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Trump And Zelenskyy Hold Post-Meeting Press Conference; Americans Spending Despite Inflation; A Look Ahead At The Entertainment Industry In 2026. Aired 5-6p ET

Aired December 28, 2025 - 17:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: So, we want to see it ended absolutely. Yes.

UNKNOWN: You said at the top that you plan to speak again tomorrow. Is that correct?

TRUMP: I might. I mean, it depends on what happens tomorrow. If there's an additional something to add. Otherwise, there's no reason to. We're in the process. Jared and Steve are working very hard to get something done. And if there's something that comes up, I'd speak. But otherwise, I don't think there's any reason to. It could be.

UNKNOWN (voice-over): In your mind, sir, what are -- what are the thorniest issues still unresolved after the --

TRUMP: Well, I think the land you're talking about, some of that land has been taken. Some of that land is -- may be up for grabs but it may be taken over the next period of a number of months.

And are you better off making a deal now? Look, let me tell you, they have been very brave. They fought very hard and continue to fight very hard and do tremendous damage. But Russia would like to see it end and Ukraine would like to see it. And I think it is time to end.

And a lot of very brave people. A lot of people, they're dead right now, unfortunately, because I've said, and nobody has disputed it, that if the election weren't rigged and stolen, 2020, you wouldn't have had this war. It would have never happened. And it didn't happen for four years. Never was even thought to happen.

And I spoke with President Putin. I got along with him very well despite the Russia, Russia, Russia hoax, which was a total hoax. He used to say, what is going on over there? But it was a total hoax, as he knew and as I knew. But I spoke to him, and we'd talk about Ukraine. I've said it before, it was the apple of his eye, but he wasn't going to do anything about it. He didn't do anything about it until I was gone.

And then a lot of really bad statements were made by people, by a lot of people, I guess, but by a certain president that we had who was a disaster. Yes.

UNKNOWN (voice-over): Mr. President, do you anticipate going to Ukraine if you can get to an agreement? And I know you said earlier -- TRUMP: I have no problem with doing it. You know, I have no problem with doing it. I would -- don't anticipate it. We'd like to get the deal done and not necessarily have to go. I've offered to go and speak to their parliament. And, you know, if that would help. I don't know if that would help. I think it would probably help. But I don't even know if that's --

VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE: You're welcome.

TRUMP: Yeah. I know. I know. I think --

ZELENSKYY: Always.

TRUMP: So, I'm not sure that it would be really necessary. But if it would help save 25,000 lives a month or whatever it may be, I would certainly be willing to do that. Yeah, please.

UNKNOWN (voice-over): Mr. President --

TRUMP: Behind you.

UNKNOWN (voice-over): Thank you, Mr. President --

TRUMP: Are you -- where are you from?

UNKNOWN (voice-over): From Ukraine.

TRUMP: Good. I had a feeling.

UNKNOWN (voice-over): Public broadcaster.

TRUMP: Good.

UNKNOWN (voice-over): And how about the Zaporizhzhia nuclear plant? Have you discussed these questions?

TRUMP: On what?

UNKNOWN (voice-over): The Zaporizhzhia nuclear plant.

TRUMP: Yeah, we discussed that at length today. As you know, it's in pretty good shape. It can start up immediately, almost immediately. And it's one of the things I discussed with President Putin. And they were talking about the nuclear plant. That's probably the biggest in the world, just about the biggest anywhere in the world. Can you believe that?

And President Putin is actually working with Ukraine on getting it open. He has been very good in that sense. He wants to see that open. And he hasn't hit it with missiles, hasn't hit it with anything. It's a big danger to do that for everybody. But they're working together to try and get it out. It can -- it can open very quickly. It's in pretty good shape.

And the people there have been there for years. The people there running it. You know, they have 5,000 people in that plant. Can you believe it? I learned that today. Five thousand people.

It's the biggest plant of its kind in the world. And they're working together to get it open. They could maybe get it open quickly. That's a big step when he's not bombing that plant. That's a big step.

UNKNOWN (voice-over): Mr. President, in the readout from the -- from Moscow, they talked about the creation of some working groups.

TRUMP: Yes.

UNKNOWN (voice-over): Can you tell us about what those working groups would entail?

TRUMP: Sure.

UNKNOWN (voice-over): And, also, if you wouldn't mind, what -- what is the message that you will give to Putin when you speak to him after your meeting?

