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Walker, Warnock Face Off In Georgia Senate Campaign Debate; Biden Campaigns In Oregon, By Passing Some Critical States; Biden Vows "Consequences" For Saudi Arabia After Oil Production Cut; Pelosi: It's "Not Safe Enough For Us To Go Back, We're Trying To Figure Out How We Can Get This Job Done Today;" Construction Underway On Migrant Relief Center On Randall's Island; Dems Face Midterm Threat From Spiking Prices, Economic Volatility; Climate Crisis Disrupting Schools Across The Country. Aired 12-1p ET
Aired October 15, 2022 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[12:00:45]
FREDRICKA WHITFIELD, CNN HOST (on camera): Hello again, everyone. Thank you so much for joining me. I'm Fredricka Whitfield.
We begin in Georgia where a contentious race could determine which party controls the U.S. Senate.
Democratic Senator Raphael Warnock faced off against Republican Herschel Walker last night after weeks of bombshell allegations leveled at the former football star.
(BEGIN VIDEO CLIP)
BUCK LANFORD, DEBATE MODERATOR: A week before this debate, a former girlfriend made public accusations saying you paid for an abortion and that you encouraged her to have another.
In an ABC News interview this week, you said that the accusations are "all lies." For the voters watching tonight, can you explain the circumstances surrounding these claims? You have 60 seconds.
HERSCHEL WALKER (R-GA), SENATORIAL CANDIDATE, GEORGIA: Well, as I say that's a lie. And, you know, what most thing, I put -- I put it in a book. One thing about my life is I've been very transparent. Not like the Senator, he has hid things. But at the same time, I'd say that's a lie.
(END VIDEO CLIP)
WHITFIELD: CNN's Eva McKend joining me live from Savannah, where that debate took place. So, Eva, this will be their only debate right? I mean, no promises that there would be another within the next 30 days or so. So, tell us how they did.
EVA MCKEND, CNN NATIONAL POLITICS REPORTER (on camera): Well, good afternoon from beautiful Savannah, Fred. Listen, both sides really claiming victory this morning as expected. Senator Warnock spent much of the debate playing off his bipartisan policy achievements in Congress. While Walker worked overtime to try to tie Warnock to President Biden.
Here is our recap.
MCKEND (voice-over): Democratic Senator Raphael, Warnock and Republican challenger Herschel Walker are in a contentious Georgia Senate race with U.S. Senate control at stake.
(BEGIN VIDEOTAPE)
LANFORD: It is time to get underway.
MCKEND: The Georgia candidates debated Friday night.
Walker, running on a family values platform, currently involved in a scandal over allegedly pressuring the mother of one of his children to get an abortion.
LANFORD: A week before this debate, a former girlfriend made public accusations saying you paid for an abortion and that you encouraged her to have another.
In an ABC News interview this week, you said that the accusations are "all lies." For the voters watching tonight, can you explain the circumstances surrounding these claims? You have 60 seconds.
WALKER: Well, as I say that's a lie. And, you know, what most thing, I put -- I put it in a book. One thing about my life is I've been very transparent. Not like the Senator, he has hid things. But at the same time, I'd say that's a lie.
And on abortion, you know I'm a Christian. I believe in life. And I tell people this, Georgia is a state that respects life, and I'll be a senator that protects life.
And I say that was a lie. And I'm not backing down.
SEN. RAPHAEL WARNOCK (D-GA), SENATORIAL CANDIDATE: The patient's room is too narrow and small and cramped a space for a woman, her doctor, and the United States government. We are witnessing right now what happens when politicians most of -- most of them men, pile into patient's rooms.
You get what you're seeing right now. And the women of Georgia -- the women of Georgia deserves a senator who will stand with them. I trust women more than I trust politician.
WALKER: I heard about him. Yes, I heard he was -- he was -- he's just neat talker. But did he not mentioned that there is a baby in that room as well.
And also, did he not mention that he asked him -- that he's asking -- that he asking the taxpayer to pay for it? So, he bringing the government back into the room.
MCKEND: CNN has not independently verified the allegations about Walker.
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Herschel, please say a few words.
MCKEND: Walker was given the opportunity to distance himself from the former president on election denial.
TINA TYRUS-SHAW, DEBATE MODERATOR: Did President Biden defeat former President Donald Trump in 2020?
