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U.S. Economic Growth Slows; Moderna Seeks COVID Vaccine Authorization For Kids Under 6; President Biden Asks Congress For $33 Billion in Ukraine Aid. Aired 1-1:30p ET

Aired April 28, 2022 - 13:00   ET

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

[13:00:00]

JOHN KING, CNN HOST: "STANLEY TUCCI: SEARCHING FOR ITALY," the new season premieres Sunday night 9:00 p.m. Eastern and Pacific right here on CNN.

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Ana Cabrera picks up our coverage right now.

ANA CABRERA, CNN HOST: Hello, and thank you for joining us. I'm Ana Cabrera in New York.

It was nine weeks ago today that Russia launched an unprovoked war on Ukraine, and the Kremlin is escalating both its attacks and its threats. Vladimir Putin vowing to retaliate against any country that tries to interfere, and many analysts believe it's another implied threat of nuclear weapons.

A short time ago, President Biden announced he will ask Congress for $33 billion in aid for Ukraine, as this war enters a new phase. The president also wants a legislative package to seize property from Russian oligarchs and Putin's enablers.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: And it's going to ensure that when the oligarchs' assets are sold off, funds can be used directly to remedy the harm Russia caused in their help -- and help build Ukraine.

(END VIDEO CLIP)

CABRERA: Now, a short time ago, NATO's secretary-general predicted this war could drag on for months or even years.

For people living in the war zone, the attacks seem relentless.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Basement. Basement.

UNIDENTIFIED MALE: Basement. Let's get into the basement.

(END VIDEO CLIP)

CABRERA: A CNN crew scrambles for safety as Russian forces intensify their attacks in Eastern and Southern Ukraine.

This morning, the U.N. secretary-general visited a mass grave. This is in Bucha. And then he had meetings with Ukrainian President Zelenskyy.

Let's go straight to CNN's Scott McLean in Lviv.

Scott, what can you tell us about that meeting?

SCOTT MCLEAN, CNN INTERNATIONAL CORRESPONDENT: Hey, Ana.

We understand that. President Zelenskyy did meet with the U.N. secretary-general, Antonio Guterres, and they are holding a press conference that's either happening now or due to begin very soon. And we're just waiting for any kind of meaningful information to come from that press conference.

So far, we have gotten very little information. But something to watch for, of course, is that the U.N. secretary-general would like to come out of this meeting with something tangible. He left Moscow on Tuesday with at least an agreement in principle from the Russian president to try to work with the United Nations and the Red Cross and the Ukrainians to facilitate evacuations of civilians trapped in Mariupol, including those who are trapped under the Azovstal steel plant.

Troops in Mariupol have been warning about the situation, saying that some 600 troops are wounded. And then, of course, there are hundreds of civilians, they say, trapped there as well. And they're warning that people will die, simple as that, if something isn't brokered, if things don't change, and change in a hurry.

The Mariupol mayor says conditions in his city are medieval, so medieval that he's worried about the spread of diseases like cholera, dysentery, E. coli because of the awful sanitation conditions and also because of the bodies that have been uncollected, and now the rising temperatures in the city as well.

And so Guterres said previously last night that he would like to have a situation between the Russians and Ukrainians where neither side can blame the other for what happens. We will see if he can make that happen, Ana.

CABRERA: And yet this is not an equal footing that we're talking about in terms of who's at fault here. We all know that it was an unprovoked invasion.

Scott, I understand you also have new reporting out of the southern city of Kherson? What have you learned?

MCLEAN: Yes, that's right.

So the Ukrainians have acknowledged that, around the city of Kherson, this important southern city, that the Russians have made some modest territorial gains in the direction of Mykolaiv. Mykolaiv, of course, is a very strategic city in the southern part of the country.

If the Russians were to be able to control that city, then they could finally move West toward Odessa, or, potentially, they could move back up toward Kyiv, where they have, of course, previously retreated from.

But what is most interesting in Kherson is what is happening with the local government. The Russians have taken over control of it, to the point where they have announced that, starting this Sunday, they will begin a transitional phase to start using the Russian ruble and start to phase out the Ukrainian hryvnia, the currency that has obviously been in use for a long time there.

There has also been these strikes. Russian state media is blaming these overnight strikes on Ukraine, saying that they were aimed at the TV broadcast facility. That makes sense, considering that Russian channels are the only ones available now in that city.

And it seems like the Russians are doing everything they can to wipe out the Ukrainian identity and turn this city effectively into a part of Russia, so much so that they're even -- according to Ukrainian officials there, they're even threatening educators in that city, essentially demanding that they turn over educational equipment, educational materials to Russian troops.

