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Some Americans Feeling More Optimistic About Economy; Justice Department Deadline to Release Epstein Files; AI Chip Lifespan Raises Concerns Over Spending Boom. Aired 3:30-4p ET
Aired December 19, 2025 - 15:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:30:00]
ISABEL ROSALES, CNN HOST: President Trump is taking his economic message to Rocky Mountain, North Carolina today, capping off a week of events where he's claimed to have made progress in bringing down prices, even as many Americans continue to feel squeezed by the cost of living.
BRIANNA KEILAR, CNN HOST: But a key new survey from the University of Michigan does note there's a small but notable uptick in optimism, and it shows some Americans feeling slightly better about the economy, with consumer sentiment edging up over the past month.
CNN's Vanessa Yurkevich is joining us with the new numbers. What is this, Vanessa?
Good news? What does this data show?
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Let's take this with a grain of salt, and here's why. This is the mindset that we're hearing from people heading into the holiday season. So we did see an uptick in the month of December in consumer sentiment, so that's good, up 3.7 percent. Should note, though, that's within the margin of error of this survey. But, of course, this is much better than the significant declines in consumer sentiment that we saw over the summer when President Trump really ramped up his trade war. And then you could see on an annual basis there a decline, though, of nearly 30 percent in consumer sentiment. So that's just the year-over- year change that people are truly feeling.
Remember, this time last year, President Trump wasn't even in office yet. He was yet to be inaugurated. So how are consumers feeling?
What are they saying to the University of Michigan who conducts this survey? Well, low-income Americans are feeling a little bit better. They're improving in consumer sentiment, maybe because we've seen some price moderation.
But higher-income sentiment has really been unchanged. We've seen higher-income earners even trading down in where they shop at places like Walmart just to try to save money because they feel like they're being squeezed. But 63 percent of all Americans surveyed said that they expect unemployment to rise next year. And look what we saw with inflation and the jobs numbers. We saw that, actually, unemployment rose to its highest level in four years at 4.6 percent. And then consumers also saying that they're just not going to be spending money on those big-ticket items right now. But what is the state of the economy as we know it and see it today based on the data that we do have?
Well, in the month of November, we saw that inflation fell to 2.7 percent from 3 percent in September. However, economists are warning you have to take that with a grain of salt also because there was a lot of data collection that wasn't really happening because of the government shutdown. So some of those numbers may be missing.
The jobs market is slowing, 64,000 jobs added in November, a loss of 105,000 jobs in October. But finally, maybe some encouraging news for Americans. The Federal Reserve did cut rates for the third time in December.
Those interest rate cuts tied to people's credit card rates, car loan interest rates, school interest rates, and obviously mortgage rates. So maybe some relief on the horizon. But heading into the holidays, people feeling a little bit better.
[15:35:00]
But overall, year to year, still feeling pretty lousy about where the economy is right now.
KEILAR: Vanessa Yurkevich with our grain of salt, maybe our entire salt lick. But nonetheless, thank you so much for the latest there.
Coming up, the Justice Department has just hours left to release the Jeffrey Epstein files. A lawyer representing 11 Epstein accusers joining us live next.
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KEILAR: The Justice Department has just hours left to release its trove of documents tied to the Jeffrey Epstein investigation. Deputy Attorney General Todd Blanche says they'll hand over, quote, several hundred thousand documents today, with more to come in the weeks ahead.
[15:40:00]
ROSALES: That prompted an angry response from Senate Minority Leader Chuck Schumer, who says, quote, "The law Congress passed and President Trump signed was clear as can be. The Trump administration had 30 days to release all the Epstein files, not just some. Failing to do so is breaking the law. This just shows the Department of Justice, Donald Trump, and Pam Bondi are hell-bent on hiding the truth."
Joining us now is attorney Arick Fudali, who represents 11 of those Epstein survivors. Sir, thank you so much for being on the show. Really appreciate your time. I can imagine that today is a very emotional day for your clients and everything that they have been through. What will you guys be looking for once the files are released?
ARICK FUDALI, ATTORNEY REPRESENTING 11 EPSTEIN ACCUSERS: Well, the first thing we'll be looking for is for the entire trench of files to be released. You know, hearing this latest news, unfortunately, is not surprising that they intend to sort of stretch this out, elongate this process, and sort of trickle documents throughout the next coming weeks. You know, that's really not acceptable.
For me, it's not acceptable. For my clients, it's not acceptable. For the survivors, it shouldn't be acceptable under the law.
You know, as a civil litigation attorney who does a lot of civil trials, if I miss a deadline set by the judge, that's a really big deal, and it's very frustrating to see sort of these laws and these rules just be bended without really any consequence or bent without any consequence for, you know, this administration, for the Department of Justice.