WALKER: President Biden won and Senator Warnock won. That's the reason I decided to run. Because we need a change in Washington. We need leaders that's going to stand up to foreign leaders. We need people that's going to stand up for people in Georgia.
MCKEND: On Friday, both candidates said they would accept the results of this election.
Walker was also asked about crime and took the opportunity to make a string of claims about Senator Warnock, accusing Warnock of not supporting the police who gave this for battle.
WARNOCK: We will see time and time again tonight as we've already seen, that my opponent has a problem with the truth. I -- and just because he says something doesn't mean it's true.
[12:05:04]
I have supported our police officers. I've called them and I prayed with their families. You can support police officers as I have done, through the cop's program, through the invest to protect program, while at the same time, holding police officers like all professions accountable.
One thing I have not done, I've never pretended to be a police officer. And, I've never -- I've never threatened a shootout with the police.
WALKER: And now I have to respond to that.
TYRUS-SHAW: We are -- we are -- we are moving on gentleman.
WALKER: No, no, no, no, I have to respond to that. And you know what's so funny? I am worked with many police officers. And at the same time, Pastor --
TYRUS-SHAW: Mr. Walker. Mr. Walker.
(CROSSTALK)
WALKER: No, no, no, no, no. When he say a problem with the truth --
TYRUS-SHAW: Mr. Walker. Mr. Walker. Excuse me, Mr. Walker. WALKER: When he say a problem with the truth, the truth is in here.
TYRUS-SHAW: Please, out of respect, I need to let you know, Mr. Walker.
WALKER: Yes.
TYRUS-SHAW: You are very well aware of the rules tonight.
WALKER: Yes. Yes.
TYRUS-SHAW: And you have a prop.
WALKER: Yes.
UNIDENTIFIED FEMALE: That is not allowed, sir.
MCKEND: Early voting starts Monday in Georgia.
(END VIDEOTAPE)
MCKEND (on camera): Now, Walker held the post debate rally this morning in Savannah. We had the opportunity to speak to some of his supporters there. And they told us they were quite nervous going into last night because they said that Senator Warnock as a pastor is clearly a lot more polished.
But they felt as though that Walker held his own and really defied their expectations. Fred.
WHITFIELD: All right, Eva. So, no -- not likely to have another debate, but they have really not even 30 days. They have only 24 days left of campaigning, and we know it will be intensifying until the Election Day.
But, of course you say early voting starts Monday. Eva McKend, thank you so much. Appreciate it.
All right, while President Joe Biden was not physically in Georgia last night, his name was repeatedly invoked by Herschel Walker, in an apparent effort to tie his Democratic opponent to the President's policies.
CNN White House reporter Jasmine Wright, joining us now. So, Jasmine, Biden, on a campaign swing through the West this weekend. He is not hitting some of the states that you might expect.
So, what is the strategy?
JASMINE WRIGHT, CNN WHITE HOUSE REPORTER (on camera): Yes. Well, the President spent the last three days. Today will be his fourth winning ties it up, mixing official policy with politics. We seen him going to Democratic strongholds.
First, we saw him in Colorado, then, two stops in California. Today, he will be in Oregon, really touting the achievements that this administration has done, really tried to make the case for Democrats as they are just under four weeks to the midterm election, and to raise millions of dollars with Democratic candidates.
Noticeably absent, though, from that West Coast string is a president's appearance in Arizona and Nevada, two states where those Senate races are very tight, and they could determine whether or not Democrats keep the Senate. Again, really limiting possibly they lose it, what President Biden could do in the next two years?
And so, be really reflective of that absence is the president's poll numbers. He is unpopular right now. And so, the president, as well as his advisors, we know that he thinks that his best contribution for the midterms is him going out to those democratic strongholds and touting what this administration has done.
And also really trying to draw a contrast between Democrats and Republicans. What he is sometimes labelled MAGA Republicans, and talk about what's at stake here. And that's exactly what he did this week. Take a listen.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: This is, I think, the most important off-year election that we've had in since Roosevelt's time. I mean that sincerely, because so much is at stake. If we are able to keep the House and keep the Senate, we can continue to do the things we've been doing which you're really going to make change the country.