[13:05:19]

This is something that the American ambassador to the OSCE warned about earlier, saying that the United States believes that this kind of thing that we have seen -- that we're seeing happening in Kherson is going to happen in other cities, also warning of these sham referendums that we have also seen back in 2014 of citizens supposedly voting to join Russia -- Ana.

CABRERA: Scott McLean, thank you for your courageous reporting. Stay safe there.

Joining us now is Matt Miller. He's the special adviser for the White House National Security Council.

Matt, thanks for taking the time.

President Biden announced today that he is asking Congress for another $33 billion in funding for Ukraine. How does this move the needle in the battle?

MATT MILLER, SPECIAL ADVISER ON COMMUNICATIONS, NATIONAL SECURITY COUNCIL: Well, Ana, as you noted, we have been flowing security assistance in at an unprecedented pace to Ukraine.

That started before the invasion. And we have accelerated it in the last few weeks to account for the shifting front and the battle that we expect to dominate in the weeks and months to come. That's the battle in the east, as we have seen Russia fail in Kyiv and then redeploy and prepare to launch an attack in the Donbass.

And so what we -- what this request the president is sending up to Congress today is for is really for the next set of equipment, for the next set of armor, the next set of artillery, the next set of defenses that we can get into the Ukrainians' hands, so they can continue to defend their country and try to repel the Russian attack across -- back across the border.

CABRERA: How long do you expect that to last once it does get into Ukraine?

MILLER: Well, I will say that this request is to cover the next five months. It's through the end of the fiscal year.

There was a $3 billion bill Congress passed a couple of months ago, and we got that assistance into the country as quickly as we possibly could. The Pentagon moved it really at a record pace. And if Congress acts quickly to grant us this new tranche of funding, we will do the same thing to get security assistance into Ukraine, into the hands of the Ukrainian military as quickly as we can.

But this funding package is also designed to set them up for the long haul. This is to supply the Ukrainian military for the next several months in a fight that we do believe could go on for some time, unfortunately.

CABRERA: Months, years, even according to NATO's chief today.

The U.N. secretary-general is meeting with President Zelenskyy there in Ukraine. But, yesterday, he said the war in Ukraine will continue until Russia decides to end it, and that this war will not end with meetings.

At this point, do you think these meetings are actually accomplishing anything?

MILLER: Look, we are supportive of any of our allies and partners trying to reach a diplomatic solution, as long as it's a diplomatic solution that is coordinated with the Ukrainians.

We have made clear it's the Ukrainians who are fighting to defend their country. They need to be at the forefront of any diplomatic negotiations. They have had direct talks with the Russians. Unfortunately, it seemed clear from the outset and it seems clear today that Russia is not interested in a diplomatic solution.

While they do seem -- they do -- they do carry on talks from time to time, those seem to be a fig leaf to give cover to renewed military offensives. So what we will do is to continue to pursue the strategy that we have put in place from the beginning, number one, to get security assistance into the hands of the Ukrainian, so they can repel the Russian army, and, number two, to enact severe economic measures, sanctions, export controls to put pressure on the Russian economy and weaken their ability to project power into Ukraine and abroad.

We believe that that two-part strategy is the best thing we can do to strengthen the Ukrainians' hands on the battlefield, and eventually at the negotiating table.

CABRERA: About the economic angle there, we saw Russia cut off gas now to Bulgaria and Poland because they wouldn't pay in rubles.

Now we're learning Germany and Austria, some of Russia's biggest natural gas customers in Europe may actually accept Putin's payment terms. So, isn't this a win now for Putin? Did his strategy to get Europe to sort of fall into line work?

MILLER: You know, I think we will wait to see what actually happens.

The Bulgarians and the Poland -- Bulgaria and Poland have both been firm in rejecting Russian demands. We have seen the European Union say that they're not going to pay in rubles either. So I think we will wait and see -- and see how this develops.

What I will say is, the United States has been clear. We have been a leader in this forefront in banning the imports of Russian oil and Russian gas. At the same time, we have recognized that our European partners are in a much different situation. They don't produce the same amount of oil and gas that we do. And they're much more dependent on foreign imports.

So what we have tried to do is to accelerate the delivery of liquid natural gas from the United States to the Euro -- to Europe to lessen their dependence on Russian oil and Russian gas in the short term, while we try to break their dependence over the long term.

But, unfortunately, that is not something that can happen overnight.

CABRERA: Some territories in Eastern Ukraine and fallen to Russian forces in recent days. We heard Scott's reporting on the Kherson region and how that government is actually moving into Russian currency.

[13:10:06]

We have seen the atrocities in places like Bucha, the horrific reporting out of Mariupol. What is the administration's assessment right now of how this war is going for Ukraine?

MILLER: So, I will say that Russia has failed in its overall objectives. And you have seen them retreat precisely because they have failed.