TRUMP: So, the working group is going to be composed of Steve -- Steve Witkoff, Jared Kushner, General (INAUDIBLE), Marco Rubio, and a few other people that were going to be putting on to it. I think Pete -- Pete Hegseth should be in that working group. He knows the territory very well. He has been fantastic at what he's doing. And they may add one or two people.

And likewise, Ukraine is going to have some very good people, that were at lunch today, that enjoyed the lunch today a lot. More than they thought, right? But do you want to say who may be on your working group?

ZELENSKYY: We -- now -- as I said, that we work with Steve and Jared. We worked and worked our (INAUDIBLE) and also Deputy Minister

(INAUDIBLE) and also General Hnatov (ph).

[17:05:02]

And they will continue to work in this group. And, of course, if we will go further, and I hope that really -- we will have decisions in January, as I said, about all these documents, six documents. And, of course, we will continue to work on this so they know what to do. Yes.

TRUMP: And that working group, by the way, importantly, will also then be working with Russia. OK? Because to work with ourselves doesn't really solve much of a problem. So, they'll be working with Russia. Yeah, please.

UNKNOWN: Mr. President, you said this morning you weren't a deadline guy. How long do you think it'll take to get this last little bit, as you say, finished? What are we talking --

TRUMP: So, if it went really well, you know, maybe a few weeks, and if it went poorly longer, and if it went really poorly, it's not going to happen. That would be shame. There's that chance also. You know, it's possible it doesn't happen. But, you know, in a few weeks, we will know one way or the other, I think. But if it went -- if it went really well.

But it could also go poorly. I mean, you know, we could have something where one item that you're not thinking about is a big item, and breaks it up. Look, it has been a very difficult negotiation, very detailed. It's funny, I settled eight wars. Some were going on for 35 years. And we got them settled in a couple of days, some of them. One was going on for 37 years. I settled in on one day. But this is a very complex one.

UNKNOWN (voice-over): (INAUDIBLE) what they --

TRUMP: I think we'll get it done. I don't want to say when, but I think we're going to get it done. Yes, ma'am.

UNKNOWN (voice-over): Mr. President, you in the past has suggested a bilateral meeting between both President Putin and Zelenskyy.

TRUMP: Right.

UNKNOWN (voice-over): Is it something that is also on the docket?

TRUMP: I see that happening. Sure. At the right time. I saw a very interesting President Putin today. I mean, he -- he wants to see it happen. He wants to see it. He told me very strongly. I believe him. Don't forget, we went through the Russia, Russia, Russia hoax together. And he'd call me, I'd call him. I said, can you believe the stuff that they're making up? And it turned out we were right. They made it all up.

And despite that, we didn't get into wars, we didn't get into problems, but we weren't able to trade very much or any of that, which was a shame because, you know, lot of success could have been had by trading with Russia. They have great land, great minerals and other things. And we have things that they want very badly.

But the Russia, Russia, Russia hoax, which was a terrible made-up fictional thing by crooked Hillary and by Adam shifty Schiff and bad people, sick people, they made it up. It was all a made-up hoax. But it kept us really from dealing with Russia. It kept Russia dealing -- you know, from dealing with us.

So -- but -- but despite that, we got along. And I know -- I think we're going to get there. I know -- I know him very well. I think we're going to get there.

UNKNOWN (voice-over): Did you discuss any time, location, meeting place?

TRUMP: Yes. We're discussing a lot of things. You know, we -- look, I was on the phone with him for almost -- I guess two and a half hours. They're just telling me now. It's a long time. We discussed a lot of things. We didn't talk about the weather. We weren't talking about how -- what a beautiful day it is in Palm Beach, Florida. Yes.

UNKNOWN (voice-over): President Zelenskyy mentioned maybe a meeting with European leaders back in Washington. Would that be in the next few weeks?

TRUMP: Well, Washington or someplace, yes. These leaders that I just read, these are great people. You know, they've spent a lot of money on helping Ukraine. And look, they're doing it for themselves also, meaning their country, because Ukraine is very important country for them in particular.

For us? It's very important. To me, it's the lives. You know, we're thousands and thousands of miles. We're protected by a thing called the Atlantic Ocean and lots of other places, to be honest. And they're not -- you know, they're right there. But we're working together with them as we should be. But I'm doing it to save lives.

You know, we're not spending any money. Biden gave $350 billion away. And the president was nice enough to give us a contract to take out rare earth and things. So, we'll see how that all works out. We have a contract. But --but we -- we appreciated that. It was very good. But -- but we'll see how that works out.