(END VIDEO CLIP)
WRIGHT: So, we'll see President Biden twice today. First, he will give remarks on lowering costs, and then, he'll do a finance event with gubernatorial candidate Tina Kotek, who is in a tight race in Oregon, before coming back to the East Coast, spending the weekend in Delaware. Fred.
WHITFIELD: All right. Jasmine Wright, thank you so much.
All right, the major issue plaguing President Biden is his relationship with Saudi Arabia.
WHITFIELD (voice-over): After the move by OPEC to cut oil production, Biden told our Jake Tapper that it's time for the U.S. to rethink its relationship with the Saudis. And he accused them of helping to fund Putin's war in Ukraine by trying to raise the price of oil.
Natasha Bertrand, joining us now with the latest on this.
WHITFIELD (on camera): Natasha, the relationship between the U.S. and Saudi Arabia has become really frayed. How did it get to this point?
NATASHA BERTRAND, CNN WHITE HOUSE REPORTER (on camera): In a word, Fred, oil. That seems to be really at the heart of a lot of the issues between the U.S. and Saudi Arabia these days.
The most recent incident came when the Saudis led OPEC to cut production of oil by roughly 2 million barrels a day, something that the United States is said it's going to help Russia because it could drive up oil for races and allow Russia to reap greater energy profits, allowing it to maintain its war machine in Ukraine.
[12:10:07]
BERTRAND (voice-over): Tensions between the U.S. and Saudi Arabia escalating sharply this week, with U.S. officials accusing the Saudis of strong arming OPEC into cutting oil production, and helping Russia maintain its war machine in Ukraine.
(BEGIN VIDEOTAPE)
ANTONY BLINKEN, UNITED STATES SECRETARY OF STATE: The Saudis had conveyed to us, both privately, as well as publicly their intention to reduce oil production, which they knew would increase Russian revenues, and potentially blunt the effectiveness of sanctions. We made clear that, that would be the wrong direction.
BERTRAND: The OPEC Plus decision to cut oil production by as much as 2 million barrels per day has rattled the White House, which now says it is reevaluating its relationship with the Saudis, one of the U.S.'s most important Middle East allies, just months after President Biden traveled to Jeddah in an effort to mend an already faltering relationship.
BIDEN: I am in the process when the House and Senate gets back, they're going to have to -- there is going to be some consequences for what they've done with Russia.
BERTRAND: Multiple sources also telling CNN that other OPEC Plus members, including the United Arab Emirates, and Iraq, oppose the Saudi-led decision.
Those countries have now indicated to the U.S. that they may not move forward with the kind of huge cuts that Saudi Arabia wants, one of the sources said.
The Saudis have pushed back against the Biden administration, releasing a rare written statement accusing the U.S. of trying to distort the facts, and insisting the decision was based purely on economic considerations.
ADEL AL-JUBEIR, MINISTER OF FOREIGN AFFAIRS, SAUDI ARABIA: Saudi Arabia is not siding with Russia. Saudi Arabia is taking the side of trying to ensure the stability of the oil market.
BERTRAND: As the Biden administration considers how to punish Saudi Arabia, a senior official tells CNN, they've been purposefully vague to keep the Saudis guessing.
But one option lawmakers are considering is to ban future weapon sales to the country. Once Congress is back in session.
SEN. CHRIS COONS (D-DE): I think it's unlikely that we will support any additional arm sales to the Saudis. This was a punch in the gut. BERTRAND: There are currently no imminent weapons sales to Saudi Arabia in the pipeline, though, and experts are skeptical that the relationship will fundamentally change.
JONATHAN LORD, SENIOR FELLOW AND DIRECTOR, MIDDLE EAST SECURITY PROGRAM, CNAS: Because of Saudi Arabia's activities in the war in Yemen and the civilian casualties they caused, followed by the murder of Jamal Khashoggi, Congress has become more and more critical in controlling of U.S. foreign military sales to Saudi Arabia.
There is very little coercion left that the U.S. can do in trying to control military sales to Saudi Arabia.
(END VIDEOTAPE)
BERTRAND (on camera): So far, the U.S. official did tell us that a lot of this was theatre by the Saudis, because some of those oil producing countries did not agree with their decision that we might not actually see that full 2 million barrels of oil per day taken off the market.
However, they are watching for that meeting next month, another meeting of OPEC, to see whether the Saudis choose to stay on this path.
