ll have some problems like you always do...but we will power through this and there’s going to be a profound change in the world” [32:47].

Private Credit:

• Responds to recent negative press; says most distress is from banking, not private credit markets [33:02].
• Defends private credit as conservative, “match-funded” (no sudden withdrawals), offering better yields.
• “Sometimes when I read these inflammatory statements, I go, how is that occurring?...you power through it with your results.” — Schwarzman [34:48].

Macroeconomics & The Fed:

• On CPI, Inflation, and Fed Rates:
  • Schwarzman argues real-world rent/real estate inflation numbers are much lower than CPI data. Believes actual inflation is already near Fed’s 2% goal, predicts further Fed rate cuts [35:52–36:56].
  • “...the numbers that are being used as part of CPI are still much too high in real estate inflation. And if you adjusted it, we’re actually quite close to 2%. And so I think the Fed has, in effect, done its work.” — Schwarzman [35:52].

US-China Relations:

• Warns about global implications of US-China tensions (“These two countries have about 42% of the global economy...essential that they have a functional relationship” [39:14]).
• Explains both sides have agreed to “lower the temperature,” avoid provoking incidents, and schedule multiple leader summits as symbolic steps towards stability [39:14–41:38].

US Economic Outlook:

• Optimistic about broad economic strength, especially in data center-driven sectors; some softness in lower-income segments [41:57].
• Blackstone portfolio companies (“roughly 275 companies and over 250 billion of revenue”) are growing, with revenues up 9% year-over-year [41:57].

4. Notable Quotes and Memorable Moments

• Steve Schwarzman on Innovation:
  • “We never stop innovating, we never stop pushing. We always believe that we have smart competitors.” [01:06 & 41:57]
• Schwarzman on AI:
  • “It’s a bit like Thomas Edison inventing the use of electricity in the 1880s…the use of artificial intelligence.” [30:23]
• Schwarzman on Bubble Talk:
  • “This is not bubble type work. This is extremely conservative.” [31:18]
• Jeffries on American Dream:
  • “...the American dream is out of reach as we approach our 250th birthday. That’s a shame.” [21:08]
• On “67” Meme:
  • “Well, apparently it kind of doesn’t really mean much.” — Mike Santoli [11:24]
  • “The meaninglessness is the point. In a way, I think it’s just viral...” — Andrew Ross Sorkin [11:41]

Timestamps for Notable Segments

• Trump’s Economic Address (soundbite): [02:43]
• Health Care Subsidies Congressional Debate: [04:11], [12:03] (Jeffries)
• OpenAI Valuation Discussion: [05:27]
• Instacart AI Pricing/FTC: [06:27]
• Trump Media/TAE Fusion Merger: [09:31]
• “67” Meme Explanation: [11:21]
• Jeffries on ACA Debate: [15:05–23:35]
• Schwarzman on Blackstone, AI, and Data Centers: [26:39–32:47]
• Schwarzman on Private Credit: [33:02]
• Schwarzman on Fed, Inflation, CPI: [35:52]
• Schwarzman on China-US Risk/Outlook: [39:14]
• Schwarzman on US Economy: [41:57]

Takeaways

• The ACA (Obamacare) subsidy extension is at a flashpoint in Congress, with political brinkmanship and the livelihoods of millions at stake.
• Blackstone’s Steve Schwarzman remains focused on growth via innovation, especially in AI infrastructure, and expects continued macroeconomic strength in the U.S. while remaining cautious about risks.
• Both interviews reflect high-stakes policy and market-making decisions against the backdrop of persistent political division—and the swirling influence of technology, from AI to internet memes.
• The episode captures a wide range: immediate legislative fights, long-term industry shifts, and the unpredictable touch of viral culture permeating even airline marketing.

This summary covers all substantive content from the episode, omitting advertisements and filler segments. All quotes and timestamps are directly attributed for context and reference.