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Prices Fell in June for the First Time Since Start of the Pandemic; Attorney: Rust Film Armorer Plans to Plead the 5th; U.S., Germany Thwart a Russian Assassination Scheme. Aired 3:30-4p ET

Aired July 11, 2024 - 15:30   ET

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

[15:30:00]

TIM RYAN, (D) FORMER OHIO CONGRESSMAN: Being out of touch with what's happening within the Democratic Party and what's happening in the country and to think you're the only one who could do it I think shows that maybe his decision-making isn't where we need it to be.

BORIS SANCHEZ, CNN HOST: Former Congressman Tim Ryan we appreciate you joining us thanks for the perspective.

RYAN: Thanks Boris.

SANCHEZ: Next some good news on inflation even better news for Americans hoping for an interest rate cut. We'll explain in just a moment.

(COMMERCIAL BREAK)

[15:35:00]

JESSICA DEAN, CNN HOST: DEAN: Prices in the United States did something last month they have not done since the early part of the pandemic, they fell. Dropping 0.1 percent in June, falling prices on everything from appliances, to airfares, to gas, to new and used cars helped lead to the first month to month decline since May of 2020.

Now this report bolsters hopes that a Fed rate cut could come sooner rather than later and it's welcome news for Americans who have been weighed down by high interest rates and rising prices.

It's also welcome news for our guest Gene Sperling, he's a senior advisor to President Biden and coordinator for the American Rescue Plan, that's the Biden administration's blueprint on rescuing the economy in the wake of the pandemic. Gene, great to have you on, thanks so much for making time.

The conventional wisdom around today's news is that this makes a rate cut by the Fed more likely when they meet in September. And so I'm curious what you would say to someone out there who's maybe looking to buy a home or planning ahead to borrow money in some way after hearing today's news.

GENE SPERLING, SENIOR ADVISER TO PRESIDENT BIDEN: Well, first of all, they probably shouldn't listen to a policy guy on their own personal finances. But look, what I'd say is, you know, our agenda, this president's economic policy agenda is laser focused on bringing down prices and costs for families across the board, not just in food, but from, you know, childcare to prescription drugs. What I would say is that this really marks a degree of progress that I think is worth noting.

You know, yes, the entire world has experienced inflation after the pandemic. But today we saw, as you say, an actual decline in prices. And over the last three months, we've seen inflation at just 1.1 percent annualized.

And if they look at what the Federal Reserve likes to look at, which is the what's called the PCE inflation indicator, that is at 2.6 percent, very close to their ideal goal of 2 percent.

And I think you made an important point in your introduction. You know, we've heard a lot of people say, yes, I'm glad prices are slow and I want them to actually go back down.

Well, you saw smartphones and actual apples fall 10 percent this month. You've seen toys, telephone, used cars, as you've seen. So we are seeing a lot to going down.

You know, in my position as a White House economic advisor, you know, we're careful not to instruct or try to see -- be seen as encouraging the independent Fed. But what I would say is that this is showing real progress, consistent number of data points, which I think should give people confidence that inflation is making -- is moving down, making progress. Again, it's for the Fed, not me to decide whether it gives them enough confidence. But I can imagine some people hoping so.

DEAN: Yes, and look, it is great news that inflation is cooling. We do know that some experts also took this data. They're a bit concerned that there are some yellow lights, as it were, that are blinking when it comes to the jobs market. And the Federal Reserve Chairman Jerome Powell has acknowledged a slowing jobs market. Do you agree that that is something that needs to be watched, that there's a balancing act that needs to happen there?

SPERLING: Well, let's look at what we're actually having. Right now the United States president is meeting with everyone from NATO. They look at the United States and say you have the highest growth of any country coming out of the pandemic. You have the highest job growth. You have -- our unemployment over the last two, 24 months is the lowest since 1970. So what you're talking about is, you know, did we see some moderation to more like 200,000 a month?

Well, that's 2.5 million jobs a year. That is still an extremely strong, steady, stable economy. So remember, the Fed was worried when we were too hot, when it was, you know, when they were creating 4 or 500,000 jobs a month.

And what did we say? We want to -- we want to see that transition to a resilient, stable, reliable growth. Now, I think you're seeing that.