WHITFIELD: All right. Natasha Bertrand, thank you so much for bringing that to us.
All right. Still to come. We'll show you new footage that shows congressional leaders making contingency plans on January 6th as Trump supporters were attacking the Capitol. We'll be right back.
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WHITFIELD: All right. We're seeing powerful new video today, showing the threats congressional leaders face as they fled the Capitol during the January 6th riots.
WHITFIELD (voice-over): The exclusive video is from filmmaker Alexandra Pelosi. She is the daughter of House Speaker Nancy Pelosi and was shooting a documentary on the day of the insurrection.
The video shows Speaker Pelosi and other congressional leaders as they sheltered at Fort McNair.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Specials -- special --
REP. NANCY PELOSI (D-CA): Well, definitely we're still not safe enough for us to go back, that they're even still trying to penetrate the building, and it's not a safe thing, because we're trying to figure out how we can get this job done today.
We talk to Mitch about it earlier. He's not in the room right now. But he was with us earlier. And said he want to expedite this. And hopefully, they could confine it to just one complaint, I was in and then we could vote and that would be, you know, then, just move forward with the rest of the state.
(END VIDEO CLIP)
WHITFIELD: At the same time, Vice President Pence was holed up at an underground loading dock on the Capitol campus.
WHITFIELD (on camera): CNN's Zachary Cohen joining us now.
Zachary, what more can you tell us about this new video from the day of that Capitol riot?
ZACHARY COHEN, CNN NATIONAL SECURITY REPORTER (on camera): Yes, Fredricka. This is really interesting video here. It's the exclusive first look inside what was happening at Fort McNair on January 6th, after members of Congress were evacuated from the U.S. Capitol.
And it includes a moment where Nancy Pelosi and former Vice President Mike Pence are so concerned about the security situation at the Capitol, that they're drawing up contingency plans to certify the 2020 election.
Take a look at this.
(BEGIN VIDEO CLIP)
PELOSI: We're at Fort McNair, which has facilities for the House and the Senate to meet, as a backup plan. Should they seem like this -- but anything happened, that would warrant that.
We logistically, want to bring all the members here, House and Senate. Anyway, we're just making a judgment. We'd rather go to the Capitol and do it there. But it doesn't seem to be safe.
(END VIDEO CLIP)
COHEN: So, we obviously know that the lawmakers did ultimately meet at the U.S. Capitol after the violence was stemmed, and did vote to certify the election.
But this clip really shows you the level of concern amongst some of the nation's top leaders, while the riot was unfolding. And also the coordination between two lawmakers who really have couldn't have more different political views.
WHITFIELD: And then, Zachary, the January 6 committee, you know, has voted to subpoena the former president, president -- former President Trump, who says, you know, he'd be glad to do this live.
[12:20:00]
But then, what's the reality of what he is saying?
COHEN: Yes, Fredricka, former President Trump did issue a lengthy response to the January 6 committee subpoena.
But, in it, he doesn't really say whether or not he will actually comply with the terms they've laid out. The committee wants the former president to hand over documents and to testify.
And, you know, we've reached back out to the Trump team and try to get more of a clear answer on whether or not he will actually testify.
Now, the response spends a lot of time rehashing the same claimed about voter fraud the same claimed to the 2020 election was stolen. Of course, it wasn't. But, you know, our Brianna Keiler talked to former President Trump's chief -- one-time Chief of Staff Mick Mulvaney. He doesn't think there is any way the former president actually comes in and testifies.
WHITFIELD: All right, Zachary Cohen. We'll leave it there for now. Thanks so much.
All right, coming up next in the CNN NEWSROOM.
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NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR (on camera): But there's a race here to prepare new positions so they can't be seen by Russian drones in the winter.
WHITFIELD (voice-over): CNN goes to the front lines as Ukrainian forces advance in the crucial battle for the port city of Kherson. The latest from our reporters when we come right back.
(END VIDEO CLIP)
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[12:25:36]
WHITFIELD (on camera): Russian officials say Ukrainian forces have begun a counter offensive to retake territory in the southern Kherson region.
WHITFIELD (voice-over): On Thursday, the head of the Russian occupied area asked the Kremlin to help evacuate locals to other regions ahead of intensified fighting. It comes as the nearby city of Zaporizhzhia was reportedly struck by Russian missiles and drone attacks today.
