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Fed to Make Interest Rate Decision; Fox Producer Gave False Testimony; New Video of Virginia Death in Police Custody; U.S. Man Linked to Gun in Mexican Kidnapping; Strike Shuts Down Los Angeles Schools. Aired 9:30-10a ET

Aired March 21, 2023 - 09:30   ET

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

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[09:32:03]

JOHN BERMAN, CNN ANCHOR: All right, you are looking at the Dow this morning. Wall Street just opened for trading. Investors waiting to hear what the Federal Reserve will decide on interest rates. We've been looking -- taking a live look at the big board. And you can see, the Dow up about a percent. So that's pretty optimistic.

ERICA HILL, CNN ANCHOR: Yes, we love a green arrow.

CNN chief business correspondent and anchor Christine Romans joining us now.

So, Chairman Powell, as we know, is going to be making this decision. Technically it's separate from the banking crisis, but, boy, it's hard not to look at all of the things at one time.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes, Nothing separate from anything.

HILL: Right.

ROMANS: I mean this is the hardest job I think -- this has been a hard job no matter what, but this is really tough here because just 13 days ago the Fed chief was saying we may need to go higher for longer on rates because inflation has been so entrenched, and then all of a sudden the banks start to wobble -- now could he say, oh, wait, forget that inflation thing, let's worry about the banks, then what kind of signal does that send, you know?

So, I think most people expect it's going to be a 25 basis point rate hike. They have to keep hiking rates because we have an inflation problem in this country. But they've got to walk and chew gum at the same time and tell the markets and tell Americans that they're doing the right thing and they've got this whole thing under control.

So, your scenarios, I think, here are no rate hike, which could spook the markets. It could say there's something in banking that we don't see.

HILL: Right. ROMANS: But it would give the banking system --

BERMAN: It's like too much what they went. They're like uh-oh.

ROMANS: Right. Right. Right.

HILL: Yes.

ROMANS: Right. Or they could do 25 basis, which most -- I think 85 percent -- the markets are showing an 85 percent chance of that. Or they could do 50 basis points, like the European Central Bank. And I don't know many people who think that they're going to do that. The banking system is still a little wobbly.

HILL: Wasn't - but wasn't the thought too, even before all of this happened, right, so after that testimony, the thinking was, well, Chairman Powell said we could go as high as 50, but that also gave him the wiggle room to only do 25 that would sort of help out, right, even if it was just psychological.

ROMANS: The crystal ball is just like gray and murky, you know? And I think they're going into this meeting today and tomorrow, by the way, with every single piece of the freshest, most available data. I was talking to an economist earlier today who said, look, taken in isolation, the economy is really strong. All the data since the last Fed meeting has been on the strong side, which is why you would need 50 basis points.

BERMAN: This is how they're going into the meeting with their fingers crossed right now.

ROMANS: Exactly.

BERMAN: I think that's the level of economic planning because they just can't know for sure the way things have gone.

Christine Romans, great to see you.

ROMANS: Yes.

HILL: We are learning some new details about explosive new lawsuits filed against Fox News from one of its own employees. A Fox News producer says she was coached, manipulated and coerced by Fox News attorneys to provide false testimony in a deposition on Dominion Voting Systems. Now the company is suing Fox, of course, in that $1.6 billion defamation suit.

BERMAN: CNN justice correspondent Jessica Schneider joins us live.

So, Jessica, walk us through this lawsuit and how it fits into the larger defamation case.

[09:35:00]

JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT: Yes, so this lawsuit is coming at the same time that a Delaware judge right now inside this courthouse is deciding whether to let this $1.6 billion defamation case against Fox News to proceed. So these were two lawsuits filed by a Fox News producer, Abby Grossberg, overnight. And in it she says that she was coerced into giving misleading testimony and statements during her depositions in this big defamation case. She says the false statements that she gave shifted culpability away from Fox News executives and also Fox Corporation.

So, her lawsuit is putting it this way, saying Fox News' attorneys acted as agents and at the behest of Fox News to misleadingly coach, manipulate and coerce Ms. Grossberg to deliver shaded and/or incomplete answers during her sworn deposition testimony, which answers were clearly to her reputational detriment, but greatly benefited Fox News.

Now, Fox News, for its part, is actually citing attorney/client privilege and saying that it really can't comment on this case. But it is significant given that this Fox New producer is now on administrative leave and she is filing these two lawsuits at the same time that this Delaware judge is deciding whether to let this case go to trial or whether he will just decide it right now because the crux of this case is that Dominion Voting Systems has cited internal emails and texts that they've gathered during this discovery period to say that these Fox News executives and Fox hosts knew that they were promoting false claims about dominion voting systems allegedly or falsely rigging the 2020 election.

