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Combs Back in Court; Arick Fudali is Interviewed about Combs; Rep. Dan Kildee (D-MI) is Interviewed about the Presidential Race; Fed to Announce Rate Cut. Aired 9-9:30a ET

Aired September 18, 2024 - 09:00   ET

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

[09:00:00]

RAHNA EPTING, EXECUTIVE DIRECTOR, MOVEON: Move on, to reach out to Ben & Jerry and say, hey, let's play into this. Let's go to voters in their own communities, in their own daily lives and talk to them about voting and help them make a voting plan.

And let's root that in joy, because let's face it, our politics the last 8, 10 years has been so dire and negative and just not -- not joyful. And I think voters are tired of that. They're tired of the old politics of yore and we want to turn the page. And no better way to do it is bring people together in community with one of the most joyful experiences, sharing a scoop of ice cream. And these guys, you can tell how fun they are. We're having a great time.

And just in the last 24 hours since we've launched, we've already registered 500 people to vote, and they're reaching out to their friends and family to vote as well. So, it's working.

JOHN BERMAN, CNN ANCHOR: All right, Rahna Epting, Jerry Greenfield, and the clearly not lactose intolerant, Ben Cohen. Thank you so much for being with us.

KATE BOLDUAN, CNN ANCHOR: Jerry, give him a glass of water. That is always needed when you're mid-pint. I'm just saying.

BERMAN: Thank you guys very much.

SARA SIDNER, CNN ANCHOR: Ben!

BERMAN: A brand new hour of CNN NEWS CENTRAL starts right now.

BOLDUAN: Today, Sean Combs is back in court fighting to get out of jail after prosecutors revealed the lengthy indictment against him. And we're now also hearing more from his alleged victims.

A big day for the Fed. A big day for interest rates. A big day in the fight against inflation. How low will the Fed go and what it means for you.

And a secret court battle that could have massive implications for Rupert Murdoch's media empire and the future of Fox News.

I'm Kate Bolduan, with Sara Sidner and John Berman. This is CNN NEWS CENTRAL.

BERMAN: So, this morning, we are standing by for the first appeal hearing in a felony racketeering and sex trafficking case against Sean Combs. The hip hop mogul will be back in court very soon to try to get out of federal detention. He was denied bail after prosecutors argued he was a threat. This is what his defense lawyer told Kaitlan Collins overnight.

(BEGIN VIDEO CLIP)

KAITLAN COLLINS, CNN ANCHOR: Is there any chance Sean Combs takes a plea deal?

MARC AGNIFILO, ATTORNEY FOR SEAN "DIDDY" COMBS: I don't see it happening. I do not see it happening. He - he - he is - he is innocent. I believe he's innocent. I believe he's innocent of the charges. And - and he is going to go to trial. And I believe he's going to win.

(END VIDEO CLIP)

BERMAN: Combs is accused of manipulating, threatening, and drugging women in his alleged sex crimes. He has denied all the charges.

CNN's Kara Scannell is with us now on what we can expect next.

Kara.

KARA SCANNELL, CNN CORRESPONDENT: Yes, John, so lawyers will be back in court today, so well Sean "Diddy" Combs. He will be back sitting before a different judge. Yesterday it was a magistrate judge who denied the bail application. Today it will go before the judge who will oversee this trial.

Now, prosecutors say that "Diddy" should remain behind bars, saying that witnesses they've spoken to say that there is - that they are scared. They say that the threat of danger is acute, pointing to the weapons that were seized when they searched "Diddy's" homes in Los Angeles and Miami earlier this year. They also say that they have spoken to more than 50 witnesses and victims to this sexual abuse. They also said that they have dozens of recordings, video recordings, that they have from "Diddy's" own devices of the sex - these sex parties that were drug-fueled, where the women were allegedly forced to engage in sex with "Diddy" and with male prostitutes, often over several days. And that is what they're saying is the strength of the prosecution evidence, the reasons why "Diddy" could try to flee the country and not appear at future court appearances.

