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Fed to Reduce Economic Stimulus; President Obama Meets With Moms

Aired December 18, 2013 - 15:00   ET

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

BROOKE BALDWIN, CNN ANCHOR: Top of hour two. Here we go, I'm Brooke Baldwin. A big announcement today affecting your wallet, the economy is improving enough that the Federal Reserve has decided to start easing back just a little bit, on economic stimulus programs here. Next month, the fed will reduce the amount of treasury and mortgage bonds it buys to $75 billion a month that is a $10 billion monthly drop, 10 billion, but the Fed is also pledging to keep short-term interest rates exceptionally low. Take a look.

(BEGIN VIDEO CLIP)

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: Today's policy actions reflect the committee's assessment that the economy is continuing to make progress, but that it also has much farther to travel before conditions can be judged normal.

Notably, despite significant fiscal headwinds, the economy has been expanding at a moderate pace and we expect that growth will pick up somewhat in coming quarters, helped by highly accommodative monetary policy and waning fiscal drag.

(END VIDEO CLIP)

BALDWIN: And we have been watching the markets. You can see, look at that, up 185 points here. Stock market definitely likes what Ben Bernanke is doing today. The announcement sending it pretty high up here, 184, once again.

Richard Quest joins me.

And so, Richard Quest, I guess this is a surprise for some folks that there's a little bit of tapering, but this is not huge tapering by any means, right?

RICHARD QUEST, CNN CORRESPONDENT: No, and there never was going to be huge tapering.

We always knew that the first move was going to be symbolic. And that's exactly what's happened today. The Fed's been buying $85 billion a month, now, a trillion dollars a year in terms of bonds. All they have done is just very, very gradually eased their foot off the gas. They're still pumping $75 billion a month into the U.S. economy.

The only question that everybody had was, would it happen now in February or -- in December, or would it be January or March of next year? And what we're seeing in the market is two things going on at the same time, firstly, that element of relief, Brooke. Whew. We no longer have to wait for the Fed. Are they, will they, now they, may they, not the -- instead, it's now.

And the second thing, of course, they're doing it because the U.S. economy is looking much better. If you...

(CROSSTALK)

BALDWIN: That's the next point, that's the next point, right, because they wouldn't be doing this if they weren't feeling we were moving in a positive direction. That's a great thing, right?

QUEST: Absolutely. If you look at the statement, and some people like me read the statement in its original form, it says taking into account the external fiscal entrenchment, improving position, that's Washington, and the committee sees the improvement in economic activity and labor market conditions.

What they're saying is the time is right to start doing a little bit less. But, of course, it is a very little bit less. The Fed is still going to be giving huge amounts of support. They admit that they will be tapering probably right the way through 2014, and interest rates -- do not expect interest rates or official rates to start going up until 2015.

Your mortgage rate, however, your car loan rate, your credit card rate, that might go up sooner. It will go up sooner.

BALDWIN: To quote my friend Paul La Monica with CNN Money, he said this is Ben Bernanke's dropping the mike moment, and I guess passing the torch to Janet Yellen pending her Senate confirmation. She would then begin at the 1st of the year.

(CROSSTALK)

BALDWIN: Richard Quest, yes, go ahead, 20 seconds. Go.

QUEST: In 20 seconds, yes, Bernanke took us into this. Bernanke has begun taking us out of this, and he leaves Jessica Yellin (sic) a clean sheet with which she can then move forward if and when she's concerned.

BALDWIN: Janet Yellen.

QUEST: I beg your pardon.

(CROSSTALK)

QUEST: That would be a promotion for one of our colleagues. Janet Yellen. If I have done that once, I should get a dollar for every time I make that mistake. Janet Yellen.

(CROSSTALK) BALDWIN: You stayed up late wishing and hoping your Mega Millions tickets would win. And, well, sorry to bring that up there. Richard Quest, thank you very much.