CNN's Nick Paton Walsh is on the ground in southern Ukraine where the push to recapture territory is on.
(BEGIN VIDEOTAPE)
WALSH (voice-over): Night is when the push for the South busies Humvees speed the roads, incendiary munitions light up the night. That dusk, the skies alight with air defenses around the Russian held, heavily defended town of Snihurivka, just three miles south of here.
It's the gateway to the big prize, the city of Kherson, where Russia is already evacuating civilians and low on supplies.
WALSH (on camera): They say the shelling has been noticeably less over the past month and a half. Probably because of the damage done to supply lines the Russians need to bring munitions towards the front here.
WALSH: Radio chatter they've intercepted between Russians here is of ammo running out and conscripts fleeing.
UNIDENTIFIED MALE (text): The mobilized conscripts here are calling "humanitarian aid". And they say they don't need them.
WALSH (voice-over): In three days moving around the front lines here, it's clear Ukraine's movement forwards has met a hardened Russian defense, even if they are low on ammo.
On this tree line to Snihurivka's west, the Russian paratroopers are under a mile away.
NAZAR, SOLDIER OF 63RD BRIGADE (text): They are well trained. They fire often and yesterday hit the trees 200 meters away from us, 25 times.
WALSH: New trenches are being dug and camouflage laid out. Nature is about to turn on both sides equally.
WALSH (on-camera): So, obviously in the winter, the cover of the trees will be gone. And so, there's a race here to prepare new positions so they can't be seen by Russian drones in the winter.
WALSH (voice-over): A mix of the oldest type of warfare and oven heating bunk beds underground here.
WALSH (on-camera): Place for their rifles. This for five people is where they're going to be during the winter if they're still here.
WALSH (voice-over): And the newest. This is an antenna for Starlink.
Billionaire Elon Musk's satellite Internet service, sending a live stream of drone footage of the artillery battle here.
STAS, DRONE OPERATOR (text): They are firing at us, and I am trying to find them.
WALSH: This is where that signal is sent.
Meet Fugas, his nickname, a farmer, turned drone warfare commander. And then, the lethal impact of a billionaire's Internet service and store bought drones, a hit on a Russia vehicle.
The black smoke under the mouse cursor.
They show us video of several impacts that day. They know that they will be hit back.
FUGAS, UKRAINIAN COMMANDER (text): They don't value human life or the lives of their soldiers. Unlike us. But all the same they are watching us all the time.
WALSH (voice-over): In the villages out east in Kherson, we see how fierce the fight for each village has been. Ukraine is slowly moving forward. But every farm is a slog. Smoke crawling over every hill. One of Russia's largest bombs hit here.
Nothing left to come back for if you once lived in these homes. It is as if this wasteland is telling the Kremlin it's time to leave. But they think there's more damage left to do before the inevitable happens.
Nick Paton Walsh, CNN, Snihurivka, Ukraine.
(END VIDEOTAPE)
WHITFIELD (on camera): All right. Still ahead.
WHITFIELD (voice-over): Construction is underway for a migrant center on New York's Randalls Island, as the city continues to grapple with an influx of asylum seekers. We'll go live there. Next.
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WHITFIELD: All right, construction is nearly complete on a new migrant relief center in New York as the city grapples with a constant flow of asylum seekers. Authorities say more than 19,000 migrants have already been processed in the past few months. CNN's Gloria Pazmino is live on Randall's Island where tent like shelters are being built. Gloria, how is this happening and when does it actually get up and running?
GLORIA PAZMINO, CNN CORRESPONDENT: Well, we just got some brand new information from the mayor's office, Fred. They are hoping to have this up and running by the end of this month. You can see the structures begin to take shape behind me. We're on Randall's Island, as you said, and the city has had to resort to building the tents here because the shelter capacity is just at its maximum right now.
As you said, thousands of migrants have been coming through the city in the last couple of months, 19,400 has been processed by the Department of Homeless Shelters in the last few weeks. So the city is at capacity. And they're hoping that these tents are going to help with that. Now these will house 500 single adults. And while we were riding around here on Randall's Island, trying to get a better sense of what's happening here, we saw that they are fully being set up.