Now, his attorneys are saying that this is not a sex trafficking case, but this is a relationship, a ten-year relationship, where there was a fight, where there were consensual sex acts that took place, arguing that it is not what the government is making it out to be. That Combs has previously had run-ins with the law, and he has always attended those court appearances, saying to the judge that they should trust him that he will take this seriously. He came to New York in order to surrender, although he was arrested by authorities on Monday night at his hotel room.

Ultimately, it wasn't enough to satisfy the magistrate judge who said that she could not get comfortable with any conditions of release because of the types of crimes he's accused of happening occur behind closed doors. So even if there is monitoring by pretrial services, it - she said she wasn't comfortable with it. Now they'll make this case again today before the judge overseeing the case. It will be up to him to decide whether to grant Combs bail or to keep him behind bars through the duration till this gets to trial.

John.

BERMAN: Yes, it is big - it is a big day for Sean Combs today.

All right. Kara Scannell, thank you very much.

Sara.

SIDNER: All right, to continue the conversation.

In addition to the federal charges against Sean "Diddy" Combs, he is also facing, as you know, a number of civil lawsuits.

[09:05:08]

The latest filed just last week by former member of Danity Kane, Dawn Richard. She is accusing Combs of sexual battery, harassment and false imprisonment. She says that she is grateful federal prosecutors are pursuing charges against the music mogul.

Joining me now is Dawn Richard's, attorney Arick Fudali.

Thank you so much for being here.

Give us a sense of what it is that your client is alleging, and - and when some of this - these allegations happened.

ARICK FUDALI, ATTORNEY FOR DAWN RICHARD, FORMER MEMBER OF DANITY KANE: Certainly. Well, what's very interesting about what my client has been alleging is that it's strikingly similar to the allegations in the indictment that were released the other day. Allegations such as sex trafficking, forced labor. These are sort of the cornerstones of our - the complaint that we filed, the lawsuit we filed against Mr. Combs. And they're actually - actually jarringly similar and almost mirrored in the allegations in the indictment, which is very interesting and sort of validating for the client, for Ms. Richard, who's faced a lot of ridicule using her own name, putting that on the public lawsuit.

SIDNER: When you say she's faced a lot of ridicule, is she being threatened? Are there - what - what's happening with her?

FUDALI: Yes, unfortunately, it's something I've seen representing a lot of victims against very high profile individuals is you just see online backlash. When someone is as beloved and as popular and even as notorious as someone like Mr. Combs, you're just going to see backlash. You're just going to see online ridicule anytime someone has the courage to stand up and fight against someone who is so, so powerful in the industry.

SIDNER: You know, we've all seen that awful, awful video of Sean Combs dragging Cassie through the hallway of the hotel in a public place. He's wearing a towel. And it's just an awful scene.

What does your client know about the relationship between Combs and Cassie?

FUDALI: I can say a couple things. You know, first of all, it was Ms. Ventura's lawsuit and her becoming - going public that inspired Ms. Richard to stop suffering in silence and for her to move forward with her lawsuit. And certainly that violence and the violence that was witnessed by a lot of people, allegedly, is a big part of the lawsuit that we filed.

It also, very interestingly, was a big part of the government's argument yesterday during the arraignment, which I was at, in arguing against bail and for detention. They made a big deal. And the judge seemed to really take that in, in her decision to decide that he should be detained pre-trial, discussed his sort of erratic and violent alleged behavior.

SIDNER: Did she see this violent behavior in person? We all saw some of it on video. But was she a witness to some of this violence?

FUDALI: Yes, certainly - it's certainly alleged in the complaint that there was - that she was a witness to the violent behavior. And we've all seen that video that is just so jarring and so shocking and so, so disturbing. And it's things like that, that have really inspired Ms. Richard to - to finally come forward and really speak her truth.

