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Soon: Trump Co-Defendant Harrison Floyd Appears Before Judge; Final Trump Co-Defendant Stephen Lee Surrenders In GA; Powell: More Rate Hikes Are Still On The Table. Aired 11-11:30a ET

Aired August 25, 2023 - 11:00   ET

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

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[11:01:42]

KATE BOLDUAN, CNN ANCHOR: It's the final countdown not just to the start of your and my weekend, but also for Donald Trump's last remaining co-defendant to surrender in Fulton County ahead of the DA's deadline, 59 minutes to go and counting.

SARA SIDNER, CNN ANCHOR: From historic first to profiting from prosecution. The historic mug shot that's going on, mugs, buttons and t-shirts and the like, now turning serious accusations into political fundraising within hours of Donald Trump's arrest.

JOHN BERMAN, CNN ANCHOR: And now there is a trial date just eight weeks away. The judge sets a trial date for one of Donald Trump's co- defendants in Georgia just 59 days from now on T.V. This could have huge implications for the rest of the defendants in this case. I'm John Berman with Sara Sidner and Kate Bolduan. And this is CNN News Central.

BOLDUAN: And then there was one. With the noon deadline very soon upon us, we are watching for the final co-defendant of Donald Trump to surrender at the Fulton County Jail. Just last hour, Trevian Kutti turned herself in. She's charged with intimidating an election worker. CNN's Nick Valencia is live outside the jail for us joining us once again. Nick, what do we know about Kutti and also the final co- defendant yet to turn themselves in?

NICK VALENCIA, CNN CORRESPONDENT: Well, Trevian Kutti previously has represented as a publicist artists like R. Kelly, Kanye West, and she has just surrendered to the Fulton County Jail here ahead of that noon deadline for her role in this election subversion case. She's alleged to have intimidated Fulton County election workers. Prosecutors say that she drove down from her Chicago area home to intimidate Ruby Freeman, a Fulton County election worker, calling her a loose end that the party needed to tidy up.

Just a short time ago that we understand Kutti surrendered to authorities. And had she missed that noon deadline, she really would have complicated what has so far been a relatively smooth process for these co-defendants who have surrendered prior to that deadline. Most co-defendants, other than the President, who spent about 20 minutes inside, has spent about an hour to an hour and 15 minutes. We understand Harrison Floyd, who we'll hear report on in a short time. He is believed to still be in custody, but he did not work out a bond agreement.

As it stands right now, Pastor Stephen Lee is the only co-defendant in this sprawling investigation that has not turned himself in. And if he misses this noon deadline, he runs the risk of putting himself in the criminal justice system instead of just about an hour for days. At best, people who turn themselves into Fulton County usually take about 48 hours. It could take sometimes days. We don't know exactly the whereabouts of Stephen Lee as it stands right now, but he is the only and last remaining co-defendant of the 19 that has yet to turn themselves in. And the clock is ticking. Kate?

BOLDUAN: Kate, Nick Valencia. Thank you for being there, Nick. John?

BERMAN: All right, happening very soon, potentially right now, even inside the Fulton County Court. Nick Valencia just referred to it. One of the co-defendants of Donald Trump will appear before Fulton County Judge Scott McAfee. This is the first appearance to happen before the judge, although we've seen the surrenders of so many of the conspirators, accused conspirators so far. CNN's Zachary Cohen is live outside the court. Zach, explain to us it's confusing because there are different things going on all at once. Here what's happening before the judge with whom?

[11:05:18]

ZACHARY COHEN, NATIONAL SECURITY REPORTER: So, as Nick referenced, Harrison Floyd, who is the leader of an organization called the Black Voices for Trump, he was one of the rare cases yesterday where his surrender did not go very smoothly. And that was because he failed to negotiate a bond agreement before turning himself over to authorities at the Fulton County Jail.

And as a result, he spent the time since then in custody. And he's just now about to make his first initial appearance in front of the judge overseeing this election subversion case here in Georgia, where they're going to work out the terms of a potential bond or determine his fate going forward. You know, Harrison Floyd is an interesting character in all this. He is one of those charged with crimes related to intimidating election workers.

He's also facing a charge in a separate matter for allegedly assaulting an FBI agent who was trying to serve him a grand jury subpoena. So we're going to see Harrison Floyd make his first initial appearance today in court and we're going to learn more about his fate after that.