But if you think about it, we're going to have -- I really believe we're probably, Mr. President, closer than -- by far closer than ever before with both parties. We had, sometimes, when he was close and President Putin wasn't. Then we'd have President Putin was close and he wasn't. You saw that in the White House. But -- but I think they both want to see it happen.

UNKNOWN (voice-over): Mr. President --

UNKNOWN (voice-over): Mr. President, you said that, and you've said multiple times, that you want to stop the killing and nearly a hundred American citizens died in Ukraine on the battlefield.

TRUMP: Yes.

UNKNOWN (voice-over): What's your message to their families whose loved ones died fighting?

[17:10:00]

TRUMP: Well, look, I mean, the message is so obvious. It's -- what a shame. They died in a country, foreign country. And some are celebrated people. They're very celebrated. But so sad that a thing like that would happen. Yes, ma'am.

UNKNOWN (voice-over): President Trump, obviously, security is a major issue for the Ukrainians.

TRUMP: Right.

UNKNOWN (voice-over): Did you offer any promises, any assurances today?

TRUMP: No, I didn't. We want to work with Europe. And Europe is going to take over a big part of it, as you can imagine. You know, they're right there. But we're going to help Europe 100 percent like they'd help us. Yes, ma'am. You want to say something? UNKNOWN (voice-over): Yes. I was just going to ask, when your conversation --

TRUMP: Who you with?

UNKNOWN (voice-over): Andrea Shalal with Reuters.

TRUMP: That's what I thought.

UNKNOWN (voice-over): Yes. So, in your conversation with President Putin, did you discuss what responsibility Russia will have for any kind of reconstruction of Ukraine --

TRUMP: I did.

UNKNOWN (voice-over): -- post an agreement?

TRUMP: I did. They're going to be helping. Russia is going to be helping. Russia wants to see Ukraine succeed. Once -- it sounds a little straight, but I was explaining to the president, President Putin was very generous in his feeling toward Ukraine succeeding, including supplying energy, electricity, and other things at very low prices. So, a lot of -- a lot of good things came out of that call today. But they were in the works for two weeks with Steve and with Jared and Marco and everybody.

UNKNOWN (voice-over): Did Russia agree, did Putin agree to a ceasefire to allow a referendum to take place?

TRUMP: Not a ceasefire. And that's one of the points that we're working on right now. No, not a ceasefire. He feels that -- look, you know, they're fighting. And to stop -- and then if they have to start again, which is a possibility, he doesn't want to be in that position. I understand that position. The president feels strongly about that or something.

But I think we're finding ways that we can get around that. But I understand President Putin from that standpoint. You know, you have to understand the other side. And, you know, I'm on the side of peace. I'm on the side of stopping the war. So -- but I think that's a -- that's the problem that's going to get solved.

UNKNOWN (voice-over): Would people who live outside of Ukraine, who fled during the war, be allowed to participate in the referendum?

ZELENSKYY: What do you mean people who left?

TRUMP: The people that left.

UNKNOWN (voice-over): The refugees who fled to Poland --

ZELENSKYY: We speak about the people who are abroad, who are not on the territory of Ukraine. You mean that in Poland, in Germany. We have millions of people. Yes, they have a referendum in the same of elections, in the same way how people come and vote. They have rights for this. Of course, they have to come. That's why if we will come to referendum, yes, if we will come to such decision, people need infrastructure for this. And it's not simple. And that's why we spoke about it. It can't be in one day, very quickly. It's difficult because we need infrastructure. When you have millions of people, you have to build it in Europe, mostly in Europe for today.

UNKNOWN (voice-over): President Trump, I know you've sounded an optimistic note here, but what happens in a few weeks if things sputter? What are you prepared to do?

TRUMP: They keep fighting and they keep dying. No good. But if things don't happen, they keep fighting and they keep dying. And we don't want that to happen. He doesn't want it to happen. President Putin doesn't want it to happen either. OK? Thank you very much, everybody.

ZELENSKYY: Thank you.

TRUMP: Appreciate it. Thank you.

UNKNOWN (voice-over): Thank you, sir.

JESSICA DEAN, CNN CONGRESSIONAL CORRESPONDENT: All right, you're watching President Donald Trump and Vladimir Zelenskyy there after their hours-long meeting today, which included a call with European leaders as they try to get to a ceasefire and an agreement to end Russia's war on Ukraine.

Again, just making sure they're finished saying everything they need to say. The president there saying that a lot of progress has been made in his view. He says it's a terrific meeting and that maybe they're very close. Still, some thorny issues remain, according to the president and to Vladimir Zelenskyy. Chief among them, land, what's going to happen to that East Donbass region.

