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Steve Anderson is Interviewed about Iran; DOJ Opens Investigation into Powell; Trial Begins for Brendan Banfield. Aired 9- 9:30a ET

Aired January 12, 2026 - 09:00   ET

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

[09:00:00]

CLARE DUFFY, CNN TECH REPORTER: Images, explicit images, often of young people if they don't send money, or more images.

This online training course is meant to be a resource for people to learn about this type of harassment. And I asked Elliston what she learned from her experience that she's incorporated into this training course. I spoke with her and her mom, Anna McAdams.

Take a listen to what she told me.

(BEGIN VIDEO CLIP)

ELLISTON BERRY, DEEPFAKE SAFETY ADVOCATE: All of the individuals, all of the victims understood what was going on, but we couldn't do anything. And when we went to our administrator, we went to our teachers and -- looking for help. They were more confused than we were. They weren't able to offer any sort of comfort, any sort of protection to us. So, that's what this curriculum is so important, and that's what it really focuses on, is it really advances and it focuses on the administrators, focuses on -- it focuses on the educators so that way they are able to protect and they're able to help if a victim were to come to them for a situation like this.

(END VIDEO CLIP)

DUFFY: And importantly, this training course also discusses the Take It Down Act, this law that was signed last year that makes it a crime to share non-consensual, explicit images, real or A.I. generated. So, of course, that is an important protection for victims of this kind of crime. But, unfortunately, hasn't done away with this type of harassment altogether.

JOHN BERMAN, CNN ANCHOR: No, not at all. All right, Clare Duffy, thank you so much for that report.

Brand new hour of CNN NEWS CENTRAL starts right now.

KATE BOLDUAN, CNN ANCHOR: The breaking news, Iran says it's ready to negotiate with the U.S., but also says it's basically ready for war. President Trump says he's now considering U.S. military action there, as the massive protests continue. Markets, they open this hour, as unprecedented is the word again today. The Fed chair now under criminal investigation. That chairman saying this isn't about a construction project. It's really about attacking the independence of the nation's central bank.

And prosecutors say he was having an affair with the au pair. Then his wife and another man were found murdered in his home. Today, jury selection begins in the case of a tragic double murder.

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

SARA SIDNER, CNN ANCHOR: Military action or negotiation or both. Breaking overnight, the death toll is climbing in Iran amid the enormous and explosive nationwide protests. Now, President Trump says he's weighing his options to get involved, including possible U.S. military action. Iran's state TV released these new images from today, saying they show pro-government protests. But, in reality, the anti- government protests have spread across all 31 of Iran's provinces. And that's really shaken the country. These protests, now entering a third week, are the biggest challenge to the regimes power in years. Iran's security services are violently cracking down. According to human rights group, at least 544 people now have been killed and more than 10,000 people arrested over just the last 15 days. Now, President Trump saying now he's considering, quote, "very strong options," including using the military against Iran. And, he says, the pressure has led to Iran to reach out about nuclear deal talks. Tensions are drawing reaction on Capitol Hill. Last hour we asked Democratic Senator John Fetterman if he wants to see U.S. military action in Iran. And Fetterman told our Kate Bolduan, who often bucks his party line, this.

(BEGIN VIDEO CLIP)

SEN. JOHN FETTERMAN (D-PA): Sure. Absolutely. And now, if it continues to make more sense, absolutely. I think I was the only Democrat that fully supported our strike of their Iranian nuclear facilities last year.

Now, you have that poisonous regime now in spiral. So, why -- why wouldn't we want to support that and those -- those brave protesters?

(END VIDEO CLIP)

SIDNER: CNN's Alayna Treene is live at the White House for us this morning.

What are you learning about what the president is considering? He said there are some strong options the last we heard.

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Yes, that's right. He kind of confirmed yesterday when speaking to reporters, Sara, on board Air Force One, what we've been reporting throughout the weekend, which is that he's seriously considering potential military action against Iran as the number of protesters going against the Iranian leadership and government are continuing to, you know, pile up, the deaths of these protesters. And Trump, I should remind you, has been threatening this type of action for months now. The first one was actually a day after the new year, when he said that the U.S. would look at intervening potentially with the military.

Now, we also have reported, according to several U.S. officials I've spoken with, that the president has briefed on a number of options for potential intervention with these protests. Some of them, again, are military options. Things like strikes. But others are nonmilitary action.

[09:05:02]

I'm told that some of them have been, you know, potential cyberattacks or looking at sanctions on Iran to try and get them to really tamp down on their crackdown of the Iranian people who are protesting.

Now, I will also say, there has been some concern among some top administration officials that they've been discussing all of this about what military, specifically direct U.S. military action involvement inside Iran could lead to. Some are worried about the retaliation, of course, from Iran, which said that they would retaliate heavily against U.S. based assets abroad. But then also this idea of potential military strikes could lead to kind of galvanizing the Iranian people behind the Iranian leadership. And so there's a lot of different things that they are considering through all of this.

