Working through the Shutdown: The CPI Report 10/24/25

Summary

Squawk Pod Episode Summary – “Working Through the Shutdown: The CPI Report 10/24/25”

Date: October 24, 2025
Podcast: Squawk Pod (CNBC)
Main Hosts: Becky Quick, Joe Kernan, Andrew Ross Sorkin
Guests: Senator James Lankford (R-OK), House Minority Leader Hakeem Jeffries, Rick Santelli (CNBC), Michael Kantopoulos (Richard Bernstein Advisors), David Sieff (Nomura)

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Episode Overview

In this episode, the Squawk Box team grapples with the ongoing government shutdown—the second longest in history—and its impact on economic data, especially the long-delayed release of the September CPI (Consumer Price Index) report. The discussion is framed by the struggle in Congress over health care subsidies, the growing pain in the real economy, and political brinksmanship from both sides. In-depth interviews with Senator James Lankford and House Minority Leader Hakeem Jeffries provide conflicting perspectives on how (and whether) the government will reopen and what it means for working Americans.

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Key Discussion Points & Insights

The State of the Shutdown & Economic Uncertainty

• Shutdown at an Impasse:
  • The government shutdown is now in its 24th day, delaying most economic data and causing visible strain (air traffic slowdowns, federal worker pay disruptions).
  • Both parties blame each other for the hold-up, centering on the extension of ACA (Obamacare) subsidies.
  • Joe Kernan: “Thirteen times we've had a continuing resolution ... and Democrats this time just say they're mad at Trump.” (01:36)
• Real-World Effects:
  • Not only are millions of federal workers missing pay, but basic government functions are compromised.
  • Hakeem Jeffries: “We haven't shut the government down. Donald Trump is the president. Republicans control the House and the Senate.” (01:53, 44:18)
  • Discussion of grounded flights at Newark and LaGuardia highlights direct consumer impact (03:36–03:43).

The September CPI Report & Market Response

• Delayed Data Finally Arrives:
  • The Bureau of Labor Statistics called in furloughed workers to release the CPI report, which is essential for Social Security adjustments and Fed policy decisions.
  • Rick Santelli’s analysis:
    • Headline CPI: Up 0.3% vs. expectations of 0.31%; Core CPI (ex-food/energy): Also 0.2% vs. 0.3% expected. (17:09–18:46)
    • Year-over-year inflation: 3% (slightly less than expected, but “it's got a 3 handle”).
    • Market reaction: Stocks up, rates down, as actual numbers were a touch softer than feared.
• Fed Implications:
  • Santelli and guests broadly agree: While inflation is lower than anticipated, it’s still well above the Fed’s 2% target—unlikley to prompt radical policy change.
  • David Sieff: “... Even a little bit softer. That's great news for the Fed in terms of their ability to cut in October ... but ... inflation fears are at least a little bit, were a little bit too high.” (19:28)
  • “The only honest metric we're getting about the US Economy now ... is the stock market.” – Rick Santelli (18:58)

Congressional Stalemate: Health Care Subsidies & Partisan Divide

• Senator Lankford’s Take:
  • Refers to previous continuing resolutions and blames Democrats for refusing to pass stopgap bills, framing shutdown as political grandstanding against Trump.
  • Lankford: “Thirteen times we've had a continuing resolution ... Democrats this time just say they're mad at Trump and so they're not going to do it at this point.” (22:47)
  • Argues that ACA subsidies are structurally flawed—citing a 200% rise in ACA plan premiums in Oklahoma versus a 29% rise in commercial plans over six years (31:38).
  • Proposes reforms: Modest premiums for ACA customers (“even if it was a $20 premium...”, 30:11), anti-fraud measures, and capping subsidies for high-income participants.
  • Advocates for an automatic “shutdown disarmament” bill: “If we get to the end of a fiscal moment ... we have an automatic continuing resolution that kicks in ... But members of Congress can't travel ... and you can't do any other bill other than appropriations.” (25:42)
• House Minority Leader Jeffries’ View:
  • Jeffries lays blame at Republicans’ feet, tying the impasse to their refusal to extend ACA subsidies.
  • Jeffries: “We extended the Affordable Care act tax credits in 2022 for three years. The program is working. It's providing health care to tens of millions of people in an affordable way, and it should be continued.” (41:49)
  • Points out the original ACA subsidy phase-out was set when Democrats held majorities (40:01), rebutting the accusation that this is somehow a Republican-only problem.
  • On reform proposals: Jeffries is open to “anything that emerges from the Senate in good faith in a bipartisan way that both reopens the government while at the same time addresses this health care crisis.” (41:49)
  • Stresses immediate need: “... tens of millions of Americans are receiving notices as we speak indicating that their health care premiums are about to skyrocket in ways that will bankrupt them or deprive them of the ability to go see a doctor...” (49:47)

Target Layoffs & Corporate Reaction

• Target Cuts 8% of Corporate Workforce:
  • Target announces 1,800 job cuts from HQ—a sign of stress at large US retailers, even as the consumer economy appears “strong on paper.”
  • Incoming CEO Michael Fidelke is seeking to cut middle management and quickly enact turnaround strategies.
  • “[It's] impacting leader roles at about three times the rate of individual contributors. … probably a necessary step that they are taking at this point.” – Becky Quick (11:59)
  • “... 1800 middle managers. How can you need middle managers? But 1800.” – Andrew Ross Sorkin (13:42)
• Pop Culture Tie-Ins:
  • Target to invest in exclusive releases (Taylor Swift’s new album, Netflix partnerships, etc.) as part of an urgent brand revitalization.
  • Underlying question: Are these moves enough to satisfy Wall Street?

Trade Tensions: US-Canada Dispute

• Trump Halts Trade Talks with Canada:
  • The US halts trade talks after Ontario releases a Reagan-themed ad criticizing tariffs, which Trump claims distorts Reagan’s true stance.
  • “[Reagan said] High tariffs inevitably lead to retaliation ... and the triggering of fierce trade wars...” (from Reagan audio, 07:51)
  • Discussion about when, if ever, tariffs are appropriate; panel debates whether Reagan’s caveats support Trump’s actions (08:24–09:35).