[12:35:26]
We were here earlier this week. And we have seen an incredible amount of progress be done in the last couple of days, the tents are up. Inside of them, you could see that they're beginning to set up cots. Every cot has a pillow and a blanket. And there's hundreds of them inside these tents. We also saw that there dozens of mobile bathroom, shower, and laundry units.
And this is, you know, part of what the city said they have no other option but to do because they have to set up these facilities so that people have a place to stay as they are arriving to the city, trying to figure out where they're going, and so that they can eventually get set up in some more permanent shelter.
This is not supposed to be a permanent solution. People are only supposed to be here for a couple of days while they get set up and processed. The mayor tells us that they'll have access to health care and food and medical attention should they need it. But this plan is getting some criticism because Randall's Island is hard to access. People will have to do so through public transportation.
So the city asking for help from the federal government and trying to meet the gap, you know, as they try and set up these tents so that people can be housed. Now in terms of families, as I said, this will only house 500 single adults. Families, which have also been coming in in the last couple of months will be sent to a hotel in midtown Manhattan, the Row Hotel is being set up as an intake center where families will be able to stay and get connected with some of the help that these migrants need.
Some of them are only passing through New York, some of them are not necessarily looking to stay New York. But the city has to step in, connect people to resources and this is all part of that effort. So again, the city telling us they hope to open this up by the end of this month. And if construction moves along, they could be doing it much sooner than that. Fred?
WHITFIELD: All right space, always a premium and a challenge in New York City. Gloria Pazmino, thanks so much.
All right, coming up, prices still red hot and mortgage rates are too high for some homebuyers. Will the volatile economy hurt Democrats in the midterm elections? We'll discuss when we come right back.
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[12:42:17]
WHITFIELD: A pretty choppy day for the stock markets on Friday on the heels of two new inflation reports released this week. Wholesale and consumer costs still rising more than expected in the month of September. CNN's Rahel Solomon wraps up the week on Wall Street and looks at the big market drivers coming in the days ahead.
RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Another week another bumpy ride on Wall Street. The Dow closing lower Friday by more than 400 points, although it ended the week higher, not so for the S&P and NASDAQ which both ended the week in the red. The week also brought with it to hotter than expected inflation reports both the Producer Price Index which measures factory or wholesale level inflation, and the consumer price index rose more than expected for the month of September.
Consumer prices rose 0.4 percent monthly and are higher by 8.2 percent over the last year. Costs continue to rise in essential categories like shelter, medical care and food. The report illustrating that inflation has spread beyond volatile categories like food and energy core inflation, which strips away those two categories rose 0.6 percent In September, or 6 percent annually, that is a fresh 40-year high. The stubbornly high inflation also reflected in separate government data released on Friday.
According to the retail sales report, consumer spending in September was flat compared to the month prior. While Americans continue to spend in categories like restaurants, bars and clothing stores, sales fell in other areas like electronics, appliances and furniture. The chief economist for the National Retail Federation saying in a statement in part, inflation is the main factor that's determining how much shoppers are willing to spend, households are tapping into savings, accessing credit and reducing their savings contributions as they meet higher prices head on.
Third quarter corporate earnings season also kicked off this week, we heard from a few of the major U.S. banks such as JPMorgan, nation's largest bank, beat Wall Street expectations for both revenue and earnings, also beating expectations, U.S. Bancorp and Wells Fargo.
Next week earnings season continues when we hear from other major companies like Bank of America, Johnson & Johnson, and Netflix. Rahel Solomon, CNN, New York.
WHITFIELD: All right, the White House looking for a silver lining on those inflation numbers that Rahel just mentioned. Here's the President on Thursday.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: Americans are squeezed by the cost of living. It's been true for years and folks don't need the report to tell them they're being squeezed. A lot of people are hurting these days. And today's report shows though some progress.
(END VIDEO CLIP)
WHITFIELD: All right, this comes as the Federal Reserve is poised to aggressively raise interest rates again, to try and bring prices under control. So how might this affect the midterm elections next month? CNN economics and political commentator and Washington Post opinion columnist Catherine Rampell joining us now. Good to see you Catherine. So you wrote a column for The Washington Post where you said, the Inflation Reduction Act won't show any meaningful changes to the economy by the elections. You're standing by that, right? It's really not until next year that you'd feel it?