We were told by Vladimir Zelenskyy that he believes the security guarantees are close to 95 percent there, something that the president said he didn't want to put percentages on, but that he would say about 95 percent there.

We are going to break this all down with a team of experts and our White House reporter when we come back. We're going take a quick break. We'll be right back.

(COMMERCIAL BREAK)

[17:15:00]

(COMMERCIAL BREAK)

DEAN: And welcome back. Tonight, we are following this breaking news as President Trump and Ukrainian President Volodymyr Zelenskyy just holding a joint press conference just a few moments ago. The two men have been meeting for much of the day in Florida. They've been talking about bringing an end to the war in Ukraine. They also had a conversation with EU leaders. Trump is set to speak with Russian President Vladimir Putin after today's meeting. The two leaders spoke earlier today as well.

Meanwhile, Russia did continue its attacks on Ukraine today despite these ongoing negotiations. Friday night into Saturday, Moscow carrying out its longest sustained attack this year on Kyiv and its surrounding area. Zelenskyy saying that Russia targeted energy and civilian infrastructure, leaving more than 40 percent of Kyiv's residential buildings without heat as the city experiences freezing temperatures.

We are covering this from all angles. Joining us now, CNN senior White House reporter Kevin Liptak and also CNN senior international correspondent Fred Pleitgen.

Kevin, let's start first with you. You are there in Florida, where Zelenskyy and Trump met for many hours today. And we just heard from both of them. What stood out to you and -- and where do these negotiations stand as of now?

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yes, and I think when you hear the president come out and say that the meeting was terrific, that he feels that they're closer than they ever have been previously to try and advance a peace agreement, certainly sounding quite an optimistic note.

[17:20:01]

But, at the same time, you know, neither of these men announced any significant breakthrough as a part of these talks. And both of them, I think, did go to some lengths to emphasize how complicated these discussions are, how complex the issues that they're trying to work out are.

As President Trump put it, there are one or two thorny issues that remain in this discussion that I think led him not necessarily to proclaim any kind of victory. He says that maybe in a few weeks, he will know whether this is successful or not, but adding the caveat that there could be some unexpected issue that is lingering out there that could end up derailing this entire thing.

And so, you know, oftentimes, when we listen to President Trump, he is so sort of hyperbolic about the state of this thing. He was not that -- in these remarks today, he sounded very realistic about where perhaps this was all heading, acknowledging that this could all fall after rails at some point while still saying that he thinks they're making some very, very significant progress.

He was asked about the two thorny issues, I think, that he was referencing there. One, of course, is the land concession and the fate of the eastern Donbas region which Russia wants Ukraine to give up entirely. The president says that that was not resolved. That remains one of those sticky issues.

He actually offered to go to Ukraine to speak to the parliament there if Zelenskyy thought that that would be helpful in getting that across the finish line. He also talked about the fate of Zaporizhzhia nuclear power plant, said that Russia was somehow helping to maintain that, but also acknowledged that that was an outstanding issue that so far has not been resolved, Jessica.

DEAN: Yes. All right. A lot of lines coming out from that, Kevin. I want to turn to Fred Pleitgen now. Fred, we know that the two men also spoke with leaders from Europe. How does Europe view this deal that Zelenskyy is bringing to the table and what happened today?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, certainly, I think the European leaders will be very optimistic about what happened today. I think one of the things that we're feeling here in Europe or that leaders are feeling here in Europe is that they're much more part of the negotiations than they had been in the past.

One of the things that was a key moment here for the Europeans was about two weeks ago when Steve Witkoff, the main negotiator for the Trump administration, came here with Jared Kushner, spoke to the Ukrainians here in Berlin, but then also to the European leaders as well. That certainly did create a lot of trust within Europe that they were actually part of the negotiating process and an important part of the negotiating process.

And one of the things that President Trump pointed out just now in that press conference with Ukrainian leader Volodymyr Zelenskyy was that the Europeans were going to be or are going to be, if it does happen, a big part of those security guarantees that the Ukrainians are looking for. He said the United States is also going to help, but that the Europeans are also going to have a big role in that as well.

And, of course, for the Ukrainians, those security guarantees are key, especially with the way that things appear to be shaping up as far as a possible deal could be concerned, where the Ukrainians seem closer and closer to coming to terms with the fact that they might have to give up territory to the Russians, including what the U.S. calls the free economic zone and that part of the Donetsk region that is still controlled by Ukraine.

