CNBC's full interview with House Minority Leader Rep. Hakeem Jeffries

[00:00:00] Speaker 1: Join us right now, House Minority Leader Hakeem Jeffries. There is so much to talk to you about this morning, about everything that's going on in Washington, about the BLS, the Fed. We could talk about NVIDIA, the Democratic Party. But I want to start with this. And by the way, may it cope on me too, but I'm curious where you land. For the last several months, the Democratic Party, for the most part, has been publicly suggesting that because of these tariffs, that the economy was going to falter, that there was going to be a massive recession. And for whatever reason, that has not happened. And I'm curious why you think that hasn't happened and whether you think it was a mistake to be as critical as you have been. [00:00:47] Hakeem Jeffries: Well, good morning. Great to be with you. Donald Trump promised on day one that costs were going to go down. Costs haven't gone down. They've gone up. What we have seen, in fact, is job creation go down almost to record low levels. And so there is reason to believe that the economy is not moving in the right direction. The erratic tariff policies have created a great deal of uncertainty in the business environment. And uncertainty, of course, doesn't allow for the type of explosive economic growth that we would all like to see here in the United States of America. I think there's no real basis to conclude that Donald Trump has been successful, particularly as it relates to the core issue of driving down the high cost of living in the United States of America, which is too high, which was his fundamental promise to the American people. Costs aren't going down. They're going up. [00:01:41] Speaker 1: But are you surprised? I'm just asking just as a person. Are you surprised that the tariffs haven't had a bigger impact on prices, for example? [00:01:53] Hakeem Jeffries: I think it remains to be seen where this is headed. I'm deeply concerned that the tariffs are going to exacerbate the inflationary challenges that we already have in the United States of America, the affordability issues that we have in the United States of America, particularly as it relates to consumer goods and consumer goods that are going to be important to the American people as folks prepare to send their children back to school. [00:02:18] Speaker 3: Mr. Speaker, I don't know about deflation and costs coming down. All I can tell you is that the inflation rate itself was 2.7% in the most recent read year over year versus it got to a high of 9% under Biden. Stocks are at record highs. Unemployment is 4.2%. That's full employment. The GDP was 3%. The border is actually secure. We've got trade deals with EU, Japan, many more in the works, and trillions of dollars of foreign investment coming here. Iran's nuclear ambitions have been set back indefinitely. And I just wrote down a few things. So I just have to ask you, where is the calamity that you're talking about? And it almost seems like for Democrats, socialism is the answer to these problems. Or, I don't know, an end of democracy or something? We just don't get it. [00:03:18] Hakeem Jeffries: Well, actually, I'll tell you what we stand for, Joe. It's pretty clear. As Democrats, we believe in a strong floor and no ceiling. In America, you work hard. You play by the rules. You should be able to live the good life. And there should be no ceiling on your success, on your capacity to do anything in the United States of America. That's the great promise of this country. At the same period of time, there should be a strong floor. Today is the 90th anniversary of Social Security. It was born 90 years ago today. What we've seen from this administration is an attack on Social Security, an attack on Medicare, an attack on the Affordable Care Act, ripping Medicaid away from millions of Americans. That actually is the type of strong floor that we should also have in this country. You pass one big, ugly bill that's now law on a partisan basis that represents the largest attack on health care in American history. Hospitals will close. Nursing homes will shut down. Community-based health clinics will be unable to operate. People all across the country are going to experience increased premiums, co-pays, and prescription drug prices. That's a problem for everyday Americans. I'm not talking about people who are already wealthy and well-off and well-connected. I'm talking about the everyday Americans that I represent in Brooklyn and that we're fighting hard for. In fact, those same Americans, food is being ripped out of the mouths of hungry children, veterans, and seniors with the largest attack on nutritional assistance in American history. I find that problematic in the United States of America, and millions of people do so as well. [00:05:03] Speaker 1: Leader, where do you land on this mayoral race in New York, and in particular on Mondani, who is clearly now the front-runner in this situation, won the primary, you have not publicly come out and endorsed him yet. And I'm curious what you're thinking. [00:05:23] Hakeem Jeffries: Well, he ran a strong race in the primary, obviously, relentlessly focused on affordability, which is a big problem, of course, here in New York City, along with every other part of the United States of America. And he outworked the opposition. He out-messaged the opposition and out-organized the opposition. But now, during the general election, of course, he's going to have to demonstrate to a broader electorate, including in many of the neighborhoods that I represent in Brooklyn, that his ideas can actually be put into reality. And that's, you know, the conversation that he's having with me and having with people who are community leaders and residents in the 8th Congressional District I serve. [00:06:08] Speaker 1: And that sounds like you're not convinced then yet. [00:06:14] Hakeem Jeffries: No, well, we had one initial conversation. It was a constructive and candid conversation. It was centered around the community. And in that conversation, he indicated he'd like my help in putting together additional meetings with members of the congressional delegation, as well as leaders in many of the communities that I represent in neighborhoods like East New York and Brownsville, Canarsie, some of the more lower-income, working-class neighborhoods that I may serve. I agreed to do that. That meeting is being put into motion right now. [00:06:46] Speaker 1: How do you think about him relative to Cuomo? And how do you think about the message of socialism or being a socialist and what that may portend for the Democratic Party? [00:07:00] Hakeem Jeffries: Well, I think as I indicated, listen, my view about what we as Democrats stand for, what we're fighting for, we need to lower the high cost of living in the United States of America. We need to fix our broken health care system. And we need to clean up corruption in Washington, D.C. So we actually have a government that works for the American people, for everyday Americans, for hardworking American taxpayers, as opposed to working for the privileged few. That's what that one big ugly bill was about. Cut health care, devastate nutritional assistance, reward Republican billionaire donors with massive tax breaks. That's not us as Democrats. Here in this country, work hard, play by