But what we're looking for when they do finally come out is really three things. The first, of course, is did anyone and is there evidence of anyone who actually co-abused with Jeffrey Epstein?
Two, who was there who enabled, facilitated, knew what was going on, and continued to facilitate and enable Jeffrey Epstein's crimes?
And the third is, who continued to associate with him after 2008? And that's important because in 2008, although Alex Acosta only gave him a slap on the wrist, he did require Jeffrey Epstein to be a registered sex offender. That was public information.
So I am very intrigued and very interested to see which individuals, especially which high-profile individuals, continued to closely associate with Jeffrey Epstein after he was a convicted sex offender. Did they continue to go to his island?
Did they continue to spend time with him and the many young girls who were around him? That's what I'm really interested in seeing.
KEILAR: Do you have concerns that -- I mean, and again, we're not seeing all of the documents today, according to Todd Blanche, right? This is going to be coming out in tranches, huge tranches. But nonetheless, do you have concerns that once all of the documents are out, that actually it's not going to be a complete accounting where you see the names of co-abusers, alleged co-abusers that some are expecting to be in there?
FUDALI: Unfortunately, I have grave concerns about this. You know, this is not an administration who has garnered the trust of really anyone, especially me and my clients, when it comes to how they've handled the Epstein -- the Jeffrey Epstein issue. And this dates back for, you know, for decades, really from Trump's first administration.
But for, you know, as we sit here today, Ghislaine Maxwell is sitting in a minimum security, you know, resort-style prison. Everything this administration seems to have done so far has been, you know, on the side of Jeffrey Epstein and his enablers. You know, Donald Trump as an administration for months fought the release of these documents.
A law was not necessary for these documents to be released, for this file to be released, but Donald Trump made it so. So I am very concerned, and especially, you know, first chance we have, the first news we hear is the deadline's today out, but they're not all going to be revealed today. So I'm very concerned that even when they claim that all the documents have been revealed that they may not be.
And I don't know what other, you know, conclusion any reasonable person could come to seeing how this Jeffrey Epstein issue has been handled and seeing how Jeffrey Epstein continues to get special treatment even beyond the grave.
ROSALES: Democratic leader Senator Chuck Schumer says that if the DOJ fails to release all of the Epstein files, officials will be in violation of the law. Now, you just said you had grave concerns about critical information potentially being withheld. If that is the case, do your clients plan to sue the DOJ?
FUDALI: Well, we actually -- actually my clients filed a lawsuit today that's against the FBI, and that's for something that actually happened prior in the 90s for the FBI's alleged failure to investigate credible information for Jeffrey Epstein. We're absolutely not putting that off, you know, we're leaving that on the table for any further lawsuit. You know, we're going to continue to fight.
And if it appears to us, and there's evidence that the DOJ is withholding information intentionally in violation of the law, we will absolutely be bringing lawsuits against the DOJ. You know, no one is above the law, especially law enforcement.
ROSALES: Yes, and America's waiting, 11:59 p.m. That is a deadline for all of these documents to release. We heard there from Todd Blanche, not all of them will be released. Arick Fudali, thank you for your time.
[15:45:00]
Well, ahead, growing concerns about a possible AI bubble as tech giants continue to spend hundreds of billions of dollars on artificial intelligence. That's next on CNN NEWS CENTRAL.
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KEILAR: There are some new worries that the billions invested into AI data centers and the chips that power them may not pay off. This year alone, tech giants are expected to pour $400 billion into AI-related projects.
ROSALES: Now, some are questioning how quickly those chips will wear out and whether AI will deliver on investments fast enough. CNN's tech reporter Clare Duffy joins us now. Clare, help us understand all of these concerns. CLARE DUFFY, CNN TECH REPORTER: Yes, so that $400 billion that tech companies are investing in AI data centers and chips this year alone, that's not just going to be a one-time investment spree and then this infrastructure will be built and done. These companies are going to need to continue in data centers and chips this year alone. That's not just going to be a one-time investment spree and then this infrastructure will be built and done.
These companies are going to need to continue investing in upgrading the chips that power those AI data centers. And as you said, there are growing questions about just how long the lifespan of those chips is. Experts tell me that the GPU chips that power AI data centers, they don't last as long as the CPUs that are used in traditional data centers.
And that's in part because training AI models is a really intensive process that exposes these chips to a lot of heat and stress. The failure rate for GPUs is around 9 percent annually versus 5 percent annually for CPUs. And this is also just because the AI chip companies are becoming so much more power efficient with every generation they release.
So even if the chips physically can last for five or six years, it might not be economical to continue using them beyond two or three years. And all of this matters because there are big questions about whether these tech companies will see returns from their investments on artificial intelligence both big enough and quickly enough to cover their existing AI infrastructure investments and these future chip purchases. As one expert told me, the extent to which this buildout is a bubble depends in part on the lifespan of these investments.
