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Breyer Exit to Give Biden His First Supreme Court Nominee; Fed Keeps Rates Unchanged, But Signals Will Raise Rates Soon; U.S. Sends Written Response to Russian Demands; U.S. Allies Discuss Sending Troops to NATO's Eastern Flank; DOJ Investigating Fake 2020 Elector Certificates Declaring Trump Won. Aired 2:30-3p ET

Aired January 26, 2022 - 14:30   ET

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

[14:30:00]

EDWARD-ISAAC DOVERE, CNN SENIOR REPORTER: And if you look at the transcript, he was asked a question about, what's your personal motto.

And he starts talking about it then shoves in at the end of the answer, oh, by the way, I think it's time to nominate a black woman to the Supreme Court.

So he remembered that he needed to do that to following Clyburn's advice and to figure - finish out the deal that he made with Clyburn for that endorsement, which was key.

And obviously, we saw what happened after the South Carolina primary.

ALISYN CAMEROTA, CNN HOST: That is such a fascinating story.

I don't know if President Biden has also listened to the first part of that advice either from Clyburn of changing his answers.

(LAUGHTER)

DOVERE: After a two-hour press conference last week.

CAMEROTA: Maybe he's forgotten that as well.

But this brings me to the politics of this. And that is Senator Mitch McConnell was on the record, I believe it was in May, saying he is 100 percent committed to stopping the Biden administration.

Is there anything that Senator McConnell could do to obstruct this choice?

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: No. And I'm so glad you asked that. Because I wanted to make this point because we're putting all of these names on the screen.

And I just want to make clear that, you know, we've been having so many discussions about the filibuster. That is about the legislative filibuster. That's about bills and whether or not the minority, in this case, Republicans, can block it. It's not about nominees. Whether it's administration nominees or

nominees for the court. That was changed by Harry Reid when he was -- just passed away -- when he was majority leader.

It was unclear for a time whether it applied to the Supreme Court, but it does.

That's why, when I was talking in the last segment about the president thanking and Democrats thanking the people of Georgia, it's because that is what gave Democrats the gavel.

Not only the votes, even though they don't even have one to spare, but the gavel.

So what Mitch McConnell did during the Obama administration in saying that Garland wasn't going to get a hearing, he can't do that now because the Democrats control the schedule.

That is one of the most important things to keep in mind. They can get whomever the nominee is a hearing and they can get it on the floor and get the votes because you don't need a super majority.

One other thing I want to point out here is that in the slew of statements that we've been getting about the reaction to Justice Breyer's retirement.

One of the most interesting I thought was from Senator Graham, a long- time member, Republican, obviously member of the Judiciary Committee.

He effectively said, I want this person to have a fair hearing and elections have consequences.

That was very noteworthy for several reasons, not the least of which, it shouldn't have to be said, but he's effectively saying, oh, and Joe Biden won the election, which, you know, put a highlight on that sentence.

But also about the fact -- there you go, you see "Elections have consequences, and that is the most evident when it comes to fulfilling vacancies on the Supreme Court."

One of the people on the list that we have shown, Ketanji Brown Jackson, when she was approved for the appellate court, he voted for her, and as did two other Republicans.

So it's not a sure thing this is going to be a totally partisan vote.

VICTOR BLACKWELL, CNN HOST: Yes. Voted to confirm both Kagan and Sotomayor and said the same thing then, that elections had consequences --

BASH: Yes.

BLACKWELL: -- during the Obama administration.

Dana, Laura, Isaac, thank you all. DOVERE: Thank you.

BLACKWELL: We're following more breaking news. The Federal Reserve will keep interest rates where they are, but maybe not for long. We've got new details.

(COMMERCIAL BREAK)

[14:38:18]

BLACKWELL: Now to the big economic news of the day. The Federal Reserve announced it will not raise interest rates right now but signaled changes could be coming soon.

CAMEROTA: CNN's Matt Egan joins us now.

Matt, what does this mean for consumers, for Americans as a whole?

MATT EGAN, CNN BUSINESS REPORTER: Alisyn and Victor, the Fed just confirmed it's preparing for liftoff. The mission is to get inflation under control.

The Fed says it will likely be appropriate to raise rates off zero soon. That's code for probably the next meeting in March.

This is a really big deal. Not just because this would be the first rate hike in more than three years. But because it's really the most powerful way that anyone this government can push back against this really high inflation that's causing anxiety for millions of Americans.

In March 2020, as you can see on that chart, the Fed dropped interest rates to zero. It went into emergency mode for the first time since the Great Recession.

It pumped trillions of dollars into the financial system to try to save the economy from COVID. And it worked.