SIDNER: We heard from Sean "Diddy" Combs' attorney. He talked to our Kaitlan Collins last night. And she asked him about the video, which Combs first denied ever doing any of the allegations against him from - from Cassie Ventura. And then, when the video came out, he then said, this is awful, I'm sorry, et cetera.

Let me let you hear, though, how his attorney is couching all of this.

(BEGIN VIDEO CLIP)

MARC AGNIFILO, ATTORNEY FOR SEAN "Diddy" COMBS: This is eight years ago. And - and the prosecutors are talking about him bribing a hotel security worker. There was no criminal investigation. This was just a matter of - of personal embarrassment because he and the person in the video were in the midst of a ten-year relationship that was difficult at times, that was toxic at times, but it was mutually so. And this whole notion that Mr. Combs is forcing drugs on someone is just nonsensical and it's going to prove to not be true.

(END VIDEO CLIP)

SIDNER: There is nothing mutual about what is happening in that video that we're seeing. But he's arguing this is a ten-year relationship, it was volatile and there's nothing there. FUDALI: A relationship and domestic violence are not mutually exclusive. Certainly, me and Mr. Combs' attorney have far different ideas of what personal embarrassment means. What I saw in that video has nothing to do with personal embarrassment. What I saw in that video was - was violent and shocking and disturbing. And excusing it, that they may have been in a toxic relationship, doesn't excuse it You can be in a toxic relationship, you can be in a loving relationship, and that doesn't mean that domestic violence isn't present. And I think everyone who's seen that video probably has a very different opinion of what they saw than what was just described by Mr. Combs' attorney.

SIDNER: I'm curious, after your client sort of saw the federal indictment with these really, really serious charges against Sean Combs and after she filed her lawsuit, was there anything in that indictment that surprised her, surprised you, that you had never heard before?

FUDALI: I think what was most surprising, not necessarily what we hadn't heard before, although there were things we heard during the arraignment, but what was so striking was how similar they were. There were really almost a mirroring of the allegations.

What was really surprising was during the arraignment when it was revealed by the prosecutors that Mr. Combs, the day after we filed - or the day we filed our lawsuit, fall - the four days following had contacted one of the witnesses mentioned in our lawsuit, had 128 phone contacts with that witness, who then, four days later, made a statement that was contrary to some of the allegations in the complaint.

[09:10:16]

That was shocking. That was jarring. One hundred and twenty-eight phone contacts. Then after the witness made the statement, not a single phone contact after for Mr. Combs. And that was one of the primary arguments they made, accusing him of intimidating, pressuring witness, that was sort of the basis for their argument for detention.

SIDNER: Wow. So, you're saying he contacted a witness in your case and called that person 128 times. And this is what the court is looking at, in part, to say that we can't let him out of jail because he might intimidate witnesses, other witnesses, all the witnesses, if he can.

FUDALI: Exactly. Within the four days after falling our complaint, there were 128 phone contacts between this witness that was mentioned in our complaint and Mr. Combs. This is according to the government. And then not a single contact after that witness gave a statement publicly.

SIDNER: All right. Erick Fudali, thank you so much for coming on, explaining your case. And we will probably be talking to you again in the near future. Appreciate it.

FUDALI: Thank you.

SIDNER: Kate.

BOLDUAN: Donald Trump is in battleground - in battleground Michigan. And Donald Trump making big promises to try to win over the auto industry. The impact of that, we will have it.

And the big announcement coming from the Fed, set to cut interest rates for the first time since the pandemic. What does this mean for you and the fight against stubborn inflation?

Solitary confinement. Brutal conditions. Paul Whelan now home after years of being wrongfully detained in Russia and now speaking out about those five-and-a-half years and what he endured.

(COMMERCIAL BREAK)

[09:16:20]

KATE BOLDUAN, CNN ANCHOR: Today, Donald Trump is campaigning in New York, heading to Long Island, where he promises to get SALT back, he said on social media, referring to the state and local tax deduction, or SALT, which is a big deal in states like New York, even though Republicans back in 2017, when he was president, capped that deduction to offset the cost of other tax cuts.