Now, Fox News, for its part, says that it is fully protected by the First Amendment here.

So, what's happening inside the courtroom right now is that this judge is hearing arguments about whether to decide this case either in favor of Dominion or Fox News right now and not let it proceed to trial. It's going to be a lengthy set of arguments throughout the morning and afternoon. It's quite likely that this judge won't decide this case and that it will move forward to trial next month.

And, interestingly, John and Erica, just overnight Dominion is now asking that if this case does move to trial, they want to bring to the witness stand in-person Fox Corporation Chairman Rupert Murdoch and his CEO son Lachlan. They want them here in Delaware to testify in this trial. Of course, Fox is pushing back, saying that it would present an undue hardship for both Rupert and Lachlan Murdoch, and also saying it would really just create a media circus.

So, there is a lot to come in this very high stakes case. Of course, a lot at stake, $1.6 billion in this defamation suit.

Guys.

BERMAN: Look, that would be explosive if they needed to testify.

Jessica Schneider, great to see you. Thank you for your reporting.

Just into CNN, the disturbing video and 911 call from the deadly encounter between Virginia sheriff's deputies and a 28-year-old man who was in their custody. We are live outside the courthouse to walk you through the details, next.

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[09:42:21]

HILL: This just into CNN. We've obtained video of a deadly encounter between a 28 year old man and seven sheriff's deputies. Now, this is a story that we were telling you about last week. The young man, 28 years old, Irvo Otieno, died later on. The deputies, in addition to three hospital employees, have since been charged with second-degree murder.

BERMAN: CNN's Brian Todd is in Virginia covering this for us.

Brian, this video, we're told, disturbing. What can be learned from it?

BRIAN TODD, CNN CORRESPONDENT: John and Erica, what you can see in this video is kind of a dramatic -- kind of a slow-moving but very dramatic encounter that he has with these deputies, I can call it an encounter, I guess, because they're pretty much on top of him the entire time.

The first video, though, that we see is of him being brought into the intake ward at Central State Hospital. It's a mental health facility in Petersburg, Virginia. This is surveillance video of him being brought into that hospital on the morning -- excuse me, on the afternoon of Monday, March 6th. You can see deputies bringing him in. They're kind of holding him up. He is in shackles and leg irons. He's not necessarily able to support himself, at least it doesn't look like that on the video.

They bring him in. Then they get him seated basically on the floor by a chair. There's a chair right there, but he's not in the chair, he's on the floor with deputies restraining him at that point.

Several minutes pass by and then they get him on his -- on his stomach -- on his side first, I believe, then on his stomach on the floor where they are restraining him for several minutes. According to the prosecutor, Ann Baskervill, they're holding him down for a total of at least 12 minutes.

And at various points there are seven deputies on him and then allegedly three security guards on him. There are different numbers of people on top of him at once. But at one point in this video you do see all ten people on top of him, putting pressure on him. And then, you know, at some point he does -- he does passed away during this sequence. It's not quite clear the moment he passes away, but in some of the video we've seen you can still -- you can clearly see him appearing lifeless in that video.

There are also some 911 calls that were placed at about -- starting at 4:40 p.m. on that day. And this -- these are hospital employees calling 911, saying that he was being -- had been aggressive at one point but also that he was not breathing.

Here's a recording of those 911 calls.

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EMPLOYEE: We need an emergency, um, what you call this again, an EMS here in Central State Hospital in St. Petersburg, Virginia.

DISPATCHER: OK, what's the problem?

EMPLOYEE: So, the patient is a new admission. So, we're still in the admission unit.

[09:45:01]

And then he's very aggressive. So --

DISPATCHER: What building?

EMPLOYEE: Building 39. It's a maximum security unit. So, they're doing CPR right now. And he's -- there's no pulse anymore.

DISPATCHER: I'm sorry, is the patient aggressive or is he not -- he's not breathing?

EMPLOYEE: No, he used to be aggressive, right, so they're trying to put him in restraints. Then eventually he's in - he's no longer breathing.

DISPATCHER: Are they doing CPR?

EMPLOYEE: Yes, they do. They're doing right now.

(END VIDEO CLIP)

TODD: So -- and later in those 911 calls, there are other 911 calls that are made by those Central State Hospital employees after that sequence that you just listened to where they're complaining that the EMTs are not there yet. They were told by the dispatcher that the EMTs were en route. Then they called later on and they complained that they're not there yet. They say it's unacceptable. That, you know, that they're - that they need to get there.