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Notable Quotes & Memorable Moments

Political & Economic Soundbites

• “We're jonesing for some actual government data and we're going to get it today.”
  – Andrew Ross Sorkin (01:13)
• “Monday comes quick, but so does Friday ... The only way we solve this, this Friday problem ... is a four day work week.”
  – Andrew Ross Sorkin (02:41–02:58)
• “My epiphany is ... the only honest metric we're getting about the US Economy now ... is the stock market.”
  – Rick Santelli (18:58)
• “Is it less than the Fed's target of 2%? No. Which in my opinion that fact will rise above all the issues of the day at some point.”
  – Rick Santelli on CPI (17:32)
• “I have a bill ... that would end government shutdowns forever ... put the pressure where the pressure should be ... and don't have federal workers ... wondering if members of the military are getting paid. That's ridiculous.”
  – Sen. James Lankford (25:39–26:24)
• “This is not a setup beyond what we could do. We extended the Affordable Care act tax credits in 2022 for three years. The program is working ... and it should be continued.”
  – Hakeem Jeffries (40:01)
• “We've made clear in the House that we will consider anything that emerges from the Senate in good faith in a bipartisan way that both reopens the government while at the same time addresses this health care crisis ...”
  – Hakeem Jeffries (41:49)
• “November 1st open enrollment begins. The notices are going out ... this is not an artificially made up thing.”
  – Hakeem Jeffries (49:47)

Humor & Pop Culture

• “My idea is to shut down Squawk Box until our demands are met.”
  – Andrew Ross Sorkin (02:08; recurring as a joke about striking for a four-day workweek)
• “I still get checks from them ... Even you couldn't save that movie.”
  – Becky Quick & Andrew Ross Sorkin on Wall Street II (12:50–12:55)
• “WTF or whatever the hell it is ... WTO.”
  – Sorkin and Quick on trade organizations (35:04–35:05)

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Timestamps for Key Segments

| Timestamp | Segment / Topic | |-------------------|----------------------------------------------------------------------------------------| | 01:13 | Data drought during shutdown—CPI anticipation | | 03:36–03:53 | Impact of shutdown: air traveler disruptions, federal employees unpaid | | 06:26–09:35 | Trump-Canada trade spat, Reagan ad controversy, tariffs debate | | 11:59–13:40 | Target layoffs, CEO moves, management bloat | | 16:26–18:46 | Rick Santelli: CPI analysis, market reaction | | 22:47–26:24 | Sen. Lankford: Shutdown blame, ACA subsidy critique, reform proposal | | 31:38–32:04 | ACA premium increases (Oklahoma), Lankford on reform | | 38:41–41:49 | Hakeem Jeffries: Dems’ shutdown approach, ACA subsidies, response to GOP | | 49:47 | Jeffries on direct impact: rising health premiums, urgent action needed |

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Tone & Style

Hosts maintain the signature Squawk Box blend of informed debate, skepticism, and humor—with a focus on putting elected officials on the spot. While the economic data is handled with seriousness, political exchanges throughout are brisk, pointed, and occasionally sardonic.

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For Listeners Who Missed the Episode

The episode delivers a real-time portrait of a government paralyzed by partisanship, showing how legislative gridlock is spilling into daily life—from missed paychecks to flight delays—while Wall Street and policymakers watch the CPI for signs of economic cooling. The Target layoffs and the Canada tariff flap offer broader context on corporate and trade anxieties. Candid exchanges with Senator Lankford and Leader Jeffries crystallize the impasse over health care subsidies, illustrating just how far apart the two parties remain on solutions and priorities.

This episode is essential listening for anyone seeking to understand the intersection of shutdown politics, economic policy, and their direct impact on Americans in late 2025.

Transcript

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[Joe Kernan]

Bring in show music, please.

[Katie Kramer]

Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod numbers, real numbers about the state of the economy.

[Andrew Ross Sorkin]

We're jonesing for some actual government data and we're going to get it today.

[Katie Kramer]

The lone data point released in a government shutdown tells us price inflation in September was not only bad news for consumers. Our panel gets into it.

[Andrew Ross Sorkin]

The fundamentals, Joe, are pretty strong right now. There's no doubt about it.

[Katie Kramer]

Speaking of shutdown, Republican Senator James Lankford on the state of the stalemate in Washington.

[Joe Kernan]

Thirteen times we've had a continuing resolution where we've got to the same moment. In the last 13 times we voted to say, okay, let's keep negotiating, let's keep it open. On it. And Democrats this time just say they're mad at Trump.

[Katie Kramer]

And Democrats leader in the House Hakeem Jeffries said says there is blame to go around.

[Hakeem Jeffries]

Yeah, we haven't shut the government down. Donald Trump is the president. Republicans control the House and the Senate.

[Katie Kramer]

Plus layoffs at Target, another halt to trade negotiations with Canada and can we strike for a four day workweek?

[Andrew Ross Sorkin]

My idea is to shut down Squawk Box until our demands are met.

[Katie Kramer]

It's Friday, October 24th. This super sized squawk pod begins right now.

[Hakeem Jeffries]

Stand Becky by in three, two, one.

[Becky Quick]

Good morning, everybody. Welcome to Squawk Box right here on cnbc. We're live from the NASDAQ marketsite in Times Square. I'm Becky Quick along with Joe Kernan. Andrew is out today. Let's take a look at where things stand on this Friday morning. I remember what day it is on Friday.

[Andrew Ross Sorkin]

We just said this a week ago. We just showed. That's the good news. Monday comes quick, but so does Friday.

[Becky Quick]

So does Friday. Right.

[Andrew Ross Sorkin]

The only way we solve this, this Friday problem with Monday and everything is, is a four day work week.

[Becky Quick]

All those in favor? Aye.

[Andrew Ross Sorkin]

I think that's the only way that it's ever going to be a true weekend. And. And I'm. My idea is to shut down Squawk Box until our demands are. Are met.

[Becky Quick]

I was going to say, hell, no, we won't go, but we'd like to go.

[Andrew Ross Sorkin]

Right. Do you think that'll work? We can use that as leverage.

[Becky Quick]

Probably not. Do we get paid?

[Andrew Ross Sorkin]

Well, that's the question. We can maybe put one of those bills through where we continue to get paid during the shutdown.

[Becky Quick]

Like the congressman.

[Andrew Ross Sorkin]

They didn't do it.

[Becky Quick]

No, the congressman.

[Andrew Ross Sorkin]

Oh, those guys do. But not the federal workers.

[Becky Quick]

Not the federal workers.

[Andrew Ross Sorkin]

Did you see laguardia in Newark last night?

[Joe Kernan]

No.

[Becky Quick]

What happened?

[Andrew Ross Sorkin]

Planes grounded? No air traffic control.

[Becky Quick]

Are you shocked?

[Andrew Ross Sorkin]

Would you fly? I wouldn't fly now in the next week. Not out of safety concerns, because you are going to be sitting somewhere for forever. You might as well walk wherever it is you're.

[Becky Quick]

Well, maybe that's the thing that finally brings pressure. We do have Hakeem Jeffries on today. Hello. Do you blame these workers for not showing up if you're not paying them?

[Hakeem Jeffries]

No.

[Becky Quick]

Get your act together. Let's open the government.

[Andrew Ross Sorkin]

We won't get anywhere with Leader Jeffries. I know that. You know, when I see that he's going to be on. I try to think of a million different ways of approaching it without being a complete. You know, without really making people angry on either side. But what is it that would do it right now? What is it?

[Becky Quick]

At what point? At what point do they realize it's a pox on all their assets?

[Andrew Ross Sorkin]

Well, what are Republicans? If you were Republican, what would you agree to do?

[Becky Quick]

You don't care if you were somebody who is trying to get home to your family member who's sick or something?