In Michigan yesterday, Trump made another big promise, that he will put a 200 percent tariff on car imports coming from Mexico if he's re- elected.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), FORMER U.S. PRESIDENT AND 2024 PRESIDENTIAL CANDIDATE: You used to be the capital of the world in cars. Today you're an afterthought in cars.

We are going to bring so many auto plants into our country. You're going to be as big or bigger than you were 50 years ago, because they won't be able - if they're not willing to build a plant, we don't want their product. And that's enough.

(END VIDEO CLIP)

BOLDUAN: Joining us right now, Democratic Congressman Dan Kildee of Michigan. He was in Flint. You represent and are from Flint, Congressmen.

Trump promised, among a lot, he's going to bring so many auto plants back to the state. But he didn't reveal a plan other than that 200 percent tariff I was just talking about. Also said he - if he doesn't win, there will be zero car jobs, manufacturing jobs, if he is not elected.

Are either of those two things possible?

REP. DAN KILDEE (D-MI): Well, let's sort of fact check the president, the former president. In 2016, he said the very same thing, that he's going to bring all the auto factories back to Michigan, back to the United States. We lost manufacturing jobs. He was president for four years and he lost those manufacturing jobs. Joe Biden, as president, has been the one to bring them back.

But let's - let's fact check him again. In 2020, when he was running against President Biden, he said that if Biden won there would be no more manufacturing. We've added manufacturing jobs, even in my hometown of Flint. When Trump was president, we lost 5,700 jobs in Flint, manufacturing jobs. With Joe Biden, we gained 11,000.

So, look, this is a familiar promise. A promise that he broke when he was president, and a promise that Joe Biden actually kept. We have grown manufacturing jobs in the United States, and we've grown auto jobs in the United States. So, he's living in his alternative universe. And I guess we're just going to have to hear him say these things over and over again, even if they have no factual basis.

BOLDUAN: Let me ask you about that. Even if not true, does it concern you that they will successfully work to persuade voters? Does that concern you?

KILDEE: You know, there is a cohort of the electorate that believes anything Donald Trump says. And what I've been telling my friends, as we wage this campaign, you know, those folks will believe what he says. We have to appeal to the people who are actually thinking about these issues, who are actually open to conversation. So, let the Trumpsters - let's just let them have their - their fake world.

We need to really address the voters who are honestly thinking about the future and then ask them a simple question, measure the Biden- Harris record against the Trump record. With Trump, we lost jobs. With Biden and Harris, we gained jobs more than we lost. If we want to continue on the path toward growing our economy by investing in manufacturing, we need to elect Kamala Harris. If we want to go back to this angry and failed presidency of Donald Trump, I don't think people are going to make that choice. Let's put it that way.

BOLDUAN: Let me ask you about this, very relevant in Michigan and beyond.

[09:20:01]

The teamsters labor union president has said that they could announce an endorsement, if there is going to be an endorsement coming, as soon as today. A top Trump surrogate was on - a member - a Republican member of Congress was on with me yesterday and said that if Trump wins the endorsement of the teamsters, it's going to be game, set, match. The election will be finished.

Do you agree with that assessment?

KILDEE: No, I don't because, you know, first of all, I don't know what the teamsters will do.

I do know this. That because of President Joe Biden and Vice President Kamala Harris, there are tens of thousands of teamsters that were going to lose their pensions that now have those pensions secured. But those individual members are going to make up their own decision based on who they think serves them best. And no matter what - and I don't know what they'll do, that fact, at least in my home state of Michigan, is not lost on union members, particularly teamsters, who have their pensions restored because of Biden and Harris. Donald Trump never did anything to fix that problem.

