Return to Transcripts main page

CNN Newsroom

Heather Boushey is Interviewed about the Economy; Parents of St. Louis Gunman Sought Help Before Shooting; Texas DPS Chief Speaks Publicly Today; Trump's Lawyers Accept Subpoena. Aired 9:30-10a ET

Aired October 27, 2022 - 09:30   ET

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

(COMMERCIAL BREAK)

[09:31:32]

ERICA HILL, CNN ANCHOR: We are marking a somber anniversary this morning in America's history. Four years ago on this day a gunman carried out a hate-filled attack on the Tree of Life Synagogue in Pittsburgh, killing 11, injuries six others. This anniversary, of course, being marked amid heightened anti-Semitism and attacks of hate across the U.S.

Earlier today, the president paid his respects to the lives lost saying, as we grieve this deadly act of anti-Semitism in American history, we stand with the community of Squirrel Hill and Jewish communities across America and around the world.

Encouraging news out this morning on the U.S. economy. Domestic GDP grew 2.6 percent in the third quarter of 2022 according to initial estimates. That's the first period of positive growth this year and a little better than was expected.

We'll show you a live look at the markets here. Of course, just opening up just about two minutes ago. The Dow responding positively, up just over 1 percent right now.

Joining me now to discuss, Heather Boushey. She currently serves on the White House Council of Economic Advisers.

Heather, good to see you this morning. So this is good news, right? This is a little bit higher than was predicted in terms of GDP. I know there's also concern, though. One of our CNN business writers saying is this the bump before the slump.

How is the White House preparing for what by all accounts could be a slump in the not-too-distant future?

HEATHER BOUSHEY, MEMBER, WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS: Well, here's the thing, Erica. I mean, first off, this is a good report. It means that the economy is transitioning to kind of this steady growth that we want to see. And when you combine this with reports that we've seen recently in the labor market, this does show that the economy continues to be - to move forward. It does show that we're continuing to show job gains and overall growth. So that is generally good news. And I think you see that reflected in markets this morning.

You know, the challenge, of course, is what - it's always the challenge is, what's around the corner. You know, we continue to have prices that are higher than we want them to be. But I think, overall, what we know is that we are in a relatively strong position to weather the storms in front of us. And I think this report provides further evidence of that. Consumers are continuing to spend. Businesses are continuing to invest, albeit at not the sort of blockbuster pace they were as we were recovering early in the pandemic, and that, too, is good news.

So, I think we're seeing the kind of steady growth that we need to see.

HILL: So, we're seeing that steady growth. You told "The Washington Post" last week, I'm quoting you here, the White House is not planning for a recession. We're working on bringing down inflation, focused on lowering the cost of living.

President Biden did tell Jake Tapper that a slight recession is possible. Are you changing that focus? Is there also planning happening for a recession, which a number of America's top bankers and economists say is likely coming our way. It doesn't mean it's going to be a massive one, but it is coming, because can't you plan for both at the same time?

BOUSHEY: Well, here's the thing, we are focused on executing on the president's agenda and the economic vision that he has put forward. You know, our number one goal when the president came into office was to get the economy back on track. We've seen over 10 million jobs created on his watch. And, you know, especially since the spring and summer we've been really focused on, as the president likes to say, giving families a little bit of breathing room, bringing down costs.

And we've seen remarkable progress there. You know, supply chains that were upended during the pandemic, as we all learned how the closure of a factory overseas because of a pandemic meant that we couldn't buy the goods that we wanted at the store.

[09:35:03]

There's been so much progress in smoothing out those supply chains, getting things working again. And I think you see again that evidence - you know, further evidence of that in today's numbers and recent data.

You know, at the same time, we've also seen a reduction in gas prices. You know, saving the typical driver about $65 a month. And so these are the urgent and immediate foci (ph). And making sure that we're doing all of this while, as the president keeps demanding, that we grow the economy from the bottom up and middle out and we continue to see that sustained job creation. These are our priorities.

HILL: So - so planning for -- I just want to be clear because those were all important, but just to be clear, there is not current planning for a recession, is that correct? BOUSHEY: I think that what we are focused on is making sure that we

continue to see this kind of strong, steady growth that we're seeing today. And that is, of course, you know, the legislative agenda that the president has gotten through. All of this has been focused on that kind of steady growth. You know, the announcements that we're seeing around the country, you know, semiconductor plants opening, of the new investments in batteries, all of these things are about propelling the economy forward and making sure that we are watching this every day and keeping a fine beat on it.

HILL: Can -- I only have time for a yes or no, but there has been a push to put a pause on the hiking of interest rates coming from both Goldman Sachs and even Senate Democratic John Hickenlooper saying, the Fed really needs to take a pause here. We know it takes a good six months for these rate hikes to really factor in.

