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Trump Campaigns in New York; Harris Courts Hispanic Voters; New Explosions in Lebanon; Federal Reserve Expected to Cut Interest Rates. Aired 1-1:30p ET

Aired September 18, 2024 - 13:00   ET

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

[13:00:48]

BRIANNA KEILAR, CNN HOST: How far will the Fed go?

One hour from now, it is expected to announce its first rate cut in four years. It's a move that could seriously help the economy and jobs just weeks before Election Day.

And behind bars and fighting to be released on bail. Sean "Diddy" Combs will be back in court today appealing a judge's decision to hold him in custody, as the jail where he could await trial is known for poor conditions.

BORIS SANCHEZ, CNN HOST: And new explosions across Lebanon. This time, the target is walkie-talkies, as we learn more about Israel's complex operation to detonate pagers, injuring thousands of people.

We're following these major developing stories and many more all coming in right here to CNN NEWS CENTRAL.

KEILAR: The Federal Reserve is on the brink of doing something that it hasn't done for years, and that is cutting interest rates.

That's an announcement that we're expecting here just in about an hour from now. And the big question is, how low are they going to go? Regardless, it's a milestone in the Central Bank's fight against inflation.

Let's go straight to CNN's Matt Egan, who is live inside the Federal Reserve Building here in Washington for more on what to

expect.

What does this cut signal, this expected cut, for the economy, Matt?

MATT EGAN, CNN REPORTER: Well, Brianna, this is shaping up to be one of the more suspenseful Fed decisions in recent memory. Here we are, less than an hour before the decision gets released, and almost no one really knows for sure exactly what the Fed is going to do.

That's rare. Usually, this kind of thing is telegraphed weeks or even months in advance, but right now the market is kind of split almost exactly 50/50 on whether or not the Fed is going to go big with an interest rate cut of half-a-percentage point or if they're going to lower rates at a more gradual pace of a quarter-of-a-percentage point. Now, I know this may sound like inside baseball, but this is a big

deal, not just because that bigger cut means a bigger break for borrowers, but because of what its signal is going forward. If the Federal Reserve ends up going with a smaller cut, that would signal some confidence, not just about inflation, but that the Fed doesn't need to come to the rescue of this economy.

On the other hand, if they end up going with a big cut, that would suggest at least some level of concern about the jobs market. Now, we can debate over just how big of a concern, and we will hear from Fed Chair Jerome Powell to explain this decision, but there is a risk here that if they go with a bigger cut, it could actually undermine confidence, right?

Some people are going to be wondering, what does the Fed know that we don't know? Why do they feel like they need to come to the rescue? And so that's why Moody's economist Mark Zandi, he told me he thinks the Fed is going to go with a smaller cut. He said big cuts are reserved for emergencies.

And, Brianna, this doesn't feel like an emergency.

KEILAR: All right, Matt, thank you so much for that.

Let's turn now to CNN business correspondent and anchor of the "FIRST MOVE," Julia Chatterley, for more on what this could mean for consumers.

Julia, how are Americans going to be feeling this?

JULIA CHATTERLEY, CNN BUSINESS ANCHOR: It depends if you're a borrower or a saver, Brianna, because, if you're a borrower, it does feel like an emergency.

Take credit cards, for example. You will see rates adjust pretty quickly. But, just to be clear, the average rate on a new credit card right now is 25 percent. Even if they do a big cut here, you're barely going to feel it. My advice is focus on zero percent balance transfers, watch the fees, and look at smaller banks, rather than big ones, perhaps for better options.

Auto loans is another thing. Rates on auto loans, the cost of cars, still higher than it was pre-pandemic. This also matters for your credit history, of course, and what you're buying. Shop around is my advice as those rates come down.

And then if you're a saver, this is better news. Now's the time to lock in high rates before the Fed cuts even more. Look at certificates of deposits. It's above inflation, and this is important if you do have money you can save.

KEILAR: And, Julia, does this mean that Americans who have been waiting and saving to buy a home are going to have an easier time?

[13:05:05]

CHATTERLEY: That's a great question.

Look, mortgage rates are already adjusting and have been. We're now sitting, at least for 30-year mortgage rates, at an 18-month low. The move today is good news if you have an adjustable-rate mortgage or you have a home equity line of credit, because those rates will tick higher and -- tick lower.

And we are expecting to see mortgage rates keep coming down. The problem, Brianna, here is that it doesn't help with the sheer expense of buying a home and how costly they are. And the risk now as rates come down is actually that those home prices move a little bit higher.

