CNBC hosts Joe Kernen and Rick Santelli challenged Democratic criticism of the economy and specifically addressed Sen. Elizabeth Warren following the release of July inflation data and recent gross domestic product figures, as reported by The Gateway Pundit.
The discussion took place after federal data showed consumer prices increased at a slower annual rate in July than they had in June.
The Bureau of Labor Statistics reported that the Consumer Price Index rose 3.4 percent over the 12 months ending in July, down from 3.5 percent in June.
Core inflation, which excludes food and energy, increased 2.5 percent over the year.
Prices increased 0.1 percent on a seasonally adjusted basis in July. Shelter accounted for roughly two-thirds of the monthly increase, while energy prices declined 1.5 percent during the month.
Food prices increased 0.1 percent, with food-away-from-home prices rising 0.3 percent.
The July report came as policymakers continued to monitor inflation and consider the Federal Reserve’s next move.
Inflation remains above the Fed’s 2 percent target, although the July consumer-price figures showed some moderation from the previous month.
The latest GDP data also showed continued economic expansion.
The Bureau of Economic Analysis reported in its July 30 advance estimate that real GDP increased at an annual rate of 1.5 percent during the second quarter of 2026, following a 2.1 percent increase in the first quarter.
Consumer spending, investment and exports contributed to the second-quarter expansion, while lower government spending partly offset those gains.
Against that backdrop, Kernen discussed Democratic warnings about the economy and tariffs, including comments he attributed to Warren.
“The left and people that don’t like the president and don’t want things to work. And, you know, Senator Elizabeth Warren will come on and say, “Inflation’s out of control, and the economy is getting killed by what’s happening—by these tariffs.”
“This—3%, with the market at new highs—and, really, we haven’t seen inflation, you know, go back up to 3%. Maybe it will this week. Maybe we’ll see it. But none of these things—none of these horrible things—have happened, yet they still talk like they’re happening. It’s amazing.”
Santelli followed by questioning whether members of Congress should be relied upon for financial guidance.
“Well, the important—there’s an important lesson there: don’t pick a congressman to be your money manager. That’s what I would say. But, in the end, Congress has its own reasons to point out certain things. And the Democrats, of course, as you pointed out, really don’t want to see the current administration have some success. But there’s no doubt that this is some success. We’re seeing more horsepower. We’re seeing better equities. Inflation— inflation really hasn’t changed much in the last year or so.”
The economic data present a mixed picture rather than a single measure of economic performance. GDP continued to grow in the second quarter, but its 1.5 percent annualized pace was slower than the 2.1 percent growth recorded in the first quarter.
The BEA also reported that the price index for gross domestic purchases increased 5.7 percent in the second quarter, while the personal consumption expenditures price index increased 5.1 percent.
Inflation also remains higher than the Federal Reserve’s long-term objective.
The Federal Reserve’s July Monetary Policy Report said inflation measures had moved higher in recent months and noted that the personal consumption expenditures price index had risen 4.1 percent over the 12 months ending in May, with core PCE inflation at 3.4 percent.
The July CPI report nevertheless represented an improvement from June on the headline measure.
The 3.4 percent annual increase was the latest reading available as of Aug. 17, 2026, and followed June’s 3.5 percent increase. The next major GDP release, the second estimate for the second quarter, was scheduled for Aug. 26.
The latest numbers have consequently become part of the broader political argument over the administration’s economic policies, tariffs and inflation.
Democrats have continued to raise concerns about prices and economic policy, while Kernen and Santelli pointed to the continued expansion and the moderation in headline consumer inflation as evidence that some of the most severe forecasts have not materialized.
The data leave policymakers with a familiar challenge: inflation remains above the Federal Reserve’s target, but the latest consumer-price report showed a slower annual increase while the economy continued to expand.