[Hakeem Jeffries]

Don't care.

[Andrew Ross Sorkin]

Just if I ask Hakeem Jeffries what he wants or what Democrats want, they.

[Becky Quick]

Want you to continue funding health care.

[Andrew Ross Sorkin]

I don't think that's. I don't think that's all it is. I mean, that's 345 billion for 10 years. You could extend the whole thing. What they wanted cost 1.5 trillion. Do they really want that? Is it truly wishless? I like, you know, once again, what's her name? Strassel. Great piece again today. Yeah, great piece. Again, the ugliness after the shutdown because this, you know, I was going to play this for Hakeem or for Leader Jeffries, but I'm not going to. Shutdowns are a byproduct of Washington dysfunction, but Democrats intransigence on this one, they're indifference to convention or consequence. And their drive to impose their demands on a country they lost in the last election is unfortunate. This dysfunction can always get worse. And it is. This is as bad as, I think.

[Becky Quick]

Second longest so far, the shutdown to date. Again, not entirely sure what gets you to the path because it doesn't sound like they're talking in any sort of constructive manner at this point.

[Andrew Ross Sorkin]

Susan Collins and the other people on appropriations are. They're ready to go with a bunch of appropriations bills to vote on. And there's even a defense bill that didn't get through that was voted on almost like a rubber stamp. It got out of Committee 27 to 3 or something that didn't pass. So nothing. And there's we're going to hit November 1st, which is when the subsidies where the enrollment ends anyway. So we're.

[Becky Quick]

Well, I think it opens.

[Hakeem Jeffries]

It opens.

[Andrew Ross Sorkin]

Yeah, we're going to hit November 1st. So I know there's no time to do any of the appropriations now. And then there's, you know, they're thinking about doing a year.

[Becky Quick]

Oh, in the meantime, President Trump posting on X late last night that he is terminating all trade negotiations with Canada. He said the provincial government of Ontario created an ad featuring former President Ronald Reagan speaking negatively about tariffs. He accused Canada of trying to influence a pending U.S. supreme Court case that could doom many of his tariffs, including ones on Canada. Here is that ad.

[Joe Kernan]

When someone says let's impose tariffs on foreign imports, it looks like they're doing the patriotic thing by protecting American products and jobs. And sometimes for a short while it works, but only for a short time. But over the long run, such trade barriers hurt every American worker and consumer. High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Then the worst happens. Markets shrink and collapse, businesses and industries shut down, and millions of people lose their jobs. Throughout the world, there's a growing realization that the way to prosperity for all nations is rejecting protectionist legislation and promoting fair and free competition. America's jobs and growth are at stake.

[Becky Quick]

The Ronald Reagan Presidential foundation and Institute said that that ad misrepresents a presidential radio address that Reagan delivered in April of 1987 and that his remarks were edited without permission. The foundation did not say what was misleading in the unedited address, though Reagan says in certain select cases they have taken steps to stop unfair practices against American products, but still maintained our basic long term commitment to free trade and economic growth. He also says it's terribly important not to restrict a president's options in such trade dealings with foreign governments.

[Joe Kernan]

Wow.

[Andrew Ross Sorkin]

Good job, cnbc. You won't see that on any other network with the unedited versions. Yeah, they'll just play that. And while I was watching it, God forbid that you would say it's different this time. And that's not what I'm saying. But Reagan pointed out that the president Reagan the worst case scenario is a trade war which hurts everyone. And if that's not your intention and if that's not the end result and if it's getting people to the negotiating table to try to correct some long standing trade inequities, that people do take advantage of the biggest and strongest economy on earth, we're throwing the party for the entire world most of the time because of what we do for global growth and everything else. You're going to get taken advantage of. And I don't know what Reagan would say if we could channel him maybe and ask him. But I think those. What you said at the end, some of the. Not a disclaimer, but sort of footnotes.

[Becky Quick]

But it's like looking at the entire argument and looking at the.

[Andrew Ross Sorkin]

Exactly, exactly. And I'm sure that's what President Trump would say.

[Becky Quick]

Retailer Target says that it is cutting 1800 corporate jobs in its first major round of layoffs in a decade. The company says that about 1,000 employees will be laid off and another 800 positions will no longer be filled. Combined, that is an 8% cut to the company's corporate workforce. Target plans to notify infected employees on Tuesday. Let's walk through this a little bit. It is a big deal. These are people who are at headquarters only. And according to a letter that the incoming CEO, Michael Fidelke, who is the current state coo, sent out to headquarter team members yesterday, they're asking their US Headquarter members to work from home next week. I guess that's when the decisions will be going out on this. He said. It's going to be impacting, I believe from what I hear, it's going to be impacting leader roles at about three times the rate of individual contributors. It is probably a necessary step that they are taking at this point. If you look back at the stock right now, you can see the one month up by 7.3%. But if you look back for the year to date, three months, it's down 10%. Year to date, it's down significantly more, almost 30%. If you look back over five years, the stock is down even more over that time period. So over five years. This company has struggled since it first took off after the pandemic, down 40% over the five years. When the announcement was made back in August that Fidelke would be taking over, the stock dropped once again because Wall street was looking for an outsider to come in and really shake things up. These are some significant moves he is taking before he even becomes CEO. It's not due to become the CEO until February of next year, but he says, you know, that these are things that they have to be doing at this point. It does come with some other changes that they're trying to make pretty quickly because again, there's a lot of pressure on him to make changes very quickly to hopefully soothe with the concerns on Wall Street. Whether it's going to be enough is a big question. But they're doing other things too. They're going to be returning to New York Fashion Week. They've got the exclusive midnight release of Taylor Swift's new album, the Life of a Showgirl. They have partnerships with Netflix for the final season of Stranger Things. A lot of different things. Investing more than $4 billion in the shopping experience this year, whatever that means. But these are all things that they are trying to do quickly because the street has had such a. A bad reaction to the idea that this was not going to be someone from the outside who would make significant changes.

[Andrew Ross Sorkin]

The fifth season of Strange Things are so Strange Now, I bet. But I read that it's in the ten point. My immediate thought was 18. I mean, it's a big company. 1800 corporate types like 18%. You know my feeling about management well.

[Becky Quick]

And I thought you would appreciate the idea that it was three times at the leader position.

[Andrew Ross Sorkin]

No. Given what's happened to the company, I would have got those 18 even if I was going to keep those positions. You got to go. The 1800 we're talking about that orchestrated what happened in the stock. We'll hire a new 1800. But then you think, how could you possibly need. I don't know. It's a big company. But it immediately reminded me. And someone mentioned a movie no one saw that. You were in Wall street too, but in Wall street one.

[Becky Quick]

Yes, you're very. You were trashing it yesterday. I was like, yeah, I was in that movie. I still get checks from them.