the rules. You should be able to afford to live the good life. Good paying job, good housing, good health care, good education for your children, and a good retirement. Which, by the way, means protect Social Security and Medicare because they are earned benefits, not entitlement programs. Don't try to devastate them. I understand that. I'm just curious. [00:08:03] Speaker 1: I'm curious where you land on things like, you know, freezing rent, free buses, giving away, free food at supermarkets and the like, and what you just think of that idea and what it represents. [00:08:21] Hakeem Jeffries: Listen, Zoran is going to have to make the case to the people of New York City, including in the neighborhoods that I represent, that these ideas, which are designed to address affordability in New York City, and that as a top-line effort is important, the cost of living is the number one issue here in the city, number one issue across the country. It's why Donald Trump's poll numbers are in the basement right now. But do you agree with those approaches [00:08:48] Speaker 1: as a solution? Look, you and I agree. Affordability is the number one issue. New York is the number one issue in the country. And so he has done a great job of identifying that issue and articulating that issue. The question is how you attack that issue. And what I'm asking you is whether you agree with the solutions that he's offering. [00:09:12] Hakeem Jeffries: Here's what my solution would be. And I've said this directly to him and will continue to say it to policymakers across the city, the state, and the country. We have a situation in New York City and across America where the demand for housing that is affordable greatly exceeds the supply. That's a problem. That imbalance is jamming people up, working-class residents, moderate-income residents, middle-class residents. In New York City, if you're a police officer married to a nurse, you can't even afford to purchase a home in this city. That's problematic. So we have to build our way out of this problem. That's all hands on deck. That's city, that's state, that's federal. That also means a meaningful partnership with the private sector. That has always been my position. That will continue to be my position because it's the right position for the people that I serve. [00:10:13] Speaker 1: Andrew Cuomo has made the point that Zoran Mandami lives in a rent-controlled apartment even though he is not considered, quote-unquote, poor. And that Andrew Cuomo would actually try to create a law in the state that would prevent people like Mandami from being, from living in a rent-controlled apartment. Do you think that he should live in a rent-controlled apartment? [00:10:36] Hakeem Jeffries: Well, listen, that's an issue for the state legislators and the state government to work out. No, but it's a fascinating issue [00:10:44] Speaker 1: about affordability in this city and whether there are folks who are living in rent-controlled apartments all across this city that effectively should be going towards poor people who need that affordability. [00:10:58] Hakeem Jeffries: It's a legitimate issue that has been raised and the Mandami campaign is going to have to address it. [00:11:06] Speaker 1: Talking about issues that folks are going to have to address, what do you think of the president's decision to replace the BLS director in terms of this new person who's just been put into this role? [00:11:24] Hakeem Jeffries: I think it's a disgrace, but it's part of a consistent pattern that the Trump administration has attacked the free enterprise system here in the United States of America. The Trump administration has unleashed the largest pay-to-play scheme in modern American history, and everybody in corporate America knows it. Everyone in Washington, D.C. knows it. Is that not an attack on a free market-based economy here in the United States of America? Seems to me that it actually is. That's problematic. But here's the thing, you're talking about a free market. [00:12:05] Speaker 1: This is why I wanted to go there because you're talking about a free market on one side and being an advocate for a free market on one side, but at the same time, we just had a whole conversation about an individual who is running for mayor in New York City who is genuinely titling themselves a socialist. And you're saying that you might ultimately support them. And so I'm trying to understand the distinction here. [00:12:30] Hakeem Jeffries: No, no, no. I'm trying to understand why you would spend a significant amount of time asking me about the Democratic nominee who's not even the mayor and it's not a legitimate point to raise about a president who is regularly attacking the free market economy, bullying corporations, bullying universities, bullying law firms. He just recently called upon the CEO of Goldman Sachs to fire their chief economist. That's not problematic. He's the leader of the free world, the president of the United States of America. He's in office right now and he's attacking the market-based economy. Now, I said that I support. [00:13:08] Speaker 1: Again, I don't disagree with you at all. And I don't love those attacks, but I will say, just in fairness, and I wonder whether you think that they're the same or they're not the same. There have been people that have criticized Elizabeth Warren for years for individually attacking and going after and naming specific CEOs in America, specific companies in America over again and over again. President Biden famously didn't invite Elon Musk to the White House, probably caused him to actually support this president originally. And so the question is whether those are the same or they're different. [00:13:48] Hakeem Jeffries: It's interesting that we're talking about Joe Biden, no longer the president, Elizabeth Warren, who's a senator, as opposed to Donald Trump, the president of the United States of America, his administration, as well as complete control of government in Washington, D.C., the House and the Senate. That's the problem that we are confronting right now. And our challenge is to actually make sure that we are addressing the issues of significance to the American people. And the number one issue is the high cost of living that they failed to address. Final question. [00:14:20] Speaker 1: I think there are a lot of Republicans who actually agree that there are certain things this president does that they don't like, but they're unwilling to stand up and raise their hand and say something about it. Why do you think that is? [00:14:35] Hakeem Jeffries: I mean, we're dealing with a cult-like situation, unfortunately, in Washington, D.C., and we as Democrats will repeatedly make the point, look, we are a separate and co-equal branch of government. We don't work for Donald Trump. We don't work for Elon Musk. We don't work for J.D. Vance. We work for the American people. And, unfortunately, far too many of my Republican colleagues have not taken that approach. They are actively doing damage to the people they represent, including the largest attack on Medicaid in American history, and they're going to pay a price for that at the polls in November of next year. [00:15:17] Speaker 1: Leader, I want to thank you for joining us. Always great to talk to you. We love hearing your perspective and we appreciate it. Thank you. Thank you.