Ultimately, for me, what matters today is what they say about how low they can go ultimately and how quickly they bring down rates. That matters far more than just one or two and the size of the cut today. It's how much they can do in total, because that's really going to be what helps borrowers.

KEILAR: All right, we will be looking for that.

Julia Chatterley, thank you so much -- Boris.

SANCHEZ: We're following breaking news this afternoon out of the Middle East, two consecutive days of explosions in Lebanon, first pagers, and today walkie-talkies. Watch this.

Lebanese health officials say at least nine people were killed, more than 300 were injured in today's attacks. And we're getting new video of what's left of some of the devices after they detonated. Look at this. It comes a day after pagers exploded in this highly coordinated attack against Hezbollah, killing at least a dozen, injuring thousands.

CNN has learned that yesterday's blasts were part of a joint effort between Israel's intelligence service and its military. And sources tell us that Israel notified the United States it was going to carry out an operation in Lebanon Tuesday, but it did not give any details, any specifics about its plans.

So far, Israel has not commented, but Hezbollah has vowed retaliation.

Let's take you to Beirut, Lebanon, now with CNN senior international correspondent Ben Wedeman.

Ben, what are you hearing from people on the ground there?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: People are very concerned, Boris. People are very concerned that two days in a row there have been these spate of attacks.

Yesterday, of course, we believe thousands of explosions, leaving 2,800 people killed when pagers exploded. And today, of course, we're seeing that at least 300 people were injured, more than nine killed when walkie-talkies went off.

Now, one of the -- that video you were referring to was taken at a funeral for several people who were killed yesterday by these pager blasts, and that was a walkie-talkie going off. So people are very concerned about this situation, keeping in mind, of course, that by and large, since last October, with obvious exceptions, the violence, the killing, the death, the injuries, the destruction has been largely restricted to the border area.

But what we saw today, for instance, according to Lebanese security forces, somewhere between 15 and 20 explosions going off in Southern Beirut, where, of course, Hezbollah has a strong presence, and we're hearing also this evening additional explosions in other parts of the country as well.

Now, it was thought that after August, when you had that high-profile assassination of a senior Hezbollah commander, and about four weeks later, Hezbollah announcing a series of rocket and drone attacks, it was thought that perhaps tensions would ease.

But now, of course, with the events of the last 26 hours or so, concern is that we are heading into an even more serious escalation that could result in the massive war between Hezbollah and Israel that so many people have been worried about going back to last October.

SANCHEZ: Ben Wedeman live for us in Beirut.

Thank you so much for the update, Ben.

Let's get some perspective on this story with former CIA officer Bob Baer.

Bob, thank you so much for being with us.

I first want to get your reaction to this fresh wave of explosions, this time using walkie-talkies.

BOB BAER, CNN INTELLIGENCE AND SECURITY ANALYST: Well, it's clear to me that the Israelis are taking out Hezbollah communications. They primarily use pagers to signal each other, but they use walkie-talkies for tactical communications in the south and the Beqaa Valley.

They always have. They use call signs and the rest of it. So, they're fairly secure, but, again, it's clear to me that the Israelis, remarkably, right -- this is incredible what they have done -- has got into the supply network of Hezbollah communications, right into the middle of it.

[13:10:07]

And what concerns me is, this is a preparation Israel's part for going into the south. They have been talking about it. The defense minister has brought it up today. It's time to shift from Gaza to the north.

And, in my mind, what that means for the Israelis is, they need to put ground troops in the south, possibly all the way to Beirut or even the Beqaa Valley. So we are going to see a new phase of this war. That's the best prediction I can make.

SANCHEZ: So you think this is a precursor to something much large.

On that note, we learned that Israel told the United States that it planned to carry out an operation yesterday. It did not, as I noted earlier, share any specifics. First, I wonder why that is. And, secondly, if you think that if Israel were planning some operation in the south, it would share details about that with the United States, because that's much more broad than even pagers or walkie-talkies exploding.

BAER: Well, Israel worries about American leaks and telling Washington something like this would get disseminated everywhere and would leak to the press.

Saying we're doing an operation in Lebanon really means nothing at all. It could be a commando operation. It could be shelling or whatever. As for going into the south, Netanyahu has signaled for a long time that this war is going to shift north. And the only way it can shift north is either a repeat of 2006, which is massive bombing in Lebanon, or even going in, as they did in '82.

Either way, we're talking about a conflict, as we have been since 7th of October, that could escalate at any moment, and nobody is able to predict in which way it would go.

SANCHEZ: Yes.