[Andrew Ross Sorkin]

Even you couldn't save that movie. But in the first one during the greed is good speech and Michael Douglas, you know, does stuff now for tunnels, the towers. I love him. I love his character in an evil sort of way. Gordon Gekko. It was telled our paper and he was walking around, he said there are more than 300 vice presidents sitting here in this room as a shareholder meeting, all making more than X amount of dollars a year. None of them have any idea what they're actually doing. All they're doing is using Teldar paper to send each other memos. And that's all I can figure out what they're doing. And it reminded me of 18. So they're superfluous. 1800 middle managers. How can you need middle managers? But 1800.

[Becky Quick]

Yes. Well, look, I mean it's a big company.

[Andrew Ross Sorkin]

You're just selling stuff right off of, you know, toilet paper.

[Becky Quick]

You can look at a lot of companies, hair dryer, a lot of bloat. And that's. Look, that's been what the Trump administration is saying about the government. There are probably a lot of corporations.

[Andrew Ross Sorkin]

Yeah. And this is in the private sector. So can.

[Becky Quick]

All right, anyway, it's going to be interesting to see how this plays out. Interesting to see how the street takes to it because again, he's the chief operating officer right now. He's not the CEO until February. But these changes are coming from him. And we will see how the company reacts, how the performance reacts, how the street reacts to all of it.

[Hakeem Jeffries]

Teas will be next.

[Katie Kramer]

Up next, it's here the long awaited and delayed monthly inflation reading. The Consumer Price Index. Furloughed government workers called back to the office to prepare this key report. Wall street is watching those numbers. And Oklahoma Republican Senator James Lankford joins us on set with his diagnosis of the government shutdown standoff.

[Andrew Ross Sorkin]

What do they want?

[Joe Kernan]

It depends on who you ask. There are some that are in the Democrat Senate that would say they're never going to vote for a single extension for anything because they need to show their resistance to trump.

[Andrew Ross Sorkin]

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[Katie Kramer]

Welcome back to Squawk Pod from CNBC. I'm producer Katie Kramer. The government shutdown, now the second longest in history, has delayed most economic data points. But the September Consumer Price Index was released today after the the Bureau of Labor Statistics, part of the Labor Department, called workers back in to calculate the inflation data. Now that data is needed to determine the annual cost of living adjustment for Social Security beneficiaries. And it also comes ahead of next week's meeting of the Federal Reserve's rate setting committee. The Fed is data driven. What's it to do when there is no data? CNBC's Rick Santelli broke out the numbers on our TV broadcast this morning with Joe Kernan and Becky Quick. Here it is.

[Rick Santelli]

Here's our late but coming out September read on the Consumer Price index headline number up 3101 10. Cooler than both rearview mirror and what we were expecting. And if we look at the stripping out of food and energy known as core, it comes in also a bit less than expected. Up 2.

[Andrew Ross Sorkin]

10.

[Rick Santelli]

We're expecting up 3/10. Our last look was up 3.

[Hakeem Jeffries]

10.

[Rick Santelli]

Here's the Moneyball numbers year over year 3%. And even though it's less than the 3.1 we're expecting, it's hotter than 2.9. And after all it's got a 3 handle. And if we look at CPI year over year ex food and energy, it also comes in at 3%. We're also expecting 3.1, but last look was 3.1, so it cooled a bit. So we're seeing interest rates move down and stocks move up. You may be asking why? An easy answer, because it's less than expectations. Is it less than the Fed's target of 2%? No. Which in my opinion that fact will rise above all the issues of the day at some point. But yes, we do see rates moving a bit lower. Ultimately, this is a very important number because the market, without any data points, has been pretty much viewed on the notion that the labor market is slowing, and that really is a good thing if you're looking for the Fed cycle to continue its rate cuts. Now, how does this figure in? I can't speak for Fed officials, but if you really have an agnostic view and you look at these numbers, the last thing you think about is we're closing in on the Fed's target. Joe and the gang.

[Andrew Ross Sorkin]

Back to you in a nutshell. That's exactly what people said leading up to this, Rick. It's going to be higher inflation, but it's not going to be high enough to cause the Fed to change any of its plans.

[Rick Santelli]

My theory is, my epiphany is, is that the only honest metric we're getting about the US Economy now, in my opinion, is the stock market, because I think all the professionals, I think they look at many things through the prism that's affected politically. And I think a lot of the weakness that we see showing up comes from surveys. And now I have a huge mistrust of surveys.

[Andrew Ross Sorkin]

All right, thank you. Rick Santelli joining us now. Oh, you're staying with us, Rick. Good. Michael Kantopoulos.

[Rick Santelli]

Not going anywhere, Joe.

[Andrew Ross Sorkin]

All right, good. Michael Kantopoulos, Richard Bernstein Advisors Deputy Chief Investment Officer, David Sieff Nomura, Chief Economist for Developed Markets. All right, General, who wants to, who wants to start? So this is probably, David, this is probably about what you were expecting, is it not? Yeah, it's even a little bit softer. And so that's great news for the Fed in terms of their ability to cut in October, which didn't really seem that much in doubt, but also to follow the dot plot in December. You've had some people on the Fed who are on the more hawkish side of things, who've since September pushed back on what, what seemed like a dovish shift. And of course, we haven't gotten very much data since then, of course. But what little data we do have now from, from just now does appear to make it seem like inflation fears are at least a little bit, were a little bit too high given, given what we're getting in so far. So the market has been strong. Michael and Rick makes that point. Any AI tailwind that makes it less fundamentally based than we think? No, I think, listen, fundamentals, Joe, are pretty strong right now. There's no doubt about it. You know, the economy is not weak per se. I mean, you've had pockets of weakening. I really do believe we're in a K shaped economy where the lower end is maybe not quite as strong as the higher end.

[Joe Kernan]

Today's number for me is actually about broadening more than it is about AI.

[Andrew Ross Sorkin]

Although probably the first step forward is going to be more about AI and some of the momentum plays just because they are juiced by liquidity and we do have easy financial conditions and this will sort of portend more of that. But, you know, I think you can make an argument that you get some.

[Joe Kernan]

Broadening here and it's not just about AI.

[Andrew Ross Sorkin]

Both gentlemen. Thanks, Rick. So you think eventually we're not getting a 2 and the Fed's going to notice that. So you think down the road this is not all roses? Better roses.

[Rick Santelli]

Yeah. Listen, I think that no matter what the Fed does, and I don't think that the Fed's necessarily going to ease because of Trump's picks, the market still can push back. The market yields are still higher than they were on that first September 24th cut. The ten year was in the three sixties. The market has a life of its own, despite the Fed.

[Andrew Ross Sorkin]

All right, thank you all from Becky's home state. Langford's here. Government. Government shutdown is now in its 24th day. She's got like eight homes and so do you. And the shutdown will.

[Becky Quick]

Massachusetts, California, California, Colorado, Cincinnati.

[Andrew Ross Sorkin]

The shutdown is going to extend into next week. The Senate has left town for the weekend without a deal. Why even stay after yesterday? Can't even pay the federal employees. Joining us now for the latest, Senator James Lankford of Oklahoma. He's vice chair of the Senate Republican Conference. I watched the explanation on that and it's just tortured. It's Trump is a bad person is all. That was the answer to why we can't pay the federal employees.