But they want rock solid security guarantees in return. The U.S. calls them platinum security guarantees, that they are offering. But President Trump seemed to indicate that the Europeans are supposed to play a big role in that as well.

One of the other things that also stood out is that the Ukrainians are saying, as part of any deal, there most probably is going to have to be a referendum in Ukraine, as far as the territories are concerned, but also possibly on other questions.

And the Ukrainians have said they really need a ceasefire to make that happen, to be able to prepare for a referendum, simply to get the voting, all the machinery going. But the Russians say they don't want a ceasefire. President Trump saying he understands Russia's point of view and, apparently, ways are being worked out right now to try and make it happen anyway. Both men, of course, saying that right now, they are -- feel that they're closer to making a deal happen than ever before. But, of course, we know that important is also going to be what the Russians are going to say to all of this.

You alluded to the fact that President Trump had a phone call with Vladimir Putin, the leader of Russia, earlier today. The Russians then, after that phone call, saying that both sides see eye to eye as far as a temporary ceasefire is concerned. The Russians saying that's definitely something that they don't want.

And, of course, the Russians now very much looking forward to when President Trump will call Vladimir Putin again to discuss what was spoken with Volodymyr Zelenskyy at that -- at that meeting that happened today. Definitely a big thing. I've been monitoring Russian state media as well. So, this is definitely something that obviously the Russians are to be looking at very closely, Jessica.

DEAN: Yes. Certainly, the Putin of all of this, right? The big question.

[17:25:00]

Fred Pleitgen, Kevin Liptak, our thanks to both of you. A former U.S. ambassador to Ukraine joins us next after our break.

(COMMERCIAL BREAK)

DEAN: And again, if you're just joining us, our breaking news as President Trump and Ukrainian President Volodymyr Zelenskyy just coming out of their multi-hour meeting.

Former U.S. ambassador to Ukraine, John Herbst, is joining us now. Mr. Ambassador, thanks for being here with us. We just heard from them speaking. As our reporter, Kevin Liptak, was saying, the president was pretty, you know, on point and in the sense that he was not being hyperbolic here.

[17:29:58]

In Kevin's mind, he was being pretty clear-eyed about the chances that this could fall off, could go off the rails or it could succeed. How did you take what you heard from those two men?

JOHN HERBST, FORMER U.S. AMBASSADOR TO UKRAINE: Well, certainly, President Trump was upbeat and that's a positive sign. It sounds like he and Zelenskyy had a meeting of the minds on most, if not every single issue, on the table, and that's positive, but only part of the issue, part of the problem.

DEAN: Right. And so, what stuck out to you when you were watching them discuss what they had talked about today?

HERBST: Well, again, they seem to have -- well, A, the meeting seems to have been well prepared by the negotiators on both sides. So, B, that enabled the two leaders to solidify the agreement reached by the negotiators, and that's excellent.

But, you know, it's worth remembering that Trump's goal of a durable peace, in pursuit of that, he has offered six or seven ceasefires, every one of which Zelenskyy, since the middle of March, accepted, and every one of which Putin has not been willing to accept. The key question, is Putin now ready to accept?

DEAN: Right. And I think you're exactly right, what is the Putin reaction to all of this? We know that the president spoke with him, plans to speak with him again. How do you see Putin reacting to what we saw today?

HERBST: If -- in order for -- Zelenskyy's idea about dealing with the very difficult issue of western Donbass territory, which Moscow has been unable to conquer because it's deeply fortified, I can't imagine the Russians agreeing to Zelenskyy's proposal that OK, Ukrainian forces would draw back from there, but Russian forces need to draw back equally, and there need to be some form of peacekeepers in the middle to make sure Russia does not move forward.

It's hard for me to imagine Putin agreeing to that because Putin doesn't want peace. Putin wants to continue the war to take greater control of Ukraine. And it's hard to imagine if the security guarantees are rock solid, the way Zelenskyy has suggested and Trump has also suggested. It's hard to imagine Putin accepting that. He does not want -- he does not want to end the fighting.

DEAN: I feel like this is a conversation we have many times, that we have had many times over the course of many years with many experts like yourself which is, what can the president do that he's currently not doing and the U.S. do that it's currently not doing to push Putin to accept some sort of ceasefire?

HERBST: President Trump has been slow to put the necessary pressure on Putin. But he did take a very strong step in mid to late October when he put sanctions on Rosneft and Lukoil, the two principal Russian oil firms.