But now, unemployment is very low and inflation is very high. The economy doesn't really need all that support from the Fed.

The fact that rates have been at zero and they've been buying so many bonds every month, that's arguably making inflation worse.

So they're trying to pull off this really dramatic reversal in policy.

Two big things that came out of the statement.

One, the Fed says they're going to wrap up the bond buying program likely in early March. And that will set the stage for them to raise interest rates soon. Again, likely in March.

So what does that mean for Main Street, everyday Americans?

Well, it means the cost of borrowing is going to go up. It will still be cheap to take out a mortgage or use a credit card, auto loans, student loans, but just not as cheap as it's been.

[14:40:08]

And it also means good news for savers. Because it means interest rates on money in the bank will no longer be earning nothing. It will go up a bit.

And, hopefully, hopefully, that this fits the Fed's reversal here in policy is going to cool off inflation, which, again, remains very high -- Alisyn and Victor?

BLACKWELL: All right. Matt Egan, thank you.

EGAN: Thank you.

CAMEROTA: So moments ago, Secretary of State Blinken announced that had the U.S. has given the Kremlin its written responses aimed at preventing a Russian invasion of Ukraine. Blinken's message to American citizens in Ukraine, next.

BLACKWELL: But first, here are some other events we are watching today.

(COMMERCIAL BREAK)

[14:45:58]

CAMEROTA: This afternoon, Secretary of State Antony Blinken encouraged Americans in Ukraine to leave amid concerns of a Russian invasion.

Blinken submitted written responses to the security demands Russia made last week.

CNN is also learning new details about Western troops possibly deploying to the region.

BLACKWELL: Officials say the U.S. and Western allies are discussing possibly directing troops to at least three NATO countries in Eastern Europe before a potential Russian invasion of Ukraine.

The sources say the move would be a show of support against Putin.

CAMEROTA: CNN's Kylie Atwood is at the State Department.

So, Kylie, what did the U.S. say to Russia in those written responses? Do we know?

KYLIE ATWOOD, CNN NATIONAL SECURITY CORRESPONDENT: Well, the way Secretary of State Blinken described it was laying down a serious diplomatic path forward should Russia choose it. Of course, the key there is "should Russia choose it."

What is new and different here isn't the content of what the United States is saying to Russia.

As we understand it, this proposal, these written responses to Russia from the Biden administration lay out areas that the United States has repeatedly pointed to in recent weeks where they think the United States and Russia can work together.

So those are things such as the placement of missiles in Europe, arms control, things to reduce the capability for a situation to escalate.

There are areas like those where they think the U.S. and Russia can work together.

But what was also in this document are the core principles that the United States isn't going to stray from.

One of those being NATO's open-door policy, which essentially means that, someday, Ukraine could join NATO.

And that is one thing that Russia has repeatedly said they don't want to see. But Blinken made it very clear that that is not up for debate.

Listen to what he said.

(BEGIN VIDEO CLIP)

ANTONY BLINKEN, SECRETARY OF STATE: We reiterated what we said publicly for many weeks and, in a sense, for many years, that we will uphold the principle of NATO's open door. NATO's door is open, remains open, and that is our commitment.

(END VIDEO CLIP)

ATWOOD: Now, Secretary Blinken said that President Biden has been intimately involved in the process that led up to this proposal that the United States gave Russia.

Saying that the president even gave some of his own edits, demonstrating just how involved President Biden is in pursuing this path of diplomacy.

This comes, of course, though, as Russia continues to build up its military presence along Ukraine's borders.

And Secretary Blinken was very clear in saying the United States is simultaneously working to evoke incredibly high costs on Russia should they go forth with any such invasion.

CAMEROTA: Kylie Atwood, really interesting reporting. Thank you.

So today, Russia brought in a number of fighter jets to Belarus, which borders Ukraine. This is according to the Russian Ministry of Defense, which posted this video to YouTube.

BLACKWELL: CNN's Nic Robertson is in Moscow.

Nic, Russia's top diplomat talked about the West, what he calls their latest aggressive lines. What else did he hear from the foreign minister? NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, he was

speaking to the state Duma, the parliament here. And he was very clear in what he was saying.

That, at that moment, he was still waiting for these written responses to arrive from the United States and from NATO.

And he laid down very clear lines. And that if this isn't an area where he feels the United States and NATO are being constructive, then there are going to be consequences.

This is how he framed it.

(BEGIN VIDEO CLIP)

SERGEI LAVROV, RUSSIAN FOREIGN MINISTER (through translator): If there won't be any constructive response, then the West will continue its aggressive line, then as the president has said multiple times, Moscow will take appropriate response measures.