BOLDUAN: So, since the second assassination attempt on Trump's life, Congressman, he and his running mate, J.D. Vance, they have - and other Republicans - they have made a very coordinated effort and messaging effort to - they are blaming those attacks on rhetoric and words coming from Kamala Harris, Joe Biden, and other Democrats towards Donald Trump and how they've talked about Donald Trump for years, call - specifically pointing to the calls that he is a threat to democracy. Which led me to asking Congressman Byron Donalds for a gut check yesterday.

Listen to this.

(BEGIN VIDEO CLIP)

BOLDUAN: In terms of rhetoric, do you think - do you think Donald Trump, and the Trump campaign, do you think they have a problem with rhetoric as well?

REP. BYRON DONALDS (R-FL): No, and I don't. I think especially in light of the fact that there has now been a second assassination attempt on the life of President Trump, I do not believe so. What we are seeing now is that you do have radical elements of the Democrat Party.

(END VIDEO CLIP)

BOLDUAN: What do you say to that, and this general conversation about toning down the rhetoric? Something you and I have talked about for years.

KILDEE: Yes. I mean, first of all, I believe we need to tone down the rhetoric in - in the American political dialogue. I also think there's no place in this country for political violence.

But let's just be clear, if anyone is engaging in, you know, caustic, incendiary rhetoric over the last eight years, my god, it's Donald Trump. For goodness sake. I mean, we - I'm a - all of us are victims of political violence. I was in the Capitol on January 6th. That was political violence whipped up by Donald Trump, and now since celebrated by Donald Trump.

So, look, two deranged individuals, motivated by whatever, went after Donald Trump. That's horrific. We can't accept that. But the idea that Donald Trump and his surrogates are saying that it's Democrats who are engaging in this dangerous, political speech, when we have seen Donald Trump call members of the media, your industry, the enemy of the people, I mean, my goodness. We - we really have to fact check this guy and all of his surrogates because typically what they do is accused their opponents of the very actions that they continue to take to try to deflect from any criticism. And, you know, I assume that that's what Representative Donalds was doing. I don't know where he gets his facts, but it's a different set of facts than what most people have seen.

BOLDUAN: Congressman, thank you for coming in. It's important.

Congressman Dan Kildee, from battleground state and great state, Michigan, thank you.

KILDEE: Thank you.

BOLDUAN: John.

BERMAN: All right, the Federal Reserve set to announce a cut to interest rates for the first time in years. What it means for you and your wallet.

And a real-life succession battle for control playing out in a Nevada courtroom. Rupert Murdoch caught up in a family dispute over his multibillion-dollar media empire.

(COMMERCIAL BREAK)

[09:28:42]

SIDNER: Just hours from now, a major decision from the Federal Reserve. Officials are expected to announce the first rate cut since 2020. A major milestone in their fight against inflation. The question on everyone's mind, though, is, how low will they go?

CNN business anchor Julia Chatterley is joining us now.

This has been a longtime coming. What are you expecting?

JULIA CHATTERLEY, CNN BUSINESS ANCHOR, "FIRST MOVE": It's endless. The first rate cut in four years. The most talked about cut, I think, ever, at least by me. And yet we don't know what they're going to do. This is so unique for so many reasons.

Analysts at this moment think they'll do a quarter of a percentage point. Investors, far more optimistic. They see a way bigger chance of a half a percentage point cut.

So, either way, the key todays is what Jay Powell says. He's going to have to justify whatever he does. He's going to talk about the jobs market. He's going to talk about inflation.

But the key for me today, more importantly, to your point about how low they can go, where do they see interest rates ending up? Because, ultimately, that's what matters for us. It matters for our money. It matters for America's borrowers. And that's going to filter into all the things that we spend our money on in our lives.

Credit cards is a great example. It is going to impact credit cards, and it happens quite quickly. The problem is the average new rate on a credit card right now, 25 percent.

SIDNER: That's mind-blowing.

CHATTERLEY: Whatever they do today, your rate is still going to be 24.9 percent.

[09:30:03]

This is the most expensive way of borrowing money.

Next one, mortgages. We've already seen mortgages fall to, what, 18- month lows.