You need more of that because Putin has correctly relied on weakness of western leadership to support Ukraine, and he thinks he's able to manipulate President Trump, which is why Putin in their phone calls treats the president with tremendous respect, even deference, even as he and his team say no to all the proposals Trump has put in play.

So, I guess the -- I guess the same approach was tried today by Putin. And until the United States presents to Russia the actual proposals that we discussed today with Zelenskyy, we'll see. Until then, President Trump can think Putin will say yes. But it's doubtful that he will because he believes he can continue to pursue the war without major pressure coming from Washington.

DEAN: Zelenskyy said just a little bit ago, he believes they're quite close on security guarantees. He said 95 percent there. What does Zelenskyy need to get formalized from the U.S. on this front? What's he -- what's he, you know, still lacking? And do you think that's a red line for Russia? HERBST: Well, we know that the assurances offered when Ukraine agreed to denuclearize and the Budapest memorandum from 1994 were worthless when Russia began the war in 2014, and then the big invasion in 2022. So, he wants a firm commitment for the United States at a minimum to back up the Europeans if the Russians start shooting at Europeans as they try to prevent Russia from renewing aggression.

And, you know, we've had reports on what the United States must do, but we don't know precisely. And there were senior American officials saying on background that this would involve ratification by the Senate, suggesting it would be a treaty-type obligation. If that's true, that's a very important commitment, and it's hard for me to imagine Putin accepting it.

DEAN: As far as the European leaders who pushed for this meeting, who Zelenskyy and Trump spoke to today, how do you think they're reacting to today?

HERBST: Well, I think they would be encouraged by the apparently very positive talks held between Zelenskyy and Trump. They are nervous that Putin has too much influence in Washington.

[17:35:00]

But I think that has been partly assuaged by today's good meeting. But we'll have to wait and see because what we've noticed, as Trump has sought a durable peace, which is a good objective, kind of wavers between understanding that Putin is the problem and then deciding not to act on that or deciding maybe Putin is not quite the problem, whereas Putin has rejected, again, every single proposal Trump has put on the table, whereas Zelenskyy has accepted every single proposal.

DEAN: All right, Ambassador John Herbst, thanks so much for your time. We appreciate it.

HERBST: My pleasure. Thank you, ma'am.

DEAN: Still to come, consumer spending still going strong this holiday season despite Americans' unhappiness with the economy. We're going to break down the numbers and what it could mean for maybe the midterm elections. Stay with us. You're in the "CNN Newsroom."

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[17:40:00]

(COMMERCIAL BREAK)

DEAN: Affordability has become a critical topic here in the U.S. both politically and economically despite persistent concerns about inflation. Bank of America CEO Brian Moynihan says household spending has remained reasonably solid.

(BEGIN VIDEO CLIP)

BRIAN MOYNIHAN, CEO, BANK OF AMERICA: Wages have grown, but inflation bothers people. Jobs are -- you know, the unemployment rate is very low, but it has been rising. So, there's a lot of discussion in there. At the end of the day, people are spending. They have good credit quality. They are employed. And we can see wages growing as people's paychecks come in at a 3 percent clip. So, it's pretty solid right now.

(END VIDEO CLIP)

DEAN: We're joined now by CNN global economic analyst Rana Foroohar. Rana, good to see you. Thanks for being here. Moynihan appearing pretty positive in that clip. Do you agree with how he's viewing all of this and how would you assess the state of the economy after this year of 2025?

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Yes, thanks, Jessica. You know, top line answer, yes, he's right. We do have still pretty low unemployment. People are still spending more than we thought they were going to be at this stage. But it depends on what group you're looking at. We have what I would call a K-shaped economy. The folks at the top are doing great.

And you have to remember, when you look at spending numbers, over half of consumer spending is done by the top 10 percent of the population that has the money. So, those folks, you know, that have assets, that have homes where prices are still rising, they're feeling pretty good. Folks at the bottom, not feeling so good. You've seen income stagnate. You know, you've seen Trump's big, beautiful bill cutting Medicaid benefits, SNAP benefits. So, it really depends on what part of the economy you're talking about and who you're talking about.

DEAN: Yes. And as we look ahead to 2026, the president says that he'll name the next chair of the Federal Reserve in the coming months. Current chair, Jerome Powell, term set to finish up in May. He has repeatedly challenged the Fed's independence. What are you tracking as we wait for this decision? And how might you think all of this might unfold?

FOROOHAR: Yes, I mean, the fact that Trump has challenged Fed independence is probably more than any other factor. The thing I hear from investors is, you know, hey, I'm really worried, because at the end of the day, you've got to have a sense that the Central Bank is independent from the White House, you've got to have a sense of the economy is being run on data and not politics.