Now, for some other defendants though, the court, you know, court activity is already getting on the books here. Ken Chesebro, who was one of the lawyers working with Donald Trump as he was trying to overturn the 2020 election, a judge set a trial date for Chesebro, October 23rd, 2023. So that's the first set court trial date that we know of, set by a judge for a defendant in this case. And it's interesting because the judge made very clear yesterday that this only applies to Chesebro. And Fani Willis has really made clear she wants to try all of these defendants together. So it'll be interesting to see how this maybe impacts her ability to do that going forward. And, you know, there's other defendants like Mark Meadows, the former White House chief of staff who's still trying to get this case moved to federal court.

He'll have a hearing on Monday where he'll present his case for why he thinks that it should be moved to federal court. It'll center around the fact that he argues he was a government official at the time and therefore he was acting in a formal government, you know, capacity in his work for Donald Trump, where Fani Willis argues you can't try to overturn an election that doesn't fall within the scope of your responsibilities as a government official.

BERMAN: Yes look a lot going, you know, hearings next week. You have a trial date for one of the co-defendants in October, and you have one of the co-defendants appearing for a judge potentially right now. Zachary Cohen, thank you very much for all of that. Kate?

BOLDUAN: We also have this, also just in to CNN that Stephen Lee has turned himself in to surrender at the Fulton County Jail. With that, with him surrendering just now, we have confirmed that now means that all of the co-defendants, obviously, including Donald Trump, have turned themselves in, have been processed, are getting their mug shots. And so now we have all 19 people booked and processed, as they've all been charged in taking part in this criminal enterprise in Georgia to try to overturn the 2020 election results.

And with this phase of this process now over, it now kicks into the next phase, as John was just talking about with Zachary Cohen. Joining us right now for more on this is a former federal prosecutor, Tim Heaphy. He was the chief investigative counsel for the January 6th Congressional Committee. Tim, thank you for coming in. So we now have this now officially, this part of the process here has wrapped up.

Stephen Lee has surrendered. He is now booked and processed, the final defendant in the group. But I want to ask you about now, the process looking forward, as Zach Cohen and John Berman were just talking about. You have Kenneth Chesebro. He has now requested and gotten what -- he asked for a speedy trial, as is written into law for defendants in Georgia, and he's gotten a court date of October 23rd. That's eight weeks away, I think is what we have. What could that mean for all of the other defendants, including Donald Trump? It seems like it could have a huge impact.

TIM HEAPHY, FORMER LEAD INVESTIGATOR, JANUARY 6TH COMMITTEE: Yes, it certainly could have a huge impact. I think this means that initially, all of these trials or the single trial of all defendants will be scheduled early, and then some defendants will move to postpone that trial and or sever their cases from Chesebro, right? This could result in essentially a truncated trial focused on Chesebro or others who request a speedy trial very shortly and another trial later.

I don't frankly know the answer to the legal question as to whether the sort of joinder of defendants will take precedence over an individual defendant's speedy trial, right. It might be that Chesebro can't get a speedy trial because he's been appropriately joined with defendants who want a postponed trial. That's the kind of thing that a judge will have to sort of decipher among the competing interests of these appropriately joined defendants.

[11:10:02]

BOLDUAN: Yes. So on that exact point, you also have another one of the co-defendants, John Eastman. He's requesting to have his case severed from the rest. But let me also then play for you what his attorney said last night on CNN about trial timing and what they'd be looking for. Listen to this, Tim.

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CHARLES BURNHAM, ATTORNEY FOR JOHN EASTMAN: As we stand here today, we're not prepared to make that, and it's certainly something we might, you know, think through as a sort of thought experiment, but I think we'd be inclined not to do anything similar to what Mr. Chesebro has done recently.

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BOLDUAN: And you wonder why? Because clearly there's a lot of counsel now getting involved. And what's the strategy in all of these moves?

HEAPHY: Yes, look, I think each defendant, particularly the ones who are lower down the chain of culpability, would prefer to be severed. It's better for Ken Chesebro to be sitting separate from President Trump and the other leaders of the conspiracy. So I think tactically, I understand why certain defendants want to peel off from the group and force the government quickly to preview their evidence.

I think Chesbro likely thinks that if he goes first, the government will be reluctant potentially to show all of its cards in that trial because of the looming, much more significant trial of the former President and others. So, tactically, I understand why a defendant or two would want to go fast, particularly if it results in a severance which they likely think is favorable for them.

BOLDUAN: Yes. I want to ask you about Mark Meadows here. You and I have talked about him in the past and what you did and didn't get from Mark Meadows in your investigation for the January 6th Congressional Committee. He's having a hearing on Monday as he's trying to get his Georgia case moved out of state court into federal court.