In any case, everyone should proceed from the understanding that Russia's safety and its citizens is an absolute priority. And security will be provided in any circumstance.

(END VIDEO CLIP)

[14:50:03]

ROBERTSON: So probably what you didn't quite hear there, there was actually a round of applause from the Duma when he gave that speech.

He didn't specifically say it was going to be a military response. But we've heard that before from other Russian officials, saying, if they don't get the diplomatic tract, then the only alternative for them is a legal military approach.

And I think one of the interesting details, the look at the broad picture today just a little bit here, those other nations that might take supplement U.S. and NATO troops that we talk about in Eastern Europe, Romania, Bulgaria and Hungary.

Explicitly, just five days ago, the Russian Foreign Ministry said all foreign troops should be pulled out of Romania and Bulgaria.

So the one hand, they are getting the written proposal of how they might be areas to cooperate but are getting a very deterrence clear message from NATO and the United States that Russia's demands about where NATO should deploy, they are just not going to change.

BLACKWELL: Yes, it's a very clear message with the deployment to those countries if that happens.

Nic Robertson, thank you so much.

CNN has an exclusive interview with Deputy Attorney General Lisa Monaco. Hear what she says about the Justice Department investigation of those fake Electoral College certifications and the concern over violent crime. That's coming up.

(COMMERCIAL BREAK)

[14:56:10]

BLACKWELL: We have a CNN exclusive on the investigation into the plot to overturn the 2020 election.

The Justice Department confirms its investigating those fake Electoral College certifications, which attempted to declare Donald Trump the winner of seven states that he actually lost.

CAMEROTA: These bogus certificates were signed by Trump supporters who falsely claimed to be rightful electors in Nevada, Arizona, New Mexico, Pennsylvania, Michigan, Georgia and Wisconsin.

CNN's Evan Perez broke this story for us.

Evan, how far into the investigation of the fake election certificates are they?

EVAN PEREZ, CNN CRIME & JUSTICE CORRESPONDENT: We don't have a lot of clarity into exactly how far they are going.

But, look, we know some of the former president's top ally, including Rudy Giuliani, were deeply involved in orchestrating this effort to send these fake certifications to the National Archives to declare Donald Trump a winner of these seven states that he had lost.

The fact is it's a significant thing that the Justice Department is saying they are looking into the certifications, which have raised concerns from those states.

Here is the deputy attorney general, Lisa Monaco, talking about this.

(BEGIN VIDEO CLIP)

LISA MONACO, U.S. DEPUTY ATTORNEY GENERAL: First, the issue you raised in terms of fraudulent electorate certifications have been received. We've received those referrals. And prosecutors are look at those. And I can't say anything more on ongoing investigations.

More broadly, look, the attorney general has been very, very clear. We're going to follow the facts and the law wherever they lead to address conduct of any kind and at any level that's part of an assault on our democracy.

(END VIDEO CLIP)

PEREZ: Alisyn and Victor, obviously, we know several of these states made referrals to the Justice Department. And we've heard from them. They say they're gratified that the department is looking into this.

BLACKWELL: I know this was a pretty wide-ranging discussion.

You also spoke to the deputy A.G. about crime in America. What did she say?

PEREZ: This is big issue now for this administration. We know that there are a number of cities around the country that are reporting murder rates like they've never seen before.

And so the department is now pushing out -- she told us yesterday, she told us that $139 million is being sent over to fund 1,000 police officers in 180 police departments around the country.

But This is an issue that is very close to her heart. And here is what she had to say about it.

(BEGIN VIDEO CLIP)

MONACO: What we are doing is trying to support state and local law enforcement in every way. And that means adding cops to communities, making sure that they are working in the communities, walking the beat, building trust in the communities.

And what we've seen is that the guns we're recovering at crime scenes in violent crimes haven't originated in those cities, in those communities where we're recovering the guns. They are coming in from elsewhere.

(END VIDEO CLIP)

PEREZ: Alisyn and Victor, one of the important things she also mentioned was the fact that, obviously, with rising crime, now is not the time to defund police.

Which, of course, is one of the criticisms you hear from the left on -- in reaction to the death of George Floyd.

That's one of things this administration is now trying to push back against.

CAMEROTA: Evan Perez, really interesting interview. Thank you.

PEREZ: Thank you.

ANNOUNCER: This is CNN breaking news.

BLACKWELL: Top of a brand-new hour now. It's good to be with you. I'm Victor Blackwell.

I'm Alisyn Camerota.

Let's get to our breaking news. A source tells CNN that Supreme Court Justice Stephen Breyer plans to retire.

[14:59:58]

This decision will give President Biden a chance to make his first nomination to the bench.