That said, the president has made it pretty clear that Kevin Hassett is his -- is his favorite. I'd be very surprised if he named somebody else. And so, we're going to be in a kind of a watch and wait mode to see how Hassett, if he does become the new Fed chair, is looking at the data. Is he looking at it quantitatively? Is he -- is he taking a fair and even hand with things?

We do know that he is more dovish. He would like to cut rates. That's something that the president has also said that he would like to see. So, you know, this is -- this is definitely an appointment that is going to be seen as political if it rolls out in that way. And then we're going to have to see how investors respond to that. DEAN: Yes. The president also promising in the coming year what he has called the most aggressive housing reform plans in U.S. history. We have very little detail about what that might look like. We do know the administration has previously floated ideas like a 50-year mortgage plan. But this this issue of housing is a big one in this country, especially when you talk about affordability or as the president says, pricing. What -- give us some context around this issue and what might be within the president's control, the federal government's control?

FOROOHAR: Yes, it's a great question. You know, I remember years ago, Warren Buffett said to me, if housing is OK, the economy is OK. If housing is broken, you've got a problem in the economy. And I would have to say that at this point in our country, housing is broken.

You know, you've got the average age of homeowners rising dramatically because people simply cannot afford the price of homes when they're younger. They have really gone sky high, particularly in areas where the most jobs are. So, these are where young people -- young people want to end up. They can't afford homes. That constrains consumer spending. So, it's a big issue.

Unfortunately, there's not a silver bullet fix here. I don't love the idea of a 50-year mortgage, and I'll tell you why. Even though, sure, that may make it possible for someone to lower their immediate monthly payment, it stretches out that debt over time. And eventually, you're accruing more and more debt for the same asset. I think a 30-year mortgage is plenty. We do need to change the way we do zoning to make it possible to build faster.

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You know, we need to get rid of NIMBYism, the kind of not in my backyard. Hey, it's OK to build a wind farm somewhere else, but not near me, which constrains a lot of how housing gets done and how zoning happens.

We also still have supply chain issues and inflation in housing. Tariffs haven't helped there. You know, trade wars with Canada, which is a big exporter of lumber to the U.S., don't help.

So, there are things that the president could do. I would say that tariffs are, you know, one thing that is very much in his control. But there is a lot that needs to be done.

And the other thing about housing, you have to remember, it really varies. The problems vary depending on where you are. I'm sitting in New York, very different problems here than there would be in, say, Phoenix.

DEAN: Yes, that is so true. And that's a good thing to remember. And I think that also, too, is a big piece of why this is so complicated and nuanced. Rana, good to see you. Happy New Year to you. Thanks for being on.

FOROOHAR: Happy New Year. DEAN: Thanks. Still to come, big surprises and a lot of questions surrounding the entertainment industry in 2026. What we're learning about Taylor Swift's highly anticipated wedding, the future of CBS without Stephen Colbert, and much more. That's straight ahead.

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DEAN: Twenty twenty-six is shaping up to be a busy year in entertainment from big screen blockbusters to a love story worthy of a song. Maybe a whole album? I'd love a whole new album. Next year will include the much-anticipated wedding of Taylor Swift and Travis Kelce, while Swift recently left fans guessing about possibly teasing another album.

We are joined now by entertainment journalist Brian Balthazar. Brian, great to have you here with us. I don't have to say -- I think everybody knows this. Swift is certainly a mega force in the entertainment industry. What are you expecting from her next year? Obviously, her personal life is going to take center stage, but might we hear more music, too?

BRIAN BALTHAZAR, ENTERTAINMENT JOURNALIST: Well, I think there's a good chance of that. You know, she said that she's actually very tired from the Eras Tour. And who wouldn't be at 149 --

DEAN: Who wouldn't?

BALTHAZAR: -- performances in 51 countries, right? I mean, I'm tired from like, you know, the past year myself, so I can't even imagine it. So, you know, of course, the big question is, and many tabloids and gossip columnists have speculated, will she get married this year and when? Some have even gone so far as to speculate that June 13th is the date, 13 being a very important number.

But we do know that she's also very articulate about what information she lets out there. And I don't think she is a fool about, you know, how interested people are. I think she's going to keep it pretty guarded.

We do know, though, that she has two albums which she has to re- record. You know, she bought her masters and "Reputation" is still one that she has to re-record and release. And I think that would be an obvious way to do something that she could do right at home and stay close to her fiance. And I think that's probably what we'll see next. But, you know, I don't rule out any kind of surprise from Taylor Swift.