Let's not forget where we were two months ago. The Russian objective was clear. Their plan was to rush into Ukraine, to try to take control of that country, possibly within as -- possibly as quickly as within a month, to topple the Zelenskyy government and to control, if not all, most of Ukrainian territory. They have failed in that objective, and they have withdrawn.

Now, clearly, they're preparing for a new offensive. And I think what we should expect to see is that the Russians will win tactical battles. They may take towns. They may move the line of contact forward, and we may see the light of contact then move back, as the Ukrainians counterattack.

This does hold the potential to be a war that goes on for some time. So, what we can do as the United States is to continue to support the Ukrainian people and to continue to support the Ukrainian military. And we are confident that Russia will fail in its overall objectives. They will not be able to subjugate the Ukrainian people long term.

And we're going to support the Ukrainians for as long as it takes.

CABRERA: There was a discussion on Russian state TV around the possibility that this war ends with a nuclear strike.

And one of the hosts basically said that is likely, but that Russians -- quote -- "will go to heaven," while others -- quote -- "croak."

Matt, it sounds like they are preparing Russians for the possibility of nuclear war and trying to convince Russians that that is acceptable. What do you make of this?

MILLER: Look, you have from the beginning seen extremely hyperbolic rhetoric on Russian state TV.

I'm not going to speak to that. I will speak to the statements that have come out of the Russian government. They have made what we consider to be dangerous and unacceptable statements about the possibility of nuclear war. We have continued to encourage them to de- escalate their rhetoric and speak as a responsible nuclear power.

What I will say is that we have made clear from the beginning that, when Russia takes -- we have been clear from the beginning that there will be consequences for all of Russia's actions. But President Biden made clear to President Putin even before this invasion that if Russia did launch this war, we would respond and we would respond forcefully.

We have made clear that, if they launched an attack on NATO territory, we would defend NATO territory. We hope that the Russians will continue -- will de-escalate their rhetoric and stop behaving irresponsibly. But we, of course, will prepare for every scenario and we will defend the United States and defend our allies and partners, as is required.

CABRERA: But, quickly, if you will, if the Russian state TV is considered Putin's puppet, is that what he's thinking?

MILLER: Well, one of the things we have tried not to do from the beginning is to put ourselves in Vladimir Putin's head. All we can do is make clear the choice -- that if he pursues dangerous and reckless choices, that there will be consequences for him. We have backed up those words with actions from -- since the beginning of this invasion, and we will continue to do so.

CABRERA: Matt Miller, I really appreciate your time. Thank you so much for joining us.

MILLER: Thank you.

CABRERA: Moderna just became the first drugmaker to ask the FDA to OK its COVID vaccine for kids under 5. So, just how safe and effective is it? We will show you the data.

Plus, the U.S. economy just logged its worst quarter in nearly two years. Is it a one-off, or are we heading for a recession?

You're in the CNN NEWSROOM. Don't go away.

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CABRERA: Parents, this one is for you.

If you have young children, the long wait to get them vaccinated against COVID may be almost over. Today, Moderna announced it has asked the FDA to authorize its vaccine for children 6 months through 5 years old. The company says its data, mostly from the Omicron wave, shows this vaccine safely protected kids from COVID.

CNN senior medical correspondent Elizabeth Cohen joins us now.

Elizabeth, tell us about the effectiveness of this vaccine.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Ana, do you remember when these vaccines were first authorized at the end of 2020 for adults, they were like 95 percent effective?

I'm going to tell you this right now. That is not this. There is not that kind of efficacy for these little children. So let's take a look at what the numbers are from Moderna. So, what Moderna says is that for children ages 6 months until 5 years, when you look at 6 months until 2 years, there was 51 percent efficacy against symptomatic COVID, in other words, to keep these children from getting sick with COVID.

When you look at ages 2 to 5, it was 37 percent efficacy. And while that's not great, it did produce antibodies. They could tell that. And, also, it's probably even more effective against what really matters, which is keeping your child out of the hospital and keeping your child alive.

But there's a twist here that's really important. Pfizer is also working on a vaccine for children this age. And Pfizer's vaccine is going to be three doses. What I just showed you is two doses for Moderna. It is possible that Pfizer's vaccine could be more effective.

And Dr. Anthony Fauci has expressed reluctance to have both vaccines out there. He says, I -- he doesn't want parents and doctors getting confused. One is a two-dose vaccine. One is a three-dose vaccine. It is possible that the FDA will choose to go with one or the other.

But in the meantime, let's take a listen to the chief medical officer from Moderna. He spoke with CNN this morning.

(BEGIN VIDEO CLIP)

DR. PAUL BURTON, CHIEF MEDICAL OFFICER, MODERNA: We have submitted here in the United States. We will be submitting to other major regulators around the world.