And then one of the most interesting and notable things that the president told reporters yesterday when traveling back to Washington was that he had spoken with the Iranians, or at least they had reached out, I should say, to the Trump administration, and that they're looking to get a meeting on the books.

Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They called yesterday. Iran called to negotiate. Yesterday. The leaders of Iran called. They want to negotiate. I think they're tired of being beat up by the United States

(END VIDEO CLIP)

TREENE: So, the president also said that we may have to take action. He said we may have to act because of what's happening before the meeting. So, all of this is kind of, you know, uncertain of where the president is, is going to move here. But I will say, he has a meeting scheduled for tomorrow with top members of his national security. He's supposed to get a further briefing on all of the developments coming out of Iran. And so we're staying tuned for that.

But increasingly, from my conversations with people in that building behind me, Sara, the president is very much wanting to act and make good on some of the threats against Iran. It's all just a question of what that could be and whether or not he actually will do so. SIDNER: Yes, it's all really interesting. We just talked to an analyst

that said that people there in Iran believe that there will be some sort of action from the United States. I'm talking about the people on the ground. We will see what happens here. It is a tense situation nonetheless. Alayna Treene, thank you so much for your reporting there from the White House for us.

Kate.

BOLDUAN: And joining us right now is retired Army Brigadier General Steve Anderson.

It's good to see you.

So, President Trump says he's considering military options in Iran now. What do military options look like here, do you think?

BRIG. GEN. STEVE ANDERSON, U.S. ARMY (RET.): Well, the president is doing everything he can to win that Nobel Peace Prize, isn't he, Kate. But, I mean, the military options that he's probably considering, and I wouldn't be surprised if he used that, is probably using F-22s at an IUD (ph) air base, which is right across the Persian Gulf. He's also got B-52 bombers and B-2 bombers stationed in Diego Garcia that we've been using to attack in Syria. They could be there in about -- they're about 2,300 miles away. He can also do an air bridge of B-2 bombers, like we did during the 12-day war against Iran, all the way from Whiteman Air Base to 8,000 miles into Tehran to attack military targets and command control nodes. Cruise missiles, potentially, from the USS Florida, USS General -- Georgia, that my understanding is they may be in the Persian Gulf, although, of course, where they -- where they actually are located is classified. And then you might be able to do some drone strikes from places like IUD (ph) and Syria. But, I mean, those are the options that he's probably considered. And I wouldn't be surprised if he chooses one of them after all the rhetoric that he's been saying recently.

BOLDUAN: I gather from you, though, you think it would be ill advised for the United States to get involved.

There are sources, General, telling CNN that there are concerns inside the administration that military strikes now could backfire, undermine the protests. The concerns being, our reporting is, that the strikes could have an unintended effect of actually rallying the Iranian people to support the government or lead Iran to retaliate with military force of its own. Do you see that?

ANDERSON: Absolutely. I mean I still remember back in 1979 when, you know, the Iranian regime came into power. You know, we were established as the great Satan. We're still the great Satan. And, you know, for us to attack them unilaterally without some kind of a coalition could potentially rally the troops, rally around the flag, and stop the direction from (ph) going.

Now, look, I mean, right now Iran is on a death spiral. If you look at what's happened over the last year, you know, the leaders being taken out of the -- losing Syria, losing Gaza, all the work in Lebanon to take out Hezbollah, the, of course, the 12-day war that was conducted against them back in June by Israel and the United States. I mean, they are headed downhill fast. And I think we just need to let this play out because they're on a death spiral right now, and I think that they're going to collapse internally if we let it -- we give them enough time to do that.

[09:10:05]

BOLDUAN: General, what are you watching for to see or gauge if this really is a moment of change when it comes to these protests that are now going into a third week, or if the regime is going to be able to successfully once again crackdown on dissent?

ANDERSON: Well, I'm watching how they react, how the protesters react in light of the fact that they don't have internet connection right now. How much video is going to actually get out. You know, they've talked about getting Starlink in there, but, of course, that would gain -- comes with a lot of risks internally as well.

But I'm looking at the mood of the country. It looks to me like it's headed in the right direction. Like I said before, it's on a death spiral. As David Ignatius wrote in "The Washington Post" yesterday, I think we just need to let this play out and see what happens. And I think it's going in the right direction for the United States.

BOLDUAN: Yes.

Brigadier General Steve Anderson, thank you so much for coming in. I really appreciate it.

John.