[12:45:22]
CATHERINE RAMPELL, CNN ECONOMICS AND POLITICAL COMMENTATOR: At the earliest, and I'm not even sure we would feel it next year. That's not to say that the elements of the law are not worth doing or were not worth doing. I think they absolutely were major investments in climate, making healthcare more affordable, those are important things to do. The problem is the timeline.
If you care about the outcome in the midterms, the key elements of those pieces of the law will not kick in in time. So in the meantime, Americans are obviously still suffering under the pressure of higher prices, what they're paying for gas, for groceries, for shelter, for almost everything else that they purchase and there's just not that much unfortunately, that the President or Congress can do in the near term to get those -- that price growth under control.
WHITFIELD: All right, well, that was my next question. What can be done? What can Democrats do, you know, in the short term, so that people can feel some real changes? Because, you know, I mean, just across the board, everyone is hurting in some kind of way.
RAMPELL: Right. And look, I'm sure the President wishes he had a dial on his desk that he could use to bring down gas prices or the cost of eggs and milk and everything else you buy at the grocery store, he doesn't. There are some things that the administration could do kind of around the edges to help. So I'm thinking things like tariff repeal, we have tariffs on every part of a house right now. And there's a shortage of housing. We have tariffs on lots of consumer goods from China, and some inputs that are purchased abroad from elsewhere.
There are a lot of problems with the immigration system that continue that they didn't begin under the Biden administration, many of which were aggravated under the Trump administration. But those are contributing to labor shortages. Some of those could be worked out. And then there's some other things like suspending some shipping restrictions that also raise the cost of sending goods around the country.
But in general, it is up to the Federal Reserve, the central bank to do what it can to get price pressures under control. And it is trying. It is raising interest rates, which also imposes some pain. To be clear, we see mortgage rates going up, for example, that imposes some pain. But the goal, of course, is to cool demand. To tighten financial conditions just enough so that you get demand and supply more aligned and therefore bring down some of those pressures that are pushing prices upward.
WHITFIELD: All right, you did mention a moment ago that gas prices, there might be a little bit of relief for some get falling gas prices. But I wonder, as we head into midterms, do you think the American people, you know, largely are even listening to the findings, you know, of the January 6th Committee? Do you think the outcome of those findings in any way might make an economic impact on Americans?
RAMPELL: I think what matters for voters, what will ultimately matter for voters will be pocketbook issues. Again, not to say that the January 6th hearings are not important, I think they are important for setting the record straight for the future of the health of democracy, all of those critical objectives.
But when it comes to what is driving voting behavior, I think you're much more likely to see voters paying attention to the prices that they're paying, whether their wages are keeping up, whether they're feeling financially strained. So whatever the other noble objectives of these hearings might be, will it affect the midterms? Probably not as much as the price people are paying at the pump.
WHITFIELD: All right, Catherine Rampell, good to see you. Thanks so much.
RAMPELL: Thank you.
WHITFIELD: All right, you can now apply online for student loan forgiveness, thanks to the Biden administration's new website. The Education Department's student debt cancellation site went live for beta testing last night ahead of its official launch later on in the month. In August, President Biden announced the cancellation of up to $10,000 in student loan debt for those making less than $125,000 a year. And borrowers who received Pell Grants could see their student debt cut by as much as $20,000.
But first amid the COVID-19 pandemic, there has been a surge in anti- Asian hate crimes in the U.S., increasing 164 percent early last year in 16 of the nation's largest cities. This week, CNN Hero salutes Michelle Tran, a Chinese and Vietnamese American whose nonprofit soar over hate has provided more than 30,000 personal safety devices as well as self-defense classes to Asian Americans.
(BEGIN VIDEOTAPE)
[12:50:09]
MICHELLE TRAN, CO-FOUNDER, SOAR OVER HATE: The day of our distribution, lines are past four blocks around the neighborhood where people waited almost two hours to obtain a personal safety device from us.
To make the noise, you plug the pin. And it scares people away and alerts people around you. It was simultaneously heartbreaking but also motivating to see so many people come out. I think it highlighted the need and the fears that many folks like me are experiencing right now.
UNIDENTIFIED FEMALE: Thank you so much.
UNIDENTIFIED FEMALE: Thank you so much.