Should the Fed consider a pause?

BOUSHEY: I cannot comment on Fed policy. It's a standard White House - there's a - there's a line (ph) there.

HILL: But we always have to ask.

Heather Boushey, appreciate you joining us this morning. Thank you.

BOUSHEY: Thank you.

HILL: Still to come here, police had taken an AR-15-style rifle from the St. Louis school shooter. Then he got it back. We have the new details about how all of that happened. Stay with us. That's next.

(COMMERCIAL BREAK)

[09:41:32]

The family of the gunman in the deadly St. Louis school shooting earlier this week had been trying to get him help we're learning. The St. Louis police commissioner says the gunman's family had been working with local mental health institutions before that deadly attack. In fact, the weapon used on Monday morning had actually been removed from the home.

CNN's Adrienne Broaddus joining us now live from St. Louis with more of these details.

So it sounds like they were trying really hard, and then what happened, Adrienne?

ADRIENNE BROADDUS, CNN CORRESPONDENT: It does sound like they were trying, Erica. And because of the teen's mental health challenges, the family told police they periodically searched his home and checked his mail.

But nine days before the shooting at this school, the teen's mother called police and reported that she found this weapon. The initial call was do to a domestic disturbance. She told investigators she wanted the weapon out of the home.

Now, keep in mind, that 19-year-old legally was able to possess a firearm. But authorities worked with the family. The weapon was turned over to an adult that the family knew who could legally possess that AR-15-style rifle. It is still unclear how that 19-year-old shooter got the gun back in his hands.

We also told you the 19-year-old left behind a notebook with messages saying, I don't have any friends. I don't have any family. I have been an isolated loner my entire life. This was the perfect storm for a mass shooting.

The family says they knew nothing about that notebook. In that notebook, the teen also said, and I'm quoting here from the chief of police, he said, they can't tell that I'm doing this and getting ready.

The chief says the family made efforts to get that teen help.

Listen in.

(BEGIN VIDEO CLIP)

LT. COL. MICHAEL SACK, INTERIM ST. LOUIS POLICE COMMISSIONER: They were constantly in touch with the medical providers who were providing medical care for him. They had had him committed on some occasions. They were just really very engaged and attuned to him, you know, when he went to work and everything. So, you know, mental health is a difficult thing, you know. It's just - and it's hard to tell when somebody is going to be violent or act out or if they're just struggling, they're depressed, and they might self-harm.

(END VIDEO CLIP)

BROADDUS: The 19-year-old had no previous criminal history. It's still unclear how he obtained more than 600 rounds of ammunition. The chief also said the school was the target, and that 19-year-old did have some individuals he wanted to target.

Erica.

HILL: Adrienne, it's just all so heartbreaking.

Adrienne Broaddus, appreciate the update. So important. Thank you.

Just minutes from now, the director of the Texas Department of Public Safety will update the state's public safety commission about the investigation into his officers' actions during the Uvalde school shooting, which, of course, claimed the lives of 19 children and two teachers. This is Colonel Steven McCraw's first public testimony since labeling the response a, quote, abject failure while speaking before a Texas state senate committee.

CNN crime and justice correspondent Shimon Prokupecz is in Texas this morning.

So, what are we expecting to hear from McCraw today, Shimon?

[09:45:00]

SHIMON PROKUPECZ, CNN CRIME AND JUSTICE CORRESPONDENT: Well, certainly one of the things that McCraw is going to tell us, we're expected to get an updated timeline, some kind of enhanced timeline, Erica, detailing more specifically when certain officers and agencies arrived. It's really important in this because so much of the blame has been placed on the local law enforcement, the school police department, which is now suspended, and the local police department. But I'm told there's going to be more of an enhanced timeline.

You know, a lot of focus now on the Texas State Police, the DPS, and exactly what they didn't do that day and perhaps should have done that day, Erica. And the other thing, really the big part of this today, is for the families. Several of the victims' families will be here speaking publicly for the first time in front of the DPS, in front of this commission, kind of going toe to toe, face-to-face with the head of the DPS, as you mentioned, Steve McCraw, who has been kind of the face of this investigation. Sort of the guy who's been providing all the information, a lot of it wrong, certainly early on a lot of wrong information. And he, himself, placing a lot of blame on the local police officials and not his own department, which, as we have seen through a lot of our reporting, shows that they did have more responsibility and should have done more that day.

So, we expect to learn more about parts of the internal investigation that they've been conducting. Seven of the officers and agents that are assigned to the DPS are under this extensive internal inspector general review. So we may learn some more details there. And the timeline, of course.