BERMAN: All right, breaking overnight, the story that has rocked Washington and Wall Street. The Justice Department is launching a criminal investigation into the Federal Reserve and its chair, Jerome Powell. Prosecutors say they're focused on his June testimony before Congress about the Fed's renovation of its D.C. headquarters. A spokesperson for the department told CNN, the attorney general wants to, quote, "prioritize" investigating any abuse of taxpayer dollars. But the Fed chair, Jerome Powell, says, this is about something completely different. An extraordinary video he put out overnight. Powell said, this is all about the Trump administration and the president's pressure campaign over Fed independence and interest rates.

(BEGIN VIDEO CLIP)

JEROME POWELL, FEDERAL RESERVE CHAIRMAN: The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation.

(END VIDEO CLIP) BERMAN: All right, so one Republican senator, Republican, Thom Tillis, seemed to side with Powell, saying it is now the independence and credibility of the Department of Justice that are in question.

I want to take a quick look at market futures before the opening bell. You can see the market's down a little bit. The Dow down a little more than half a percent. The S&P down nearly three quarters of a percent. No, sorry, S&P down nearly half a percent. The Nasdaq down nearly three quarters of a percent.

All right, with us now, CNN senior legal analyst Elie Honig and CNN anchor and business editor at large Richard Quest.

Gentlemen, there are really two separate things here. And I also feel like we're going to have like two separate concurrent discussions here, but I'm lucky to be doing it with two of the best.

Richard, legal stuff aside.

RICHARD QUEST, CNN ANCHOR AND BUSINESS EDITOR AT LARGE: Yes.

BERMAN: Just talk to me, what this is about. What this felt like for you when you saw the news break overnight.

QUEST: This is the emperor's new clothes. Jay Powell yesterday basically told us that the emperor was naked. Having had this announcement about the investigation into the Fed chair, Powell came out and declared war, or rather the administration declared war and Powell has now enjoined it because it's really about interest rates. It's who controls monetary policy. Whether the markets go up or down, it's not really the core issue on any given moment or any given day.

The question is the independence of the Fed. And you have to see it in context. A new Fed chair to be announced. Lisa Cohen (ph), of course, has been attacked and they're trying to get her off the Fed board. Put it all together. This is just one more example of the administration's determination to question the Fed's independence.

BERMAN: And when you saw Powell release that video.

QUEST: Extraordinary. But he admits it in his video last night. He says this is unprecedented. He admits that what he is doing we've never seen before and takes us into uncharted territory.

BERMAN: So, I said there are really two discussions here.

QUEST: Sure.

BERMAN: What this is likely really about, which is what we just talked about, Richard, and then the actual legal case. And I want to bring in Elie Honig for that here.

So, you know, the government sort of suggests this is about Powell's testimony before Congress, about Fed renovations and whether he perjured himself there. Again, just on that notion, what would those charges be and how hard would they be to prove? ELIE HONIG, CNN SENIOR LEGAL ANALYST: Well, John, perjury charges are

much harder to prove, I think, than people often realize. If you are going to bring a successful perjury case, the prosecutor has to show, first of all, direct, objective, false testimony. And you have to show that that testimony was given falsely, intentionally. So, it's not enough to show that an answer -- and I don't know exactly what they're looking at that Jerome Powell said here.

[09:15:03]

But it's not enough for prosecutors to show that an answer was ambiguous. It's not enough to show that an answer was misleading. It's not even enough merely to show that an answer was false. You have to show a direct, specific answer that was intentionally false. And so, there's always a lot of talk and speculation about perjury charges, John, but that's the reason why actual, successful perjury prosecutions are way more rare than the talk would suggest.

BERMAN: Richard, you seem to be jumping at (INAUDIBLE).

QUEST: Yes, but what -- to take Elie's point, regardless of how this plays out legally, the damage is done.

BERMAN: Right.

QUEST: Because the checks and balances in the U.S. administration of executive, legislative and judicial are clearly not working. Therefore, de facto, from the Trump point of view, game done.

BERMAN: Got what he wanted already?

QUEST: Absolutely. He's already questioned -- he's already thrown -- he's already got Elie and me discussing the legality and the markets and the wisdom of the whole thing.

BERMAN: You know, and, Elie, how could the history here factor into it. And by the history, I mean, President Trump very publicly being extraordinarily critical of Jerome Powell and using all kinds of things over the last several months.

HONIG: So, that exact history could come back to haunt a prosecution if there ever is a day where Jerome Powell is indicted because Jerome Powell, like Jim Comey and Letitia James already, if he were to be indicted, he surely would raise a motion to dismiss the case based on what we call vindictive prosecution.

Now, it's really hard to succeed on those arguments as a criminal defendant, John. However, Jerome Powell would clearly have plenty of ammunition here. And by the way, what a vindictive prosecution defense means is, I am being singled out and I'm being prosecuted as political payback for an exercise of my rights for something I've said or done publicly. And so, what Chairman Powell said in his video last night, I think, is right on point there, and I think is laying the foundation for if there does come a day where he gets indicted, I promise you he will make that argument, that defense argument. And as much as it's hard to win it, I think he's got a fairly good basis for it. BERMAN: Richard, how uncomfortable could Jerome Powell make the

president's life in the coming months? In his remaining five months as Fed chair, and (INAUDIBLE) two years on the Fed board if he wants to.

