WSJ What’s News — Episode Summary

Title: Why Economists Are Urging Caution About November’s Inflation Report
Date: December 18, 2025
Host: Sabrina Siddiqui (for The Wall Street Journal)
Featured Guests:

• Chao Deng, WSJ U.S. Economy Reporter
• Benoit Faucon, WSJ Security Correspondent

Episode Overview

This episode dissects November's surprisingly low U.S. inflation report and the skepticism economists have expressed about its accuracy. It also covers a major Trump Media merger, ongoing ISIS-inspired attacks, President Trump's executive order on marijuana, and the renaming controversy of the Kennedy Center. The show maintains its signature brisk, news-centric tone, delivering concise but insightful exchanges on business, policy, and global affairs.

Main Discussion: November’s Inflation Report

Key Points

• Headline Numbers:

  • November inflation fell to 2.7%, beating economist expectations and dropping from September’s 3%.
  • No October report was released due to the government shutdown, complicating data continuity.

• Economists' Skepticism:

  • The Bureau of Labor Statistics (BLS) was forced to use technical workarounds during the shutdown (01:36).
  • Data collection on housing was especially impacted. The BLS assumed little movement in housing costs, which make up a significant portion of inflation calculations.
  • Holiday season timing (post-shutdown reopening coinciding with Black Friday/Thanksgiving discounts) may have further skewed the data downward.
  • Economists believe these factors combined likely understated inflation in this report.

• Fed Implications:

  • The Federal Reserve is expected to place greater emphasis on the December inflation report before considering interest rate changes (02:52).
  • Even prior to the data release, Fed Chair Jerome Powell cautioned about possible data distortions.
    • Memorable quote:
      • “Fed Chairman Jerome Powell was warning that there could be potential distortions and really playing down the data.” (00:32)

Selected Quotes & Timestamps

• “[Economists] were warning that some of the technical workarounds the agency had to use meant that the November figure might be biased a bit downwards...”
  — Chao Deng, 01:36

• “Because the housing component composes a big part of the headline inflation, that workaround could have put downward pressure on the headline inflation reading.”
  — Chao Deng, 01:36

Markets & Major Business Moves

Trump Media-Fusion Merger (03:11)

• Trump Media & Technology Group will merge with TAE Technologies (fusion power), a deal valued at $6 billion.
• The merged company targets the AI-fueled energy market, aiming for an operational fusion power plant by 2031.
• Fusion energy, while promising, is not yet commercially viable.
• Trump Media's shares surged by 42% post-announcement but remain down 56% for the year.

Law Firm Consolidation

• Hogan Lovells and Cadwalader plan to merge, potentially forming the fifth-largest global law firm (over $3.6 billion in revenue, 3,000+ lawyers).
• Merger reflects a broader industry trend toward consolidation to secure market share and talent.

IPO News

• Elliott Investment Management weighs public offerings for Barnes & Noble and UK’s Waterstones, possible as early as late next year.

Global Security: ISIS-Inspired Attacks

Sydney Hanukkah Attack (05:50)

• Attack in Sydney during a Hanukkah celebration left 15 dead; perpetrators believed to be ISIS-influenced.
• Benoit Faucon explains ISIS's evolving digital recruitment and operational strategies (06:23).

Recruitment & Radicalization

• ISIS leverages supporters' private servers and social media to attract recruits. Content is quickly taken down, but not before reaching target audiences.

• Quote:

  • “It relies on supporters as echo chambers, starting on servers rented by the supporters of the group. And then from there they disseminate on social media and a very large number of platforms... that attracts the attention of would be recruits.”
    — Benoit Faucon, 06:23

• Supporters get remote access to attack tutorials—no travel or direct contact required.

Examples of Recent Attacks

• Attacks in Sydney, Manchester (synagogue), and New Orleans were all ISIS-inspired but lacked direct, proven operational ties to central ISIS leadership (07:10–08:15).

Notable Distinction

• Unlike the 2015 Paris attacks (where assailants trained and coordinated directly with ISIS in Syria), recent attackers have acted on remote inspiration alone.

• Quote:

  • “Here it’s very different. We don't know about any operational connection. Let alone physical connection of going to territories, you know, controlled by the group.”
    — Benoit Faucon, 08:18

Group’s Response

• ISIS-linked outlet Al Naba expressed pride but did not formally claim the Sydney attack, underlining a shift from coordinated to inspired violence (08:54).

Policy Watch: U.S. Federal Cannabis Reclassification

• President Trump signed an executive order for marijuana to be reclassified as a Schedule 3 drug (09:23).
  • This aligns cannabis with prescription drugs like ketamine and testosterone.
  • The change aims to boost medical research and reduce tax burdens on cannabis businesses.
  • The move stops short of full federal legalization but marks a significant policy pivot.

Civic Spotlight: Kennedy Center Renaming Debate

• The board of the Kennedy Center voted to rename it the Trump Kennedy Center (09:23).
  • President Trump appointed many current board members.
  • Legal authority for this name change is uncertain; Congress established the original name in 1964.
  • The new name could appear on the building as soon as this week, pending clarification.

Timestamps for Notable Segments

• Inflation report analysis: 00:42–03:11
• Trump Media merger and market response: 03:11–04:37
• ISIS attack coverage and trends: 05:50–09:14
• Cannabis reclassification & Kennedy Center renaming: 09:23–10:45

Memorable Quotes

• “Technical workarounds the agency had to use meant that the November figure might be biased a bit downwards...”
  — Chao Deng, 01:36

• “Fed Chairman Jerome Powell was warning that there could be potential distortions and really playing down the data.”
  — Sabrina Siddiqui, 00:32

• “It relies on supporters as echo chambers, starting on servers rented by the supporters of the group.”
  — Benoit Faucon, 06:23

Summary

This episode warns listeners not to take November’s low inflation at face value due to technical distortions caused by the government shutdown and timing around holiday discounts. It spotlights a series of mergers in media and law, analyzes the changing tactics of ISIS-inspired terrorism, and breaks down major domestic policy moves—especially federal cannabis reclassification and the contentious renaming of the Kennedy Center. The reporting is sharp, data-driven, and laced with insights from key Wall Street Journal correspondents.