I think regulators, the FDA, public health organizations recognize an unmet medical need here. They will obviously do their very, very thorough review, as they always do. But I think there is a general feeling to move fast.

(END VIDEO CLIP)

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COHEN: Now, we just heard him talk about a very thorough review by the FDA, Ana.

It will be really interesting to see whether the FDA convenes its committee of outside experts. They don't have to. They don't always do it with these vaccine applications. If they don't, I think they will come under a lot of fire, experts telling me, look, these are very little children. There's a lot of sort of confusing data out there. The experts need to sit down and look at it -- Ana.

CABRERA: So, we have seen this process play out many times now.

An emergency use authorization request typically means a vaccine will be available within six weeks or so. That might not be the case this time?

COHEN: It might not be the case, Ana, because another thing that Dr. Fauci has said recently is that he wants Pfizer and Moderna possibly to be reviewed together.

Pfizer hasn't actually officially filed, applied for an EUA. So that might take a little bit of time -- Ana.

CABRERA: Elizabeth Cohen, as always, thank you.

COHEN: Thanks.

CABRERA: The U.S. economy just took a bigger-than-expected hit.

For the first three months of this year, economic activity declined at an annual rate of 1.4 percent. That is worse than what analysts predicted. And it is the weakest showing since the pandemic started pummeling the economy two years ago.

Let's get right to CNN's Matt Egan.

Matt, worse than expected, but it's not like anyone was expecting a really great first quarter, right?

MATT EGAN, CNN REPORTER: That's right, Ana.

We knew a slowdown was coming. This blockbuster growth from last year, 6 percent-plus, that was just not sustainable. What we didn't anticipate was an outright contraction. But that's what we got. Now, this was an ugly report, no doubt, the headline.

But I think, when you go under the hood, you can see it was driven by some temporary factors that mask some underlying strength. Let me show what I'm talking about, a couple of factors here. Omicron shut down businesses. Some COVID relief expired. Businesses didn't build as much inventories as in the past.

Government spending actually declined. And the big one here is trade. Imports spiked. And that actually was the biggest decline, the biggest negative for GDP, and that was because of strong domestic demand. But there are some positives, too.

Let's look at consumer spending. That's the biggest driver of the U.S. economy. It actually accelerated. And business investment up 9.2 percent, that is a very strong number.

So that's why we shouldn't overreact, panic about this. It likely does not signal an imminent recession.

CABRERA: So, important perspective, context there. And it sounds like they're still optimism for spring and summer?

EGAN: Yes, absolutely.

There is an expectation that the economy is going to resume growing the spring and summer and the next couple of quarters. There's a couple of positive factors. We're learning to live with COVID. Each successive wave of the virus is doing less damage to the economy. That means more traveling, which is expected to really pick up.

Consumer spending is also healthy. We have to see whether or not that continues because of high inflation. But we do expect the unemployment rate to keep coming down. Look at this, 3.6 percent today. That is down dramatically from this peak of nearly 15 percent two years ago. Actually, if we go much lower here, we're going to take out the pre- COVID lows.

That is a really big positive. And I think that the big question is, what does the economy look like a year from now? Because if inflation stays high, and the Fed has to keep raising interest rates, that's where the recession concern comes in.

Right now, we do expect the economy to resume growing. CABRERA: Well, thank you for explaining all of it. It can get

complicated, but a lot of us need to know this information. It affects our pocketbooks.

Thank you, Matt Egan, as always.

The head of NATO calls the war in Ukraine unpredictable and fragile and says there is a real possibility it could drag on for years. Is there anything that can be done to prevent that?

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[13:28:39]

CABRERA: A senior U.S. defense official says, right now, Russian forces are making slow and uneven progress in Eastern Ukraine, due to logistics problems and to Ukrainian resistance.

The secretary-general of NATO, however, warned that the war could drag on for months and years.

With us now, our CNN military analyst and former NATO supreme allied commander General Wesley Clark and former U.S. Ambassador to the U.N. Bill Richardson.

General Clark, in terms of where we are right now, is this new round of aid that President Biden laid out this morning, including $20.4 billion in military and security assistance, what's needed right now?

WESLEY CLARK, CNN MILITARY ANALYST: Look, we have got to get it in there.

Yes, it's needed. And it's going to be more. Much more is going to be needed later. But this battle in Donbass is -- it may be slow and uneven progress by the Russians, but they have got tremendous mass behind what they're doing. They have reorganized their forces.

There's about 120-mile -- a 120-kilometer gap between the north and south pincers. As that closes at the rate of three, four, five kilometers a day, at any point, there could be a breakthrough. And you're going to have a terrible dilemma facing our Ukrainian friends there.

They're either going to have to pull out of those prepared positions at the nose of the salient and race for the Dnieper River bridges, or they're going to get encircled. And then that's its own problem.