(CROSSTALK)

(LAUGHTER)

BALDWIN: Let's move along here because we have more news on what we just reported just a little while ago. This independent review of the NSA surveillance program is in, and this review board has come down with some new recommendations.

They say this controversial bulk collection, this is the so-called metadata collection, will remain in place, but they're recommending tighter constraints, greater transparency from the NSA. We're continuing to follow this story, of course. Our national security reporter is sitting in a briefing on this exact story right now, so as soon as we get him out of the meeting, we will update that story for you.

Now to something that is definitely making waves here in New York City. This strip search has led to a dangerous situation for Americans in the Indian capital of New Delhi. So let me back up. This started when an Indian diplomat living here in New York City arrested on charges of visa fraud, and for allegedly overworking and underpaying her housekeeper, her treatment while in custody described as barbaric by the Indian government.

So India is acting on its anger.

We have CNN's Mallika Kapur on the ground there for us first -- Mallika.

(BEGIN VIDEOTAPE)

MALLIKA KAPUR, CNN CORRESPONDENT: Here in New Delhi, authorities are retaliating.

They have asked staff who work at U.S. consulates across the big cities in India to hand in their identity cards, which basically means they're stripping them of certain diplomatic privileges such as access to lounges and airports.

They have also removes barricades, these large concrete barricades from outside the U.S. Embassy, which the New Delhi was extended as a security measure to the U.S. Embassy as a courtesy. It wasn't a diplomatic requirement, but India does insist it has not scaled back security for any U.S. diplomat anywhere in the country.

Mallika Kapur, CNN, New Delhi.

(END VIDEOTAPE)

BALDWIN: Mallika, thank you.

Here with me now, Deborah Feyerick with a little bit more.

Just walk me back. What led to this arrest?

DEBORAH FEYERICK, CNN CORRESPONDENT: This is fascinating.

Devyani Khobragade is the deputy consul general for political, economic, commercial and women's affairs. There's an 11-page criminal complaint. In it, she's charged with making false statements on a visa application for her housekeeper, now specifically saying that the housekeeper was only going to work a certain number of hours, 40 hours a week, that she would receive a fair wage, and that she would have Sundays and paid time off.

Well, apparently that didn't happen. She was working much longer hours and she was being paid significantly less. While Khobragade said she would pay her $4,500 per month, instead, she was getting about $575 per month, significantly less, and certainly far below the U.S. minimum wage.

Now, the consulate official was arrested last week. She had just taken her daughter to school. Once she was turned over to the U.S. Marshals, she was put into general population. That's when she was strip-searched and that's really what the Indian government is crying out against, saying that this should never have happened. It could have been resolved in a different way.

BALDWIN: That's what they're saying is barbaric. But at the same time, when you look at what is standard operating procedure here in New York, if you are arrested, you are searched, correct?

FEYERICK: That's exactly right. U.S. Marshals played by the book. They did exactly what they were supposed to do.

The State Department is saying she was not arrested in front of the school. She was arrested elsewhere. But again the question is that the Indians are asking is should she have been arrested in the first place, given that this really amounts to a dispute between an employer and her employee? It's sort of coming -- unraveling now in terms of what exactly happened.

BALDWIN: OK. Deborah Feyerick, thank you very much. We will see where it goes next.

Coming up, I will speak live with a mother who just left the Oval Office, left this meeting with the president who was trying to sell her on his health care rollout. Did it work? We will ask her.

Also, tragic story here. This young teenager is brain-dead in a hospital after she went in for routine tonsil surgery. Her parents are fighting to keep her on life support. Her mother said the girl has responded to her touch. Is this possible? How does this get resolved?

And NASA right now holding a news conference on the three emergency space walks necessary to save the International Space Station. Are they in any danger? Stay right here. (COMMERCIAL BREAK)

BALDWIN: OK. We told you last that the president and the first lady were meeting with moms from all around the country to try to boost the Obamacare sign-up rate. This is video just in here from this meeting in the Oval Office. And how about this?