The end, right now, is unclear, because we don't know what the end result of these investigations are going to be. We don't know if he's going to announce any significant moves today. We know one of the officers who responded from DPS was terminated. Others are still under investigation.

But in all, Erica, really today, so much of this is going to be about the families who are going to be calling for Steven McCraw to resign. He said he would resign if any of his officers are found to be culpable. So, they want to hold him to that. They want him to resign and they want more answers.

So, we expect to hear shortly first to hear from family members and then we will hear from the director, Erica.

HILL: Yes, they want and they deserve those answers, especially all these months in.

Shimon, appreciate it. Thank you.

Still to come here, the clock is ticking for the January 6th committee. Donald Trump's now legally -- legal team accepted the panel's subpoena. That means they're facing this deadline now to turn over documents and testify. So, what's next? Stick around.

(COMMERCIAL BREAK)

[09:51:54]

HILL: CNN has learned lawyers for former President Trump have now accepted service of that subpoena from the January 6th committee. So now they have until next Friday, of course, to turn over the requested documents and until November 14th for Trump to testify at a deposition.

Joining me now, Elliot Williams, former deputy assistant attorney general at the Justice Department.

Elliot, good to see you this morning.

I know you've said that Trump's attorneys accepting this subpoena is an important development. Why?

ELLIOT WILLIAMS, CNN LEGAL ANALYST: Well, they had to accept the subpoena, Erica, because, look, there's an open question as to whether the president will be charged one day with contempt of Congress for not complying with the subpoena. Well, in order for that to happen, he has no not comply with the subpoena first. And his lawyers must have known that by not accepting the subpoena they would have created the first piece of evidence in what might seem like a inevitable contempt charge or contempt trail against the president. So, they had to accept it.

Now, let's see what they do over that next week, just like you said, if he is going to appear or provide documents.

HILL: So, as the clock is ticking for what was requested, right, in the letter that went along with the subpoena, there could be some negotiations that could potentially happen here. I'm curious, if you were on the former president's legal team, perhaps looking at a negotiation with the committee, what would you be asking for?

WILLIAMS: Whoo. Now, on -- what I think the president's legal team is doing is figuring out ways that they can run the clock out.

HILL: Yes.

WILLIAMS: Now, it is entirely common for parties to negotiate over the terms of an appearance before Congress, when they testify, where they testify, for how long, which documents and try to come to some agreement.

Now, look, I think that's not happening here. He's the former president of the United States. He's going to claim that this is a witch hunt and Congress is going after him and targeting him and it's all political. And I do think they are more likely to just burn time off the clock by suing and wasting time here.

HILL: Yes.

WILLIAMS: But, at end of the day, those are the kinds of things that if they were to negotiate, that's what would be on the table.

HILL: I also want to get your take on - so, of course, we learned yesterday - a judge ruled that Mark Meadows, former chief of staff for the White House, has to appear before this Atlanta grand jury which is investigating election meddling in 2020. What's interesting is, of course, that Mark Meadows was wearing two hats in 2020, White House chief of staff and then also working on behalf of Donald Trump the candidate.

So, when we look at his exposure, when we look at privilege, if you got the big job for the big guy in the White House, does that cover everything else or could things that were being done for candidate Trump be exempt from that?

WILLIAMS: Now, look, that's an excellent question. That's for courts to sort out.

Now, a senior staffer like the White House chief of staff is, of course, going to have privilege over certain communications that he would have had with the president in the context of his duties as White House chief of staff. Now, this entire matter leading up to and including January 6th, if you were talking about fake electors and calls to the state of Georgia and, frankly, meetings that he had with the president, with other people present, none of those would be protected by privilege.

So, I mentioned that meeting, December 20, 2020, they have a meeting with the president and members of Congress.

[09:55:00]

You cannot claim privilege over a conversation that you invited other people to. And so certainly there are matters that the former White House chief of staff can and should testify to when called before a grand jury.

HILL: We will be watching to see how that plays out as well.

Elliot Williams, always appreciate it. Thank you.

WILLIAMS: Thanks, Erica.

HILL: This morning, New Jersey Senator Bob Menendez is facing a new federal investigation. Now, it is unclear at this point just what the Justice Department is looking into here. An adviser to Menendez did confirm to CNN the lawmaker is also unaware of the scope of the investigation. This comes just five years after the Democratic senator's federal corruption trial ended in a mistrial after the jury deadlocked. Prosecutors alleged back then that Menendez had accepted more than $600,000 in political contributions and other bribes in exchange for political favors.

HILL: Still to come here, we are live in Arizona where Democratic candidate for governor, Katie Hobbs, says her campaign headquarters was burglarized. Who they're blaming, next.

(COMMERCIAL BREAK)

[10:00:00]