QUEST: Well, if you look at the last voting of the Fed on interest rates, the Fed is split. If they maintain their mandate, they won't move in rates before he has to go. He can't do that much. The president can make Powell's life far more uncomfortable than Powell can for the president at the moment because interest rate courses by the FOMC. We know where everybody stands at the moment. We know what the data is looking like.

BERMAN: Richard Quest, Elie Honig, great to have you both on this morning. Thank you very much.

Sara.

SIDNER: All right, happening today, the first court appearance after police make an arrest in the killing of a dentist and his wife. The murder suspect, the ex-husband. How police found him after a ten-day manhunt.

And breaking this morning, thousands of nurses now on strike in New York. The city's largest nursing strike in history. What they want before they will agree to return to work.

And a celebration for Dolly, as big as her hair. What we're learning about her 80th birthday at the Grand Old Opry.

(COMMERCIAL BREAK)

[09:22:58]

SIDNER: This morning, jury selection is set to begin in the double murder trial of a Virginia man accused of plotting with his (INAUDIBLE) au pair to kill his wife. Brendan Banfield is accused of stabbing his wife after carrying on a month's long affair with the au pair. Prosecutors say in an elaborate plot to get his wife out of the picture, he is also accused of killing another man. Prosecutors say Banfield and his mistress conspired to lure a man to the couple's home, then staged the murder to look like self-defense from a home invasion. Banfield has pleaded not guilty.

CNN's Jean Casarez joining me now with all of the insane twists and turns of this case.

Go for it, because there is a lot to get through.

JEAN CASAREZ, CNN CORRESPONDENT: Jury selection beginning probably as we speak. This is the same courthouse as the Johnny Depp trial, Fairfax County, Virginia. Same courtroom.

SIDNER: Wow.

CASAREZ: Same judge as the Johnny Depp trial. But a very different trial. This is a double murder trial. Brendan Banfield was an IRS agent. Very respected IRS agent. His wife,

Christine, she was a pediatric nurse. They had a little girl. And in 2021, they hired an au pair from Brazil, Juliana Peres Magalhaes. And she came and started to take care of the little girl.

Well, about a year later, Brandon said to the au pair, according to prosecutors, I got to get rid of my wife because I want to be with you. So, prosecutors say that he figured out this plan where he acted like he was -- his wife Christine, created an account purportedly from Christine, his pediatric nurse wife, but he did it, saying, I want an escort to come to the house for me, Christine. And I want them to be a certain type. And so, what Brandon, according to prosecutors, picked out was a man to come, Joseph Ryan was his name, and he used a knife as part of the role playing.

So, in February of 2023, Joseph Ryan comes, gets into the house, goes up to the master bedroom.

[09:25:01]

Christine's still asleep. He shuts the door and then Brandon and the au pair go up to the bedroom, and according to prosecutors, Brandon takes out his service revolver, shoots Joseph Ryan in the head, takes the knife that he had brought with him. And what's on a knife, purportedly? We'll see if this comes into play. But it would be the DNA of Joseph Ryan, right? But he starts to, Brandon, the husband, starts to, according to prosecutors, stab his wife in the neck. The au pair doesn't believe that the escort is fully deceased, and so she takes her gun and shoots him again.

Time goes on. Finally, they're both arrested. But the au pair comes clean. She talks to prosecutors and investigators, tells them the whole story. She pleaded guilty to involuntary manslaughter. It's a good deal for her. She should be the star witness for the prosecution. But the defense says, I'm not guilty. The au pair is making this all up. And I had to kill Joseph Ryan in self-defense because he, the escort, started to stab my wife to death.

SIDNER: The credibility of the au pair is going to be huge here. But what a case that unraveled here.

CASAREZ: Yes.

SIDNER: Jean, I know you'll be watching it all. Speaking of which, starting tomorrow --

CASAREZ: Yes.

SIDNER: You're going to provide continuous coverage on this trial. You can watch it live on CNN All Access.

CASAREZ: That's right.

SIDNER: Do appreciate you coming on this morning.

CASAREZ: Thank you. SIDNER: All right, Kate.

BOLDUAN: So, we are just minutes away from the opening bell on Wall Street. Take a look at market futures right now. There it is, my friends. One thing being watched very closely, how markets react today to the fact that the Fed chairman is now facing a criminal investigation by the Justice Department, and also big names like Citigroup, American Express expected to feel the pinch after President Trump called for a 10 percent cap on credit card interest rates.

We'll be right back.

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