[Becky Quick]

I think specifically they said they didn't trust Donald Trump to decide, well, pay.

[Andrew Ross Sorkin]

What if you pay? Okay, so what if you pay half of them? Is that a horrible.

[Joe Kernan]

Pay as many as we can. We should be open.

[Andrew Ross Sorkin]

Fetterman. Fetterman said straight up, how can you vote against paying?

[Becky Quick]

Who we are hiring to work.

[Andrew Ross Sorkin]

Well, they did.

[Joe Kernan]

They did. They did. And that's been the challenge we've had along. We said over and over again, 13 times we've had a continuing resolution where we've got to the same moment in the last 13 times we voted to say, okay, let's keep negotiating, let's keep it open on it. And Democrats this time just say they're mad at Trump and so they're not going to do it at this point. And the crazy thing is they keep saying, well, this is about health care piece. Well, in 2013, as folks recall, Republicans were mad about Obamacare. We were pretty clear about it. And we had a big government shutdown. It was shorter than this one. And Democrats at that time said, we will not negotiate on health care while the government is closed. Well, now, now it's literally the opposite on it that we're saying we're not going to negotiate on health care. Health care is incredibly complicated. You can't do it while people are not getting snap benefits, People are not getting paid. Air traffic controllers aren't getting paid. You can't sit there and say, we'll do this little tweak and that's going to be enough. It's not enough. So let's actually have a real conversation about all these issues, but not while there's a shutdown.

[Andrew Ross Sorkin]

Couldn't we have been involved now in negotiations if we had done the CR3? How long was it? Three weeks.

[Joe Kernan]

More than three weeks.

[Andrew Ross Sorkin]

If we had done three weeks ago, we'd be well into the appropriations negotiations for doing something by November. Now it's almost too late to do anything. It is.

[Joe Kernan]

So we brought three appropriation bills that we had already passed in the Senate and said, let's conference these with the House. And Democrats said, no, we're not going to do anything at all. We brought the defense appropriation bill. And they said, nope, we're not going to discuss defense on this. We brought up, let's put pay federal workers, at least let's do that. And they're like, nope, we're not going to do it.

[Andrew Ross Sorkin]

And they've done the defense bill every.

[Joe Kernan]

Other time we've done the defense bill.

[Andrew Ross Sorkin]

It was 273 to get out of committee.

[Joe Kernan]

The three bills that we had already passed that we were sitting to conference with the House, all passed unanimously. I mean, these are not controversial. This is just them digging in and saying, literally, we're not going to do anything to pay anybody. We're not going to do anything.

[Becky Quick]

Where's the off ramp?

[Andrew Ross Sorkin]

How?

[Becky Quick]

Because at this point, you're talking about, you know, air traffic delays, planes that were grounded, not only here in Newark, LaGuardia, I think somewhere else, too. It was Houston, Reagan National. I mean, this is the pain point where people who are not following along on a daily basis are just going to get mad about this. How does this break? How does this end?

[Joe Kernan]

So some folks literally are saying, I'm not affected. I don't feel it at all. Anyone who's flying right now, that's in the back of their head on it right now. Anyone who's a federal employee, I would tell you a federal family. I know both the husband and the wife both work for a federal agency. She is pregnant with their first child. And literally they don't have. Neither of them have a paycheck right now. That story is repeated all over the country. This is. This has a very real effect for a lot of families on it. And I know the Democratic whip in the House said that, you know, families are going to have to suffer, so we have leverage. But I just don't agree. They had nothing to do with this. I have a bill that I put out last year. We literally had 57 votes for it that would end government shutdowns forever. Just take it completely off the table.

[Becky Quick]

So all that's the right way to do it. So nobody has this.

[Joe Kernan]

Correct. It's a total disarmament on it. Say we can't do it. And it's very simple. It just says if we get to the end of a fiscal moment like this, and we'll have another one like it, we have an automatic continuing resolution that kicks in. But members of Congress can't travel. We're in session seven days a week. There's a vote scheduled every single day. And you can't do any other bill other than appropriations. It literally just locks you in the box and says, congress, finish your job. But the American people are held harmless with it. So put the pressure where the pressure should be on it. And don't have federal workers and everybody a flying public and everybody wondering if members of the military are getting paid. That's ridiculous. And it improves our image on the world stage. It shows we can actually get stuff done.

[Andrew Ross Sorkin]

If you believe, and I do, but if you believe what Senator Schumer's true motivations are, and he's got issues. He does. He has issues with the left flank and being challenged. So he's got political issues. But can you tell me exactly what Democrats actually do want? Because Leader Jeffries is going to be on And I'd like to ask him, tell me exactly what you do want. Do they want the 1.5 trillion with all the bell.

[Joe Kernan]

That's what they brought.

[Andrew Ross Sorkin]

That's what they brought. Do they really want that? Do they want a backroom deal, which that's what people say between Senator Schumer and the president and Senator Thune and Mike Johnson? Do they want an extension of all 10 years of the Obamacare subsidy for 345 billion? Do they want one year for whatever it is, 40 billion. What do they want? What do they want?

[Joe Kernan]

All of those they've asked for. All those asked for.

[Andrew Ross Sorkin]

But what do they really want for us to do?

[Joe Kernan]

It depends on who you ask. There are some that are in the Democrat Senate that would say they're never going to vote for a single extension for anything because they need to show their resistance to Trump. This is all about showing their bona fides being on the phone.

[Andrew Ross Sorkin]

Well, you watch those. I mean, I watched some of the no Kings thing. I mean, they, you know, Fox makes a living of going and asking the people, what is it? Why are you here? And not one person really could say anything except Orange man bad. That's really all any of them could say. But. So it's just a show of resistance. But there's nothing on the other side of them.

[Becky Quick]

Different opinions. I mean, they have, well, this east wings.

[Andrew Ross Sorkin]

This demolished east wing is not helping.

[Joe Kernan]

No, I get it. I get it. But the funny thing about this is they're going to say, well, we have a strong difference of opinion on it, so we're shutting the government down. Well, we had a very strong difference of opinion with President Biden on immigration policy. We never shut the government down on President Biden. Thirteen times we had a moment like this in his presidency. We didn't do this to all those folks that were unaffected. So the key thing that we're trying to be able to drive here is let's keep the government open while we're negotiating. It's a big shock. Republicans and Democrats don't agree on things, but why are we punishing people that shouldn't be punished for it in the meantime on it and the health care piece on it. They've been all over the place on what they're looking for, and they're finally coming back out and saying, okay, let's just do one year. Your latest piece, just do one year. And our basic question is, okay, well, let's talk about this in my state, the Affordable Care act and all the folks that are on that Health care program. Over the six year period, the premiums went up 200%. At the same time, commercial insurance went up 29%. There is a structural problem there. The more money we dump into it doesn't fix the structural problem. And for them to just over and over again say, just give us more money, just give us more money on it doesn't fix the real issue that's there. And so this is not as simple as just throw more money at it. And that's all we need. It's a real problem.