And in the request to get it moved, his attorney put it this way, basically laying out what he says is that he did not act illegally in his actions, stripped of the state's gloss the underlying facts, entailed duties, with the core functions of a chiefs of staff to the President of the United States, arranging or attending Oval Office meetings, contacting state officials on the President's behalf, visiting a state government building and setting up a phone call for the President with a state official. Only by virtue of his Chief of Staff role was Mr. Meadows involved in the conduct charged. But another way, his federal position was a but for cause of his alleged involvement making the case he's done nothing illegal. In your investigation, is that what you found?

HEAPHY: No. Our investigation found that Mark Meadows went well beyond the duties of the White House chief of staff and engaged in an intentionally criminal conspiracy to interfere with a state election. Keep in mind, Kate, that elections are state functions. And when he is on the phone with President Trump talking to Brad Raffensperger, that is the federal official trying to influence a classically legally state proceeding.

The DA's response to this motion will be that the acts alleged against Mr. Meadows are not within the scope of his employment as White House chief of staff, but are rather independent criminal actions. It's the very same argument that he made with respect to executive privilege. And a lot of defendants say, hey, we don't have to provide information to the Select Committee because it's covered by an executive privilege.

Our response was always, this is beyond the scope of your official responsibility. It was campaign activity, it was personal. And therefore executive privilege doesn't apply. That's the same analysis that the federal judge will have to apply. Was this core conduct within the scope of the appropriate function of the White House chief of staff?

BOLDUAN: Yes. Your perspective and authority and knowledge on at least a big portion of the evidence that's going to be -- they're going to face in both the state case and the Special Counsel's case on 2020 is just it's so essential. Thank you so much, Tim, for coming in.

HEAPHY: Thanks for having me, Kate.

BOLDUAN: Sara?

SIDNER: One person not talking publicly about Donald Trump's arrest, President Biden. He's staying silent, but the Biden campaign is not. So how has the King responded? We'll have a look ahead.

[11:14:08]

Also, a huge change in the number of missing in Maui. Plus, new fallout over what may have caused the deadly wildfires. Maui's government putting the blame squarely on the island's electric company in a new lawsuit. That's next on CNN News Central.

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SIDNER: All right, could we still see an interest rate hike? Federal Reserve Chairman Jerome Powell just made clear that's still an option on the table. Inflation has slowed, though significantly in recent months. But Powell says the Fed won't stop taking action until it falls even further. Take a listen.

(BEGIN VIDEO CLIP) JEROME POWELL, FEDERAL RESERVE CHAIRMAN: It is the Fed's job to bring inflation down to our 2 percent goal, and we will do so. Although inflation has moved down from its peak, a welcome development, it remains too high. We are prepared to raise rates further if appropriate.

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SIDNER: All right, CNN's business anchor Richard Quest is joining us with his presence today. I'm so happy to see you.

RICHARD QUEST, CNN BUSINESS EDITOR AT LARGE: So listening to what Powell says, you really are truly reading the ruins of what he's talking about, because he's -- you can take what he says in any different direction. The analogy I want to give you is this. At the moment, the U.S. economy like a patient receiving cancer treatment.

[11:20:03]

SIDNER: That's dire.

QUEST: No, no, no, no. The medicine, the chemotherapy has been delivered by the Fed over the last 18 months. And the tumors and the cancers are getting smaller and they are starting to show remission. But now Powell is at the -- Doctor Powell is at the position of saying, do we stop and let the chemo continue to work its my own miracle or do we give another dose? Do we take the insurance policy of one more dose? And I think the answer here is he's going to do more.

SIDNER: You do?

QUEST: Yes, because he continually says it's the Fed's policy to bring inflation down to our 2 percent goal. Now whether he does it this month or in two months-time or whatever, higher for longer is the mantra. But I think you're going to see perhaps one or two more.

SIDNER: OK. So just to break it down for what this means to regular old people like me, you are saying, look, prices are still too high, but borrowing is about to get higher, right? So for housing, for -- I mean this could have an impact on the economy.

QUEST: It will have. It's meant to. That's the point.

SIDNER: I know, but in a bad way --

QUEST: That is exactly --

SIDNER: One in a bad way for workers isn't that, right?

QUEST: Well, yes and no. I mean, he would say, as he does say right at the end of his speech, if I can find it.

SIDNER: I love that you have a whole thing.

QUEST: He basically says restoring price stability is essential to both sides of the mandate of inflation and labor market. So he's saying, yes, I know it's not nice, this medicine, but if I don't do it will be worse.

SIDNER: You will suffer in the end.

QUEST: Those of us who've got mortgages already, well, we're seeing we're OK in a sense. That's the other proper point. Remember, higher mortgages, higher borrowing costs have also slowed the economy. You've got tighter banking. I know people who are finding it difficult to get a loan in business or personal. That's a tightening of the economy as well.