TRAN: Stay safe. Bye.
I hope that our work helps save lives. That's our only hope moving forward.
(END VIDEO CLIP)
WHITFIELD: And to learn more about all the ways Michelle and her organization are working to combat Asian hate, go to CNNHeroes.com. We'll be right back.
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[12:55:31]
WHITFIELD: Abbott is recalling certain liquid baby formulas over faulty bottle caps. The recall includes small two ounce bottles of ready to feed formula. Abbott says it will only affect a small fraction of the total U.S. supply. The bottle cap defects means some bottles might not have sealed completely making it unsafe for children potentially causing stomach problems, vomiting, and diarrhea. And you can find a full list of all the recalled products online.
The U.S. is facing a shortage of the attention deficit drug, Adderall. The FDA's website shows backorders for generic versions of the drug that are expected to last into March backorders for the name brand version could be resolved later on this month. The FDA blamed supply chain issues while one of the generic manufacturers said it had been dealing with labor shortages.
Extreme weather caused by climate change is disrupting school systems nationwide. In Lee County, Florida, three badly damaged school districts are still closed weeks after Hurricane Ian hit the state. Lee County was one of the hardest hit areas by the storm. As CNN's Rene Marsh explains, this is just one example of how the climate crisis is impacting education.
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MELISSA WRIGHT, SON'S SCHOOL WAS DESTROYED: My goodness gracious.
RENE MARSH, CNN CORRESPONDENT (voice-over): Melissa Wright sees the destruction at her 10-year-old son Zane school for the first time.
WRIGHT: That's the sign he stands in from the first day of school every year.
MARSH (voice-over): Fort Myers Beach Elementary is one block from the ocean. Hurricane Ian's powerful winds tore down walls and its storm surge approach the top of the school doors, destroying nearly everything inside.
WRIGHT: Losing that school is it's probably what I've cried about the most.
MARSH (voice-over): It's been more than two weeks that the entire Lee County School District remains shut down.
DR. CHRISTOPHER BERNIER, LEE COUNTY SCHOOLS SUPERINTENDENT: We do have schools that remain in a high needs category, suffering significant damage.
WRIGHT: He already said this year is tougher for him than most so I am worried about him falling behind.
MARSH (voice-over): Lee County schools are emblematic of a growing trend, the climate crisis disrupting school systems nationwide for months and in some cases years.
In California wildfires have been the leading cause of school closures. From 2018 to 2019, a record 2,295 schools closed. Last year in Louisiana, Hurricane Ida, a devastating category four storm ripped off roofs and destroyed schools. More than a year later, two schools for close to 900 students are still inoperable. And in Tennessee, 17 inches of rain fell in 24 hours flooding Waverly Elementary and junior high school. More than a year later, some students are using an auditorium with partitions for classrooms.
A government study found that since 2017, more than 300 presidentially declared major disasters have occurred across all 50 states in U.S. territories with devastating effects on K through 12 schools including trauma and mental health issues, lost instructional time and financial strain. Something Waverly Tennessee schools know well. After the flood there, students test scores lagged behind the rest of the state.
RICHARD RYE, WAVERLY SCHOOLS SUPERINTENDENT: Some of our staff and teachers lost their homes. They lost their loved ones. They lost, you know, and their classrooms. So mentally wise that is put a toll on them.
MARSH (voice-over): As schools struggle to recuperate from extreme weather, experts say they must better understand their future risk and rebuild more resilient structures.
LAURA SCHIFTER, ASPEN INSTITUTE: Our public schools right now they received a D plus on America's infrastructure report card.
WRIGHT: Wow.
MARSH (voice-over): Until then, when extreme weather strikes, all that is lost will undoubtedly also include quality instructional time in school.
(on camera): Extreme weather has already had a multifaceted impact on America's schools. Several school systems tell me the mental health of students and teachers who are coping with personal losses as they try to resume learning is a major issue. And supply chain issues have made rebuilding schools a drawn out process so students are in temporary learning environments for extremely long stretches of time.
Rene Marsh, CNN, Washington.
(END VIDEOTAPE)
WHITFIELD: All right, hello again, everyone. Thank you so much for joining me. I'm Fredricka Whitfield.
[13:00:01]
All right, the midterm elections just weeks away and the balance of power in Congress is up for grabs.