So Axios and Al-Monitor reported that Israel thought Hezbollah might have uncovered that plot and that break-in into their supply chain. That ultimately left the Israeli security establishment facing the scenario where they either used it or lost it and they clearly decided to use it.

What goes into making that kind of decision?

BAER: Well, usually it would -- the Israelis would pick up -- if this is true -- and I have seen nothing to substantiate it. If they would pick up and intercept is, hey, we better start checking our pagers and our walkie-talkies.

And at that point, the Israelis' hand would be forced, because a lot of effort went into this operation. And the last thing they wanted is Hezbollah to be taking apart as radios and finding the explosives. So that is a possibility.

But, again, so much about Hezbollah is thinly sourced that I'm going to wait to see if this is true.

SANCHEZ: Sure. There are obviously several deaths, at least 21, some 3,000 injured among these two sets of explosions. Do you think that Israel accounted for the danger that these operations may have posed to civilians?

Because seemingly, at that scale, it may be hard to know exactly who's holding that pager in that moment if there's perhaps a child or someone unaffiliated with Hezbollah nearby that could get hurt. BAER: Oh, they knew there'd be civilian casualties, because these

pagers are in effect shrapnel once they blow up, and pieces of metal will go in all direction. They knew there'd be civilian casualties, for sure.

And they also couldn't be sure who had which pager. So it was a major attack, almost like dropping a missile on parts of Beirut. When they killed Fuad Shukr, the Hezbollah military commander, in his apartment, I assume it was thanks to a cell phone compromise and it was a fairly limited attack.

With people in grocery stores out, in funerals and the rest of it, they are out to humiliate Hezbollah. And they have in a sense that they have -- their security used to be the best in the world. I mean, you couldn't get inside this group.

And now, apparently, the supply network that they have been buying this stuff from has been criminalized, that they have sold out to the Israelis, which is a new turn in Lebanon.

SANCHEZ: Bob Baer, really an eye-opening story, something out of fiction, it seems, but, obviously, it portends potentially more serious consequences, as you laid out.

Bob, we appreciate your time.

BAER: Thank you.

SANCHEZ: Still to come this hour: Vice President Harris is making her pitch to Hispanic voters today, a key voting bloc where Republicans have gained ground.

Meantime, former President Donald Trump also on the trail today in the deep blue state of New York. Why his advisers say he's spending his time in a state that hasn't voted a Republican to the White House in some 40 years.

[13:15:09]

And, later, rap mogul P. Diddy will soon be back in court, hoping to overturn a judge's decision to keep him behind bars without bail.

You're watching CNN NEWS CENTRAL. We will be back in a few minutes.

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KEILAR: On the heels of her conversation with the National Association of Black Journalists, Vice President Kamala Harris is back on the trail, and she's targeting crucial caucuses of Democrats.

She just wrapped up speaking at the Congressional Hispanic Caucus Institute's Leadership Conference. A new ABC episode/Ipsos shows her comfortably ahead of former President Trump among Hispanic likely voters.

[13:20:07] We have CNN's Priscilla Alvarez traveling there with the vice president.

Priscilla what has she been saying?

PRISCILLA ALVAREZ, CNN WHITE HOUSE CORRESPONDENT: Well, the vice president went through many of the same issues that she often does on the campaign trail, talking about the economy and price gouging, as well as reproductive rights.

But there was a moment where she went a little deeper on an issue that we don't often hear too much about. And that was on immigration reform as she was speaking to this audience of Hispanic lawmakers and staff. She talked about fixing a broken immigration system, but also making the case that, in doing, that border security should also be front of mind.

But then she went a step further and started to tick through some of our President Donald Trump's most controversial immigration policies. Take a listen.

(BEGIN VIDEO CLIP)

KAMALA HARRIS, VICE PRESIDENT OF THE UNITED STATES (D) AND U.S. PRESIDENTIAL CANDIDATE: We all remember what they did to tear families apart.

And now they have pledged to carry out the largest deportation, a mass deportation, in American history. Imagine what that would look like and what that would be. How's that going to happen? Massive raids?

(END VIDEO CLIP)

ALVAREZ: So the vice president there drawing that stark contrast with the former president by specifically calling out some of his immigration policies and proposals.

Of course, by tearing families apart she referred there to the family separation policy under the Trump administration. But the vice president and her team have been largely focused over the last week on making a push to bolster the Democratic coalition with Latinos including, spending millions on Spanish-language ads, but also with ads targeting Asian Americans and then later today also youth voters, trying to get them to register to vote and shore up that support for her come November.