SIDNER: That is the truth. I do want to just -- I did go look up some numbers because I knew you were here and I wanted to be on par. I wouldn't be able to hang with you, Richard. I know it's hard. But over the last 20 years I think the average inflation rate was 2.5 percent. He wants to get down to all the way to 2. I mean, it seems to me that we are going to see this interest rate go up. No doubt about it.

QUEST: And Paul Krugman, writing in "The Times" says there's no magic in this 2 percent number. Why not take 3 percent. Krugman argues during the Reagan years, the average was 4 percent. However, the traditional thinking now amongst major central banks, the BOE, the ECB, the Fed, is that 2 percent is the inflation target. There are many who say they are tying themselves to anchor that is not necessary.

So it's a legitimate argument. But let me ask you a question. So if you move off 2 percent and you say we're at 3.2, is that enough? Well, if 3.2 is fine. Look, shall we just call it 4 between us?

SIDNER: Oh, I see what you're saying.

QUEST: Well, hang on a second. Four percent, well, four is under the five, so let's just say five and make it a nice round number.

SIDNER: Yes, but I feel like some of this is like juggling with numbers that don't really, you know.

QUEST: Oh, they do. They do.

SIDNER: Between 2 and 3 percent.

QUEST: They do. Because psychologically you push higher.

SIDNER: I see.

QUEST: And also the credibility. You know, let me just back to the speech, if I may. Sorry about this. It is the Fed's job to bring inflation down to our 2 percent goal and we will do so. Now, if he doesn't if he suddenly says, you know, something (inaudible).

SIDNER: It's fine. Well, we'll have to be watching and we love having you on. So come back and visit us. All right, Kate?

BOLDUAN: The FBI has released a list now of 388 names of people still unaccounted for in Maui. That is still so many people now more than two weeks after that disaster. Yet that number of people missing is down dramatically from the nearly 1,000 people that were believed missing in the days after the fires.

The death toll remains at 115 making it the deadliest wildfire in the United States in more than a century. And now Maui County is beginning to place blame for the cause of the fires pointing the finger directly at the local utility companies. The county has filed a lawsuit claiming the company's inaction caused the loss of life. CNN's Natasha Chen has more on this. She's joining us now. Natasha, what are officials in Maui County saying about the cause of this fire?

NATASHA CHEN, CNN NATIONAL CORRESPONDENT: Well, Kate, they don't specifically say the cause in the lawsuit but they are definitely placing responsibility on the utilities, citing negligence here. They're saying the utilities did not keep up their equipment properly. That there were wood decaying poles and that they didn't de-energize the lines even though the NWS had put out high wind watches, red flag warnings and that powering down these poles is a practice in California, Oregon, Nevada that has seen to be helpful in preventing wildfires.

[11:25:10]

Here's a statement from the county in this lawsuit saying the defendant's inactions caused loss of life, severe injuries, complete destruction of homes and businesses, displacement of thousands of people, and damage to many of Hawaii's historic and cultural sites. Now, the electric company told CNN that their primary priority is to take care of the residents and the county. And they're disappointed the county took this litigious route.

Now separately, "The Washington Post" is reporting that the utility company removed damaged poles, lines, equipment before investigators could take a look at where the Lahaina fire reportedly started. And that's according to "Washington Post's" investigation into court documents, letters and records. CNN is still trying to independently confirm that.

To that, the electric company spokesperson told "The Post" in this quote that they are in regular communication with the ATF and local authorities and are cooperating to provide them, as well as the attorneys representing people affected by the wildfires with inventories and access to the removed equipment, which we have carefully photographed, documented and stored.

Now, you mentioned the list of unaccounted is now 388 names that have been released for the first time. The FBI whittled this down from more than 1,000 by verifying who on the list had a first and last name and a phone number contact for who reported this. And here is the police chief talking about this difficult decision to release these names.

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CHIEF JOHN PELLETIER, MAUI POLICE: We are releasing this list of 388 names today because we know that it will help with the investigation. But we're also balancing that because we do know that once those names come out, it can and will cause pain for some folks that are affected by this. This is not an easy thing to do, but we want to make sure that we are doing everything we can possibly to make this investigation the most complete thorough to date.

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CHEN: It has to be difficult to see your loved one's name on that list. And Kate, as a reminder, right now, officially they have confirmed at least 115 dead from the fires.

BOLDUAN: Yes, Natasha, thank you so much for that. John?

BERMAN: All right, he has four indictments, an inmate number, and now a mug shot. Yet most of former President Donald Trump's rivals for the Republican nomination are preferring not to attack him at all. Now we're going to show you polling numbers that explain why.

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