[Andrew Ross Sorkin]

So what, Maybe we'll play a sound bite of what you said for, for Leader Jeffries or something. I don't know. What, how do I ask him or Becky ask him exactly what it is. I guess it's what do you want? What, what, what will, what will it take to get.

[Joe Kernan]

His ask is just to be able to extend the premiums, which again, this is not about the Obamacare. The basic Obamacare is still there. This is above and beyond. This is something they tacked on during COVID saying, hey, it's an emergency for Covid, so we need.

[Andrew Ross Sorkin]

Becky points out it's a way they did it for budget constraints, like the same way that the Republic.

[Joe Kernan]

Well, if you actually read the text on it, it says temporary medical emergency addition.

[Andrew Ross Sorkin]

But it helped with the budget.

[Joe Kernan]

Budget correct on it. But yeah, it was, it was a thing they had, but it expired at the end of this year. So I think the key things is, is there fraud in the program, on the bottom part of the program? Because there's no doubt there is. That money is going to insurance companies, to people that don't even know they have the policy.

[Becky Quick]

How would you attach the fraud? I mean, do you hire more federal workers?

[Joe Kernan]

The most simple way to be able to do that is to be able to put a premium cost at all, even if it was a $20 premium. When it's a 0 premium, an insurance company can contact somebody and say, you want free coverage on something, they sign them all up for it. They don't even know they have it. They, they, they don't use it. We have a very high percentage of folks that don't use that stuff. So put some kind of premium on it, would you?

[Becky Quick]

Is $20 a number you'd actually agree with?

[Joe Kernan]

I don't, I'm not negotiating with Hakeem today. But, but I would say, yeah, there has to be something that's there. So it's not just a zero piece. And even Obamacare original wasn't zero. That was added during COVID to be able to do that. The other end of it is they've got folks that it's uncapped on the top.

[Becky Quick]

Yeah.

[Joe Kernan]

You've got people well in excess of 400% of poverty that are getting subsidies. You've got folks that make $150,000 a year that are getting Affordable Care act subsidies. Well, that would tell me it's actually not affordable. So we don't want uncapped on it. We definitely don't want fraud on the bottom of it. I would say a lot of Republicans are saying this was designed to be able to go around hide protection the way that it was shaped as a tax credit piece, going to insurance companies so that they could have elective abortion funding going into this fund without it having to hide protections. That would be one of those other issues. Say everything else has hide protections. Why did you create something intentionally to be able to go around it? And then we got to deal with the real root cause on this. Why is the Affordable Care act, why is that particular thing on the marketplace? 200% increase in commercial insurance, 29%.

[Becky Quick]

What was the, the time period on.

[Joe Kernan]

That six year time period 2013 to 2019? That's just in my state, in Oklahoma.

[Andrew Ross Sorkin]

Becky state.

[Joe Kernan]

Yeah, in Becky State.

[Becky Quick]

You know, one of my states. Yeah.

[Joe Kernan]

You know what, you know what happened last night when the Oklahoma City Thunder played the Indiana Pacers last night?

[Andrew Ross Sorkin]

Oh, my God. She's like, I don't know, over like your mother, your sister, your mother. You didn't know what to do.

[Joe Kernan]

Well, double, double, our second double overtime of the season. Played two games, two double overtimes, two wins on it.

[Andrew Ross Sorkin]

Yeah, but that was totally fixed.

[Joe Kernan]

Yeah, well, that's somebody else.

[Andrew Ross Sorkin]

Yeah, I'm kidding. Here's my prediction. And I'm going to, you know, give the benefit of the doubt to the Democrats next time. It's either Wes Moore or Josh Shapiro or Gretchen Whitmer. So I'm picking like the reasonable ones. If there ever is a president, they're going to love that ballroom. And they're going to bring people in from Europe and they're going to say, look at our ballroom. Look at this beautiful place. And they're going to love all. You know, that's going to, you know.

[Joe Kernan]

The Truman Balcony was added. In fact, Truman gutted the whole White House. He left only the exterior.

[Andrew Ross Sorkin]

Jefferson started it with adding the Porter Cup. Yeah, exactly. So who put in the bowling alley?

[Joe Kernan]

Well, and who did that? So the bowling alley was actually Nixon. No, I think that was Nixon.

[Andrew Ross Sorkin]

Yeah. It might have Been Nixon.

[Joe Kernan]

I think Nixon covered up the pool and then put in the, the bowling alley.

[Andrew Ross Sorkin]

Senator, it, it's a pleasure to have you in studio. And what are you in town for? You?

[Joe Kernan]

I've got multiple meetings. I had multiple meetings all day today. Then I'm getting home as fast as I possibly can.

[Andrew Ross Sorkin]

Okay, good. Well, next time you're here, please, please let us know. We'll, we'll do it again.

[Joe Kernan]

Yeah, look forward to it. It's great to visit with y'.

[Becky Quick]

All. Thank you. President Trump just posting on Truth Social. Canada cheated and got caught. They fraudulently took a big buy ad saying that Ronald Reagan did not like tariffs, when actually he loved tariffs for our country and its national security. Canada is trying to illegally influence the United States Supreme Court in one of the most important rulings in the history of our country. Canada has long cheated on tariffs, charging our farmers as much as 400%. Now they and other countries can't take advantage of the US Any longer. Thank you to the Ronald Reagan foundation for exposing this fraud. Make America great again. This is in reference to something we showed earlier in the program. President Trump has canceled trade negotiations and the deals that they've struck with Canada at this point because Ontario took out an ad using Ronald Reagan, a radio address that he did when he was president, and they edited it to some extent. But basically it was Ronald Reagan saying that he was a proponent of free trade and that tariffs were bad for the country. They did not put in some of the additional things he said, talking about where he would use them periodically for areas of national defense, but not in the broad use that the Trump administration has used at this point. But he also did say that the executive office should have, the president should have the ability to negotiate these things without being held back.

[Andrew Ross Sorkin]

They said they're inevitably bad for jobs in the country because they lead to trade wars. I mean, he did say for defense, but I would think that could be broadened to strategically if we've been on the receiving end of unfair, you know, the WTF or whatever the hell it is.

[Becky Quick]

Wto.

[Andrew Ross Sorkin]

Yeah, we can't count on wtf. Oh, yeah, that's right.

[Becky Quick]

The wto the world.

[Andrew Ross Sorkin]

The wtf.

[Becky Quick]

Not the what?

[Andrew Ross Sorkin]

The wwe.

[Becky Quick]

I think I meant not that either.

[Andrew Ross Sorkin]

No. Yeah, we can't count on them to solve all the Internet.

[Becky Quick]

They've dinged China for quite a while.

[Andrew Ross Sorkin]

Never works.

[Becky Quick]

It's been really effective.

[Katie Kramer]

Next on Squawkpod. After more than three weeks of shutdown, lawmakers are still circling, tackling the same sticking point. Health Care House Minority Leader Hakeem Jeffries stands firm.