So the focus of a lot of the week has been on building up this coalition while she also tries to bring in or rake in those voters who might otherwise lean Republican -- Brianna.

KEILAR: She will be speaking to young voters in battleground states a little bit later, but tell us about these ads that the campaign just dropped.

ALVAREZ: Well, today, the vice president's team dropped another ad on reproductive rights, this time also featuring the song of Billie Eilish.

And that was notable because they got her endorsement earlier this week. But what has become very clear with this campaign is that reproductive rights remains one of the top issues that they think will galvanize voters and mobilize them to the polls.

We have seen multiple ads at this point focused on this very issue. And today was yet another, with specifically using personal stories. In today's case, it was a young woman who had been assaulted by her stepfather. And so it is these types of examples that the campaign is using to make their case on this issue of overturning Roe v. Wade, the vice president also weighing in on reports over the last week also related to this very issue.

So, again, they see this as a key issue, one that she also spoke about here with the Congressional Hispanic Caucus Institute. But, again, Brianna a, lot of what the vice president's team knows is going to be a challenge moving forward is continuing to gain an edge on former President Donald Trump on these issues, particularly when they are seeing some waning enthusiasm among some of the key blocs in the Democratic coalition.

KEILAR: All right, Priscilla Alvarez on the trail, thank you so much -- Boris.

SANCHEZ: Also back on the campaign trail, former President Donald Trump.

He was in battleground Michigan last night holding his first rally since that apparent second assassination attempt on his life. Tonight, Trump heads to Long Island, New York, where security preps are under way for his appearance in Uniondale.

That's where we find CNN's Alayna Treene live for us.

Alayna, obviously, supporters are already gathering behind you, but I'm wondering, why Uniondale? Why is he there?

ALAYNA TREENE, CNN POLITICAL REPORTER: Well, you're not the only one, Boris, wondering that.

I mean, we are just 48 days away from election today and Donald Trump is coming to deeply blue New York for this event. Now, we know that New York is not a battleground. Donald Trump lost the Empire State in both 2016 and 2020 by more than 20 points.

However, the former president continues to insist that he thinks he could win New York. Now, I will tell you there's been a lot of questions about some of Donald Trump's travel over the last several months. Remember, a couple months ago, he went to Wildwood, New Jersey. He's been to other states like Montana, ones that they do not consider, most people do not consider battlegrounds, nor does Donald Trump's campaign.

But when I talk to Trump's advisers about this, they say part of the visit today to Uniondale is nostalgia. Remember, Donald Trump grew up here. He loves New York. He considers himself a New York man, despite having recently moved his residency to Florida.

[13:25:05]

And they say a lot of this visit is steeped in nostalgia. Donald Trump has long wanted to do another New York rally, particularly in a large arena, like you will see tonight at this Coliseum in Nassau County, especially after he had done an event in may in the Bronx where he saw thousands of supporters come.

So that's part of this. The other part they argue, though, is that there are people in Uniondale specifically that will resonate with Donald Trump's message. They argue that there's a lot of blue-collar working-class voters here, people who are small business owners, all of them who could maybe resonate with Donald Trump's message.

But, again, you are not alone in this question of, why is he coming to this state today, Boris?

SANCHEZ: Alayna, what about security preps there? I imagine we might see more of a presence than usual.

TREENE: You're right.

When I have talked to -- I have talked to Donald Trump's advisers about this at length ever since that apparent second assassination attempt on Sunday, and they said you will likely see a lot of security enhancements. The Secret Service has been walking Donald Trump's team through this, including the former president himself.

Now, we did see some of this last night when he was in Flint, Michigan, for that town hall with Sarah Huckabee standards. But a lot of what the security enhancements look like, I'm told, when I talk to Trump's team are things that you actually can't see. That includes having more dogs to do some of the sweeps of the area, more agents on the ground, a heavier local law enforcement present.

All that expected today here as well, as Donald Trump's team and his Secret Service detail really tries to ramp up security around him and try to prevent any sort of risk on his life after already having those two apparent assassination attempts -- Boris.

SANCHEZ: Alayna Treene live for us on the trail in Uniondale.

Thank you so much, Alayna.

When we come back: P. Diddy spent the night in a jail cell, hoping a different judge today will free him on bail. We have details on the infamous Brooklyn lockup where he could spend more time if his appeal is denied.

Also ahead: The Justice Department says that cargo ship that caused the Baltimore bridge collapse was -- quote -- "an unseaworthy vessel." We have the latest details on their lawsuit against the ship's owners when we come back.

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