We managed to snag one of the moms who has just walked out of the White House, stepped out of that meeting.

She's Felicia Willems. She's from Raleigh, North Carolina, and she's representing a group called MomsRising.

So, Felicia, nice to see you. Welcome.

FELICIA WILLEMS, MOMSRISING: Hi, Brooke. Thanks for having me.

BALDWIN: Let's just begin quickly with your back story. I understand your 6-year-old son was born with a pretty serious preexisting condition and you are inspired by Obamacare, right?

WILLEMS: Right.

He's 7 now, actually, but when he was born in 206, we found out within just the first couple of weeks that he need to start chemotherapy to help him fight off a benign rare vascular tumor, so he had chemotherapy for about the first year of his life and then it took us another few years to get him caught back up to normal developmentally.

Obamacare has been a big help for him in that he was born with a preexisting condition and is guaranteed health insurance now for the rest of his life.

BALDWIN: I'm glad to hear he's better, and now let's talk about the meeting. This was a group of moms. So, I'm just curious first, did you hear more from the president or did you hear more from Michelle Obama? Who did more of the talking?

WILLEMS: You know, they really allowed the moms in the group to be able to share their stories. They wanted to hear stories from moms from across the country, and they listened intently to our various stories.

It was really great to be able to share our experiences on the ground with the Affordable Care Act with the president and the first lady.

BALDWIN: So what did they say, then, in response to your stories?

WILLEMS: Very supportive, of course.

They were very gracious to us for being willing to share our stories and encouraged us to ask other families to come out and share their health care stories as well, because that's really what the Affordable Care Act is about, is about helping families across the country get health care. BALDWIN: I am hearing you talk, and set the scene of this, you know, atmosphere of inspiration, but, Felicia, I just have to ask, did any of the moms raise her hand and say, Mr. President, what went so wrong with that rollout?

WILLEMS: Well, to answer your question, no, nobody asked the president about that, but we know that there was some frustration right at the beginning, but we also know that sign-ups are soaring now and that it's only up from here. There's 60,000 people, I think he said, signed up yesterday on the Web site.

BALDWIN: You believe that in your heart that it's only getting better from here? You believe that?

WILLEMS: I do. I do, absolutely.

BALDWIN: And why is that?

WILLEMS: Well, we have been gathering stories at MomsRising from moms all across the country, and, initially, there was a little bit of frustration, but now the stories that are coming into us are from moms and young adults who are, many of which, getting health care for the first time in their life or who have preexisting conditions and weren't able to get health care previously or who have children who were coming up on their lifetime maximums who no longer have to worry about that.

BALDWIN: OK. Well, Felicia Willems, I wish you and your 7-year-old son well. Happy holidays. Thanks for stopping by.

WILLEMS: Thank you. Happy holidays.

BALDWIN: Thank you.

Coming up next, a 13-year-old girl goes in for routine tonsillectomy. She ends up brain-dead. The hospital wants to pull her off life support, but her parents, they are praying she will recover. The question we're asking is, who gets to decide to end life support when a person is brain-dead? And then you have her mom saying the girl has responded to her touch. That's next.

(COMMERCIAL BREAK)

BALDWIN: So, quick exciting update for you when it comes to that $636 million Mega Millions drawing jackpot that happened last night. We have been reporting that we know there are at least two winners, one ticket purchased in San Jose, California, the other in Atlanta, Georgia. The news, there has been a winner who has come forward in Atlanta.

We will have a news conference which of course we will take live for you in just about, oh, 25 minutes or so from now to learn more about the winner in Atlanta. They have to go splitsies. Still not nothing, as they say, quite a bit of money. We will wait to see who this individual is coming up 3:45 Eastern time. Let me move on though and tell you about this story out of California. This medical scan that a California mother begged for has confirmed the worst. Her 13-year-old daughter who went in for a tonsillectomy is now brain-dead. But Jahi McMath's heart still beats. And that's why her mom is keeping her daughter on life support. She is praying for a miracle.