Because if the chips last six years, the tech companies have a bit more time to figure out this business model. But if they only last 18 months to two years, then there's a lot more pressure on these companies. And why should anybody care about this?
Well, it's because much of the economy is currently resting on the success of the AI industry. So if this is a bubble that bursts, if these tech companies can't figure out this business model, it could hit all of our 401ks.
ROSALES: Yes, that's a big deal, the potential AI bubble, and whether it's a thing, whether it's bursting. Clare Duffy, thank you.
DUFFY: Thank you.
KEILAR: And ahead, we sent two of our favorite New Yorkers looking for this. This is fun. Seriously, people, you want to stay tuned for this.
Harry Enten and John Miller, unlike you've seen them before, on the streets of Manhattan looking for the perfect gift.
[15:55:00]
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KEILAR: New York can be beautiful during the holidays, but it can also be jammed with tourists and New Yorkers alike.
ROSALES: Yes, and we sent two of our favorite New Yorkers, Harry Enten and John Miller, out onto the streets to soak up the holiday spirit and do a little bit of shopping. Watch.
(BEGIN VIDEOTAPE)
HARRY ENTEN, CNN CHIEF DATA ANALYST: This is one of my favorite times of the year, and perhaps there's nothing more magical in New York City this time of year than going window shopping and enjoying all the great windows and all the great stores that there are.
JOHN MILLER, CNN CHIEF LAW ENFORCEMENT AND INTELLIGENCE ANALYST: I love window shopping. Maybe we can buy a nice window.
ENTEN: Maybe you can buy me a nice one. All right, you ready?
MILLER: I'm ready.
ENTEN: Let's go shopping.
MILLER: All right.
ENTEN: So here we are at Tiffany's, John. Is this jewelry impressive, or should we find someplace else to shop for the loved ones in our lives besides ourselves?
MILLER: I think we need to go a little bit down in price range.
ENTEN: All right, now we've made our way to Bergdorf Goodman's, which I'm told is a personal favorite of yours.
MILLER: Yes, yes, very much.
ENTEN: And is that because your middle name is actually Bergdorf?
MILLER: If it comes with a discount, I'll take it.
ENTEN: There you go.
MILLER: I think the thing about Bergdorf's is the window display is never about the products.
ENTEN: OK.
MILLER: It's very impressionistic. Like, this one is all about time.
ENTEN: Ah.
MILLER: Which, when you do all your Christmas shopping at Christmas Eve, is an important thing.
ENTEN: It's lacking on the time. What is this dress?
MILLER: Well, first of all, I think it's a little bit about sequins, but I think it's more about white hair. ENTEN: Yes, it seems, and you as an expert, I, of course, not really
much of one when it comes to white hair, except for when --
MILLER: Give it time.
ENTEN: Give it time.
All right, we've made our way down to Saks Fifth Avenue, and it feels like every store, or at least every other store here, pays homage to, of course, the icon of New York City, the pigeon. That's a pigeon, I think, in a cage.
MILLER: Yes.
ENTEN: It's the first time ever that someone has tried to domesticate a pigeon here in New York instead of just trying to shoo it away.
What type of window display is this?
MILLER: So this is, Saks always goes -- this is like an advent calendar.
ENTEN: I am of the belief that there's a special thing that's going to come out of this window.
It's a menorah! Yay! We did it!
MILLER: So this --
ENTEN: This is it. The famous
ENTEN AND MILLER: Rockefeller Center Christmas tree.
ENTEN: It makes me want to convert a little bit.
All right, John, we've made our way downtown to perhaps the most iconic store associated with the Christmas season here in New York, and that, of course, is Macy's.
MILLER: So their Christmas windows usually tell a story about a character, but this year, they're telling the story of the Macy's Christmas windows in the Macy's Christmas windows.
ENTEN: Now, what was that called?
MILLER: It's life imitating art, imitating life imitating art.
ENTEN: Do we want jingle bells, deck the halls, or we wish you a Merry Christmas?
MILLER: Go with jingle bells. We can't screw it up.
ENTEN: I beg to differ.
MILLER AND ENTEN: Jingle bells, jingle bells, jingle all the way. Oh, what fun it is to ride in a one-horse open sleigh. ENTEN: Merry Christmas, happy Hanukkah, season's greetings, happy holidays to all of you. Bye, John.
MILLER: Bye, Harry.
(END VIDEOTAPE)
KEILAR: Our thanks to Harry and John.
And we do have breaking news. We have learned that the Jeffrey Epstein files have just been posted to the DOJ website. We'll have much more on the files and what is in them on THE ARENA with Kasie Hunt, which starts right now.
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