[Hakeem Jeffries]

We extended the Affordable Care act tax credits in 2022 for three years. The program is working. It's providing health care to tens of millions of people in an affordable way, and it should be continued.

[Katie Kramer]

We'll be right back.

[Schwab Announcer]

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and [e-mail] MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.

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[Katie Kramer]

This is Squawk.

[Andrew Ross Sorkin]

Pod up and Becky Q.

[Becky Quick]

You're watching Squawk Box right here on cnbc. I'm Becky Quick along with Joe Kernan. Andrew is off today and a scandal rocking the NBA. Portland Trail Blazers head coach Chauncey Billups is among the more than 30 people, including alleged Mafia members, being charged with taking part in a massive scheme to rig underground poker games. Former NBA player Damon Jones has been charged with this, along with Miami Heat player Terry Rozier over an alleged scheme in which bettors were given inside information to wager on the NBA.

[Andrew Ross Sorkin]

I mean, Hollywood's like, oh my God, the mafia is still around. They mentioned all four crime families are still active. Martin Scorsese's like, I can't help you. Love this. Let's Aren't you looking for another? They're the best new content.

[Becky Quick]

Yes.

[Andrew Ross Sorkin]

Aren't the greatest movies greatest TV series ever? Sopranos. I saw a couple of people sent in some pictures of your alum fellow alumni from Booker Gandolfini, James Gandolfini. I realized how much I miss that guy. So much.

[Becky Quick]

Good guy.

[Andrew Ross Sorkin]

I've watched Sopranos twice already. I think I might do it again.

[Becky Quick]

Due for a third.

[Andrew Ross Sorkin]

Nothing else on they throw crap up against wall at Netflix. I'M canceling Netflix.

[Becky Quick]

All right, let's turn to Capitol Hill for the latest on the government shutdown, now in its 24th day. Joining us right now is House Minority Leader Hakeem Jeffries of New York. Leader, thank you for being with us this morning. I think the big question is how do we get out of this?

[Hakeem Jeffries]

That's an important question. And we continue to maintain that we will sit down with our Republican colleagues anytime, any place here at the Capitol or go back to the White House to enact the bipartisan spending agreement that actually meets the needs of the American people, improves their quality of life, lowers costs in an environment where inflation continues to move in the wrong direction. And we also need to decisively address the Republican health care crisis that is crushing people all across the country, particularly now that tens of millions of people are receiving notices that their health care premiums are about to skyrocket.

[Becky Quick]

There was an op ed in Roll Call recently that was pretty interesting on this. It said what you are asking the Republicans to do right now when they control the White House, the Senate and the House is effectively what the Democrats could not do when they controlled all three of those heads of government themselves. The 10 year setup for this, for these, the three year setup for the expiration of these credits was intentionally put in. It was put in when you controlled the White House, the House and the Senate. You couldn't get it passed for longer. And so this is a setup kind of of your own creation that you all couldn't extend beyond that. Now you want the Republicans to do something you didn't do when you were in power.

[Hakeem Jeffries]

It's not a setup beyond what we could do. We extended the Affordable Care act tax credits in 2022 for three years. The program is working. It's providing health care to tens of millions of people in an affordable, affordable way. And it should be continued. It's interesting to us that Republicans decided that they would prefer to permanently extend massive tax breaks for their billionaire donors in their one big ugly bill, which also at the same time dramatically increased the debt and enacted the largest cut to Medicaid in American history, but refused to consider extending Affordable Care act tax credits that actually benefit working class Americans, everyday Americans and middle class Americans. Their priorities are misplaced. And as Democrats, we're going to continue to fight for the American people all across the country in rural America, urban America, small town America, the heartland America of America, and of course, black and brown communities throughout America, all of whom are being devastated by this Republican healthcare crisis.

[Becky Quick]

Leader Jeffries, we were Just joined by Senator James Lankford from Oklahoma States United. He's a Republican, and his concern with this was that the ACA subsidies aren't helping bring costs down overall. He said that in his state, Oklahoma, if you look over six years, from 2013 to 2019, premiums for ACA plans were up by 200% versus premiums being up by 29% for commercial plans in his state. His concern is that there's something that needs to be fixed within this. Some of the things he threw out would be things like limiting franchise fraud by just requiring that there be at least a $20 premium or some premium that's put down instead of zero premium so that people get enrolled in things without even knowing that they're enrolled in some of these programs. What do you say to that?

[Hakeem Jeffries]

We've made clear in the House that we will consider anything that emerges from the Senate in good faith in a bipartisan way that both reopens the government while at the same time addresses this health care crisis and extends the Affordable Care act tax credits in a meaningful way. The 90% or so of the people who benefit from these Affordable Care act tax credits make $63,000 per year or less. And a significant number of small businesses and entrepreneurs across the country rely upon the Affordable Care act tax credits in order to provide health insurance for themselves and for their families. So this is an issue that needs to be addressed. In fact, we know that red state residents actually are disproportionately higher represented in terms of the Affordable Care act tax credits than any other part of the country. And so we're fighting for the American people here, and hopefully we can find a bipartisan path forward.

[Andrew Ross Sorkin]

It's such a complex issue, Leader. And what we're seeing now with the shutdown, some real effects starting to happen, I guess. And that's where people just separate out all the points that you're making right now about what's wrong with the health care system and when and how you fix it and when you're able to have those discussions and those negotiations and maybe it shouldn't be done, you know, by shutting the, you know, using leverage, which shuts the government down where you don't really have time to do it effectively. This is what Senator Lankford is talking about history. This is what he said when Republicans were going to do it about Obamacare.

[Joe Kernan]

Well, in 2013, as folks recall, Republicans were mad about Obamacare. We were pretty clear about it, and we had a big government shutdown. It was shorter than this one. And Democrats at that time said we will not negotiate on health care while the government is closed. Well, now it's literally the opposite on it that we're saying we're not going to negotiate on health care. Healthcare is incredibly complicated. You can't do it while people are not getting SNAP benefits. People are not getting paid. Air traffic controllers aren't getting paid. You can't sit there and say, we'll do this little tweak and that's going to be enough. It's not enough. So let's actually have a real conversation about all these issues, but not while there's a shutdown.

[Andrew Ross Sorkin]

And I think it's possible, Leader, that Republicans all feel that way and we're just going to be stuck here until some really bad things happen.

[Hakeem Jeffries]

Yeah, we haven't shut the government down. Donald Trump is the president. Republicans control the House and the Senate. And what we've repeatedly made clear is that we would not support a partisan Republican spending bill that continues to gut the health care of the American people. In an environment where Republicans already enacted the largest cut to Medicaid in American history, hospitals, nursing homes and community based health centers are closing because of Republican policies in their one big, ugly bill. All across the country, Medicare is facing a $536 billion cut at the end of the year unless Congress acts again. Connected to the one big ugly bill. And now Republicans are refusing to even consider extending the Affordable Care act tax credits when open enrollment starts on November 1st. This is a now issue, but leader.