(BEGIN VIDEO CLIP)

NAILAH WINKFIELD, MOTHER OF JAHI: I really do feel that she will wake up. I can't tell you if she will wake up by Christmas or before Christmas, but I'm looking for any kind of miracle for my child because I really need her at home. I have a really good daughter and she's a really big asset to the family. And I just couldn't see her not being at home.

(END VIDEO CLIP)

BALDWIN: Jahi's loved ones are praying. They're all, of course, asking, how could a tonsillectomy lead to this?

Here is CNN's Stephanie Elam.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN CORRESPONDENT (voice-over): It was a simple operation that was supposed to improve her quality of life. Instead, Jahi McMath lay brain dead just hours after surgery.

WINKFIELD: I don't even any tears no more because I'm all cried out. I'm angry.

ELAM: The 13-year-old was admitted to Oakland's Children's Hospital on December 9 for a tonsillectomy, which doctors prescribed to correct her sleep apnea. Jahi was alert after the surgery her family says, but then went into cardiac arrest after being moved to the Intensive Care Unit. The medical team worked to revive her. Blood had filled her lungs and stomach.

WINKFIELD: Nobody called the doctor until it was too late. That's the problem. My daughter drowned on her own blood.

ELAM: The next day, a C.T. scan showed that two-thirds of Jahi's brain was swollen. By Friday, further testing by the hospital confirmed that Jahi was medically dead. Her death was reported to the Oakland coroner's office, which was scheduled to take the girl's body Tuesday. But the family who wants to keep Jahi on life support, handed the hospital a cease and desist order.

CROWD: Don't pull the plug.

ELAM: Jahi's mother, Nailah Winkfield wants more time for her child to show signs of brain activity.

WINKFIELD: And I went in there and cried to this man and said, "Just check her brain one more time." I asked him, "Do you have children?" He said yeah. "Well then, you should know how it feels."

ELAM: As for the hospital, the chief of pediatrics gave CNN this statement, "We can say that, as whenever we see a medical or surgical complication, we are reviewing her case very closely. Our hearts go out to her family, and we want to support them during this extremely difficult time."

WINKFIELD: I feel her. I can feel my daughter. I just kind of feel like maybe she's trapped inside her own body and she wants to scream out and tell me something. That's why every time I go in there I let her know I would not let them take you to the coroner's office, Jahi. I won't.

(END VIDEOTAPE)

BALDWIN: Your heart absolutely goes out to this mother. Stephanie Elam, my goodness, you say in your piece the hospital is reviewing the case. How did this even happen? Do doctors have any idea how this happened to Jahi?

ELAM: That's the question everyone wants the answer to, Brooke.

And at this point, the hospital is not speaking. In fact, we have another statement that kind of updates their position on this. They're saying that because the family doesn't want them to release any details about Jahi's condition, that they cannot speak on that.

As you can see, it says here: "We have not been authorized by the family to share information with the public about this matter. Consequently, we're not able to correct misperceptions created about this sad situation."

Now, what those misperceptions may be, we won't know until more details come out, Brooke.

BALDWIN: OK. Stephanie Elam for us, Stephanie, thank you. We know you will be following that.

Coming up, we're also following this. Astronauts, they are planning emergency space walks to fix the International Space Station, but it's what happened during the last space walk that has a number of people concerned.

Plus, as we get word, President Obama is sending a delegation of gay athletes to the Olympics in Russia. I will be talking to former Olympic skater Ryan O'Meara about whether he thinks this is a slap in the face to Russia.

And as I mentioned, any moment now, lottery officials in Georgia will be holding this news conference announcing that yes, indeed, a winner has come forward. We will take it live. Stay right with me here on CNN.

(COMMERCIAL BREAK)