And I think that that one should feel pretty comforted that we still have unemployment about, you know, at 4.1 percent, still near 4 percent. We still have job growth averaging well over 200,000 jobs a month. And now we're seeing prices come down.

You know, people always ask, is it Goldilocks? Well, it's pretty -- you know, is it just right? You've got to look. You've got to look at all the yellow lights. You can't ever rely.

But I think, you know, it's about as Goldilocks as you could hope for in this situation.

DEAN: Gene, let me ask you before you go. You work with President Biden. There are a lot of questions.

[15:40:00]

So swirling around -- I don't have to tell you this -- swirling around his fitness for office. Have you noticed a decline in the president recently?

SPERLING: You know, no, I have noticed, you know, over the last year and a half or so, maybe a year or so, his movements are, you know, he's a little tighter as we all are. I am, too. And I just turned 65.

But, you know, I was with this president a lot over these last three years. But I was with him particularly a lot when he -- when I was in his guy helping with the UAW big three negotiation. I saw him as he made phone calls to the different CEOs, to Shawn Fain, the head of the UAW.

I saw him as he made that decision. He was actually at the United Nations. He called us together over Zoom to make the decision to be the first president on the picket line.

I got to go out with him in events, you know, this year I traveled all day. I see a guy who is really detail oriented. I think any of us who work on speeches with them think he's more demanding, going to ask more tough questions.

So, yes, I mean, I was surprised by the debate night. It was -- it was a low night, but that did not reflect has not reflected what I see every day and what all sorts of people see every day. As the president goes from dealing with Israel and Hamas to dealing with NATO, to dealing with the economy, to the border.

I think, if anything, I get exhausted watching him have to deal with so many issues and be on top of them, not just understand that, but be able to get on the phone with Zelenskyy or Netanyahu and be a master of the topic and able to cajole and persuade.

DEAN: All right, Gene Sperling, thank you so much for joining us. We appreciate it.

SPERLING: Thank you. Thanks for having me.

DEAN: We'll be right back.

[15:45:00]

(COMMERCIAL BREAK)

SANCHEZ: This just into CNN. The armorer of the film Rust is going to plead the fifth in Alec Baldwin's involuntary manslaughter trial. Hannah Gutierrez-Reed is set to testify tomorrow, but her attorney now tells us she is not going to cooperate.

CNN's Elizabeth Wagmeister joins us now with the details. Elizabeth, what are you learning?

ELIZABETH WAGMEISTER, CNN ENTERTAINMENT CORRESPONDENT: : Yes, this is new information just in to us at CNN. That Hannah Gutierrez-Reed, the armorer from Rust, is going to be called tomorrow to testify. That is the plan as of now, but her attorney telling us at CNN that she will not cooperate.

Now, in a pretrial interview, Hannah Gutierrez-Reed said that she did not want to testify. Prosecutors had asked the court to grant her immunity, but they did not grant her immunity, so now she will be testifying, but her attorney tells us that she will be using her -- she will be pleading the fifth.

Now, what's going to be interesting, of course, is to see when she goes under cross-examination from Baldwin's defense, because as you said, Hannah Gutierrez-Reed has already been convicted on the same charge that Baldwin is facing of involuntary manslaughter. She is currently serving an 18-month sentence.

Now, she is going to be transported from prison to court in New Mexico when she is called to testify, and she is appealing this conviction. So, of course, anything that she says could be used against her as that appeal is, you know, is being considered.

Now, earlier today, there was a crime scene technician who testified, and they brought about some very interesting and crucial details about live ammunition that was found on the set. They said that it wasn't just Alec Baldwin who had a live bullet in his gun. There was another actor by the name of Jensen Ackles who also had live ammunition in his holster.

So this really now is starting to paint a picture of what was going on, on this set. And now that we have confirmation that another actor did have live ammunition, we're seeing the photos right there that were shown to the jury today. Now that we have confirmation that live ammunition was with another actor in his holster, this also indicates that another actor could have been put in the same position to be holding a gun that could have fatally shot anyone on that set.

SANCHEZ: Yes, potentially a major development in the case. Elizabeth Wagmeister, thanks so much.

Coming up, CNN has exclusive new reporting on a thwarted Russian plot to assassinate the head of a weapons company supplying Ukraine. How the U.S. and Germany stopped it.