[Andrew Ross Sorkin]

Jeffries here, you kind of conflated a spending bill with a clean CR. It's only 24 pages. It keeps the government open at this point. And the House passed it. It's ready to go. The Senate has it. I know that the Republicans control everything, but you know how a filibuster works. And God forbid Republicans, you know, fold on the filibuster because it'll be used, you know, both parties will use it against the other. It's one of the last safeguards that make the Senate different House. And the only reason the Senate can't do it is purely because of Democrats. And you had one of your colleagues in the Senate say, this is the only leverage we have. People are going to get hurt. This is the only leverage we have to get what we want on health care. That's a bad look.

[Hakeem Jeffries]

Yeah, this is not, this is not, this is not about leverage. And by the way, if the votes of Democratic senators are required, then of course there should be a bipartisan discussion about enacting a Spending bill that is designed to actually make life better for the American people, Lower the high cost of living in an environment where Donald Trump and Republicans promise that costs were going to go down on day one. Costs aren't going down. Inflation is moving in the wrong direction. The Trump tariffs are causing thousands of dollars of additional expense on everyday Americans. Grocery costs have gone up, housing costs are going up. Electricity bills are through the roof. And now people are faced. Tens of millions of people are facing dramatically increased health care premiums. In some instances 1,000 or $2,000 more per month. These are working class people. This is unaffordable. And of course, it's a crisis. That is right now.

[Andrew Ross Sorkin]

But what changed from when the Democrats said we will not negotiate when the government is shut down on health care, not now. Reopen the government, they will negotiate. That happened in 2013. What happened? What changed since then to where we are now, where you can use a government shutdown to extract concessions from Republicans?

[Hakeem Jeffries]

We are not using a government shutdown to extract any concessions. We want to reopen the government immediately. Donald Trump has refused to meet with Democrats over the last 24 days. He spent more time on the golf course than he has actually talking to Democrats on Capitol Hill. He's found time to demand that the Department of injustice give him $230 million in taxpayer money. He's found time to bail out a right wing wannabe dictator in Argentina with $40 billion. He's found time to demolish the east wing of the White House in the most horrific way possible because he wants to erect a ballroom so he can be celebrated like a king. He's found time for all of these different things, but somehow can't be bothered to reopen the government to extend the Affordable Care act tax credits.

[Becky Quick]

Okay, let's talk about some of these issues. You bring up inflation and you're right to do so. We just got the cpi. It was not quite as hot as how had been anticipated, but inflation is higher than the Fed's target range or than anybody feels comfortable with. The problem is inflation is often caused by government spending. Additional government spending is not likely to get it to the point where we are going to see less inflation out there. How do you handle that?

[Hakeem Jeffries]

This is not additional government spending.

[Becky Quick]

It is additional government spending. You're looking for another $350 billion of additional government spending over the next 10 years with.

[Hakeem Jeffries]

No, no, we're actually. We're actually extending a tax credit that currently exists. And what's interesting is that. And then one big ugly bill where Republicans raised the debt ceiling by about over $4 trillion, exploded the deficit and the debt. But then they used a policy framework called currently current policy baseline, which is to say that if you just extend current policy, it has no fiscal impact. So the question is, I'm not a.

[Becky Quick]

Big fan of any of those numbers in the government.

[Hakeem Jeffries]

So the question is. So the question is why, why, why, why? Why are Republicans willing to use that approach when it comes to massive tax breaks?

[Becky Quick]

Like I said, I'm not a big fan without any of the government, not a big fan of how any elected officials tend to use figures to tell us what we want to hear with some of these things. Additional government spending, though, is going to mean worse numbers when it comes to inflation. Is there a way to get everybody together and try and find ways to fix the base problems with health care and try and make sure that people are being given the help that they need along the way? It seems like it's a really tough thing to do when the government's been shut for 24 days. That that is not a great situation that we're asking other people to bear the pain.

[Hakeem Jeffries]

We have a broken health care system and it obviously needs to be fixed in a decisive way. But there are steps that should be taken right now with respect to the reality that tens of millions of Americans are receiving notices as we speak indicating that their health care premiums are about to skyrocket in ways that will bankrupt them or deprive them of the ability to go see a doctor when they need one, when their children or when their families need one. This is not an artificially made up thing. November 1st open enrollment begins. The notices are going out. Marjorie Taylor Greene agrees that something needs to be done with respect to the Affordable Care act tax credits. And traditional conservatives in the House agree. They just sent a letter to Mike Johnson indicating that this is an issue that needs to be agreed.

[Becky Quick]

There are problems.

[Andrew Ross Sorkin]

Agreed.

[Becky Quick]

That's a first problem.

[Andrew Ross Sorkin]

That's a first for you, Leader Marjorie Taylor Greene. I love it. You got to love the irony there. Hey, you know what else is passed after November 1st? The election for mayor in New York. Come on, are you ready? Are you ready to endorse Mamdani yet, Leader Jeffries?

[Hakeem Jeffries]

As I've repeatedly said, Joe, I have more to say about the mayor's race when I have more to say about the mayor's race.

[Andrew Ross Sorkin]

Today's the day for more. Today is. This is part of the future you were talking about last time you were on. This could be the future that you were talking about when you could do it? No.

[Hakeem Jeffries]

Well, let me say that. Listen, I'm going to continue to lean into the principle, as Democrats, affordability, that we believe in a strong floor and. No, well, listen, affordability, of course, is the top issue for the country. But as Democrats. Listen, we believe in a country that brings about a strong floor and no ceiling. You work hard, you play by the rules, there should be no ceiling to your success. That's what I believe in. But at the same period of time, there should be a strong floor anchored in things like Social Security, Medicare and Medicaid.

[Andrew Ross Sorkin]

Was that an endorsement that almost sounded like you're easing into. So that's what Mamdani. A equals B equals C. That's what he stands for. Therefore, you're endorsing Mamdani. Is that. Have I got that?

[Hakeem Jeffries]

No, that's not what. That's not what I'm saying. That's not what I'm saying. But what I will say is that I do think that he took a important step in indicating he plans to retain Police Commissioner Jessica Tisch, who's doing a great job by all accounts.

[Andrew Ross Sorkin]

Okay. So that, that's getting you closer and closer. We appreciate. Oh, you appreciate. As always, speaking with you today, leader.

[Hakeem Jeffries]

Thank you.

[Katie Kramer]

That's Squawk Pod for today and for the week. Happy Friday to all. Join us next week. Squawk Box, hosted by Joe Kernan, Becky Quick and Andrew Ross. Sorkin is on CNBC every weekday morning starting at 6 Eastern. Get the best of our TV show right into your ears when you follow Squawkpod. Wherever you like to get your podcasts, hit that follow button and don't miss a minute. Have a great weekend. We'll meet you right back here on Monday.

[Joe Kernan]

We are clear.

[Hakeem Jeffries]

Thanks, guys.

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