DEAN: I know. You're right, she is quite savvy. So, who's to say what 2026 might bring? I want to talk to you, too, about movies. There's a lot to expect next year. We've got blockbuster franchises, star- studded sequels. I'm thinking of like "The Devil Wears Prada 2," which is already getting a lot of attention. What are you most excited to see when it comes to movies next year?

BALTHAZAR: Well, it's really interesting. I want to give you a statistic that may alarm you. Out of the top 50 movies of 2025, 44 of them were either reboots, remakes, sequels, prequels or some reinterpretation of existing I.P.

DEAN: Crazy.

BALTHAZAR: Can you believe that?

DEAN: Yes.

BALTHAZAR: If you look at the list, you'll see that. But, you know, that's not a trend that's going away. Of course, you mentioned "The Devil Wears Prada 2," which comes out May 1st with, you know, Meryl Streep and Anne Hathaway and Emily Blunt. You can't not be a little bit excited about that. That has kind of become -- as much as it was successful initially, now, it has kind of become like a cult classic almost.

Then we have "The Odyssey" coming out on July 17th. This one, they actually released some pre-ticket sales a year in advance to some of the IMAX screenings and they sold out right away. This one has a huge -- this is a Christopher Nolan film. Cost, estimated $250 million to make. As you can see there, Matt Damon is in there, Anne Hathaway again, Zendaya, Charlize Theron. The list goes on. It's a star-studded cast. That's going to be a big one.

I'm interested in "Disclosure Day." This one is a Steven Spielberg film. And what I love about it is how much we don't know. And that it's actually an original concept. We have no idea what this movie is about. Emily Blunt is also in that one. It's a good year for Emily Blunt and Anne Hathaway.

And then also, going back to sequels, "Toy Story 5." You have to have something for the family. And I do love that franchise. That's what I welcome every time it comes back. So, I'm excited about that one as well.

But to just give you a sense of more of the sequels and things. We've got "Minions 3," Spiderman has another one coming out. "The Hunger Games" is back, "Jumanji 3," "Avengers: Doomsday," "Dune Messiah," "Practical Magic 2," "Resident Evil," "The Mandalorian & Grogu." All of those are from existing I.P., but they're all going be likely big box office successes.

DEAN: Yes, yes, yes. OK, a lot to come. There's also a lot of uncertainty in Hollywood. There's obviously the prospect of a Netflix deal to buy Warner Brothers. And I should disclose, Warner Brothers Discovery is, of course, the parent company of CNN, though CNN would not be a part of that Netflix deal specifically. But the deal has sent shockwaves, obviously, through the film industry. How could that change the movie business?

BALTHAZAR: I think it's going to change everything about how we watch things, where we watch things, and how much we pay to watch things should this go through. You know, it's interesting. We don't know yet. We know that they want the film business. We don't know what will happen of the cable networks, the food networks, the TLCs, the HDTVs. What will become of those because those will not be part of that deal. Will those be sold off? Will some of those survive?

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But we do know, you know, also that Netflix, we're not sure whether they're interested in film premieres as much as there are premieres on Netflix. And then Netflix will have a little stronghold on all this content and how much will they be able to charge for it? So, you know, this is going to take a while to go through, but it's really going to send shockwaves. The concern is valid and it is going to kind of change everything about the way we watch T.V. and movies.

DEAN: Yes. It will be interesting. And lastly, we are going to see the end of "The Late Show." "The Late Show with Stephen Colbert" will come to its end in May. CBS has called this a purely financial decision. But politics and late-night shows have clashed over the last year. CBS has new ownership. All of that being said, you know, there will be no more late show after this as well.

BALTHAZAR: Right. And, you know, it's interesting because we've also just heard that Jimmy Kimmel is going to end his ride in 2027. So, what will become of late-night television? We do know that the profit margins have gone down because they're not getting as much viewership and, therefore, they can't command the advertising rate that they once did.

And, you know, I have no doubt that there will probably be a home for Stephen Colbert somewhere, perhaps on a streaming platform. But typically, as of yet, we have not seen a talk format yet really, really break through on streaming in the way that you could compare it to the heyday of these shows and late night.

DEAN: Yes.

BALTHAZAR: So, it's really the end of an era in a true sense.

DEAN: It certainly is, and just how our habits are changing, how the industries are changing as well. Brian, thanks so much. Good to see you.

BALTHAZAR: Thank you. You, too.

DEAN: We'll be right back.

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