[15:50:00]

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DEAN: As world leaders gather here in Washington for the NATO summit, we're learning about a foiled assassination plot overseas.

SANCHEZ: Yes, this is like something out of a spy novel. A new CNN exclusive report details an alleged Russian plan to murder the CEO of an arms company that's been supplying weapons to Ukraine.

CNN's Natasha Bertrand helped break this story and joins us now with the detail. She joins us from the NATO summit, I should point out. Natasha, what are you learning?

NATASHA BERTRAND, CNN NATIONAL SECURITY CORRESPONDENT: Yes, Boris, so this was a plot that the U.S. intelligence community uncovered regarding a Russian government plan to try to assassinate the head of Germany's largest defense contractor. Which has been extremely helpful in providing weaponry and equipment to the Ukrainians, particularly when it comes to 155-millimeter ammunition, which is so key on the battlefield in Ukraine.

And the CEO of that company has been extremely outspoken about his support for the Ukraine and the fact that he intends to open factories inside Ukraine itself to build more equipment, including armored vehicles. So all of this really made him a really important and key target for the Russians, we're told.

And the U.S. picked up this intelligence and promptly shared it, of course, with the German government, who then added additional security around the CEO, Armin Papperger. And right now, he is still surrounded by this increased security bubble in light of this ongoing Russian threat.

So this was one plot that was disrupted. But U.S. officials say that it is not the only one that they have picked up amongst Russian officials planning to try to assassinate or harm in some way European defense industry executives because of the fact, of course, that they are providing so much support for the Ukrainians and the Ukrainian military.

Now, at this point, what we're hearing from NATO leaders who have been asked really about this left and right today is that, you know, they are not going to comment on this specific report. But we did get some insight from the German foreign minister earlier today, who said that this is an exact example of Russia's, quote, hybrid war of aggression against Europe and why Europe needs to be very vigilant at this point amid this broader Russian sabotage campaign that they believe Moscow is waging to try to undermine support for Ukraine.

We also heard from a senior NATO official who put it in pretty stark terms. He said, we're seeing sabotage, we're seeing assassination plots, we're seeing arson, we're seeing things that have a cost in human lives. And he added, I believe very much that we're seeing a campaign of covert sabotage activities from Russia that have strategic consequences. [15:55:05]

Now, we also reported earlier this week that U.S. military bases across Europe were placed on a high alert really for the first time in over a decade just last week because of this threat of Russian sabotage. So it is very real. It is deeply concerning. And it has been top of mind here at NATO over the last several days.

DEAN: And Natasha, what are NATO's options for responding to this kind of move by Russia?

BERTRAND: You know, it's really tough because right now this kind of falls just below the level of direct armed conflict, state on state violence, of course, Russia directly attacking a member of NATO or European country directly. These assassination plots are something that Russia has done before. Of course, we have seen them carry them out on European soil, including in England a few years ago.

So it's difficult for NATO to kind of come up with a solution to this short of sanctions, for example, or additional economic penalties. But strategically, what they are thinking about right now is just really increased intelligence sharing among the alliance so that they can get everyone together on the same page to kind of connect the dots and prevent these plots from actually being successful in the future.

SANCHEZ: Natasha Bertrand, live from the NATO summit. Thank you so much.

Stay with CNN. We're back in just moments.

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SANCHEZ: The world has a new pageant queen and this is weird. Meet Kenza Layli. She's a Moroccan lifestyle influencer who's just been crowned Miss AI.

AI is an artificial intelligence. That's right. She's not real. Everything from these images and videos that she's in, to her social media captions. This is all AI generated.

DEAN: It's so weird.

[16:00:00]

Pageant organizers say competitors had to answer questions like real human pageant contestants and they weren't judged on their looks alone, but on their creators use of AI tools as well. Around 1,500 programmers from around the world entered and Kenza Layli's very real creator won $5,000.

We're just not ready for AI. We're not ready.

SANCHEZ: No, no. It's uncanny. You can tell it's not real, but it's just real enough that it just creeps you out.

DEAN: Yes. We'll leave you with that. SANCHEZ: We hope we haven't creeped you out.

DEAN: We're real.

SANCHEZ: Thanks for being with us. "THE LEAD" with Jake Tapper starts right now.