What is not quite clear is whether the 911 calls were placed either before or after Irvo Otieno was deceased. The prosecutor believes that those calls were placed after he was deceased, but that's not quite clear, at least some of the timelines that we have and some of the video we have, guys.

We were just in here for the grand jury swearing in, that they brought one of the defendants up via video, and talked to him about his possible arraignment. They swore in the grand jury just a few moments ago, brought in five witnesses and then took them to the grand jury room. So, the proceedings here are underway.

You've got seven sheriff's deputies charged with second-degree murder and three employees of Central State Hospital charged with second- degree murder. And you can see some of them, of course, in that video. At one point at least one of the sheriff's deputies has his knee on Irvo Otieno's neck for an extended period. Very disturbing to look at.

HILL: Yes. Brian Todd, really appreciate the update there. It's important. Thank you.

BERMAN: This morning, federal court documents show that the weapon used in the deadly abduction of four Americans by a Mexican cartel earlier this month, that gun was actually purchased in the United States.

HILL: The man who bought that gun allegedly knew it would be used by the Gulf Cartel.

CNN's Josh Campbell is following these new details for us.

So, purchasing a gun to sell to a cartel in the U.S. I mean, walk us through what this means and specifically the broader picture of cross- border gun trafficking here, Josh.

JOSH CAMPBELL, CNN SECURITY CORRESPONDENT: Yes, good morning.

This is a very serious issue according to both Mexican and U.S. law enforcement officials. And, you know, I've been reporting on America's fentanyl crisis at length, and that is this deadly drug being trafficked by drug cartels in Mexico into the United States. But, interestingly, Mexican officials say that their citizens are victim to a deadly export from the U.S. And that is guns. As you mentioned, we're learning from court records that one of the weapons that was allegedly used in that kidnapping of four Americans came from the United States.

Now, when it comes to the number of weapons trafficked from the U.S. into Mexico, hard figures, they're difficult to come by. Obviously, we're talking about illicit weapons. But I'll show you some estimates here. The government of Mexico says that there are about 600,000 illegal guns trafficked into that country every year. Of that, 68 percent come from the United States.

Now, those figures track closely with figures from the ATF. Just, for example, from 2014 to 2018, of the weapons recovered in Mexico that they traced, they found that 70 percent of those came from the United States.

Now, we've been reporting on this lawsuit from 2021 that the Mexican government filed in U.S. federal court, basically going after gun manufacturers. That lawsuit was signed on by various attorneys general from across the United States. And I'll read you part of those allegations. They say that the defendants, gun manufacturers, design, market, distribute and sell guns that go directly to these drug cartels. They also say that gun makers aid and abet the killing and maiming of children, judges, journalists, police and ordinary citizens.

Now, of course, U.S. gun manufacturers have repeatedly said that they're not responsible if someone illegally uses their product. Of course, that lawsuit that I mentioned was recently tossed out because here in this country gun manufacturers enjoy robust legal protection from litigation. It is worth noting that the Mexican government signaled just days ago that they intend to appeal that decision. They want to see this lawsuit go forward. We'll see what happens there.

But, you know, finally, for those who might be saying, well, this is on the Mexican government. They're not doing enough to go after the cartels. You know, they're ineffective themselves. It's worth pointing out that this is not just an issue facing Mexico. Our neighbors to the north, in Canada, have expressed serious concerns as well. Just last year a deputy chief in the city of Toronto told the parliament of Canada that of the crime guns that they found last year, 86 percent of those handguns were from the United States, guys.

HILL: Wow, 86 percent.

BERMAN: Wow.

HILL: Yes, as you point out, it is an issue on both sides of the U.S. border, north and south.

Josh, really great reporting. Appreciate that update. Thank you.

CAMPBELL: Thanks.

HILL: Just ahead, teachers in the nation's second largest school district supporting fellow school employees. Why the union leader says it's worth it for staff to call a strike today.

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[09:53:53]

BERMAN: No school in Los Angeles today. The union representing cafeteria workers, bus drivers, custodians and teacher aides is on a three-day strike as of today. A Los Angeles teacher unions says its members will honor the strike.

HILL: So, schools are shut down for the more than 500,000 public school students in the district.

CNN national correspondent Nick Watt is live in L.A. this morning with more.

So, how close are these sides? This is - they've been in talks for a long time now, Nick. Just remind us of what the gulf is between the two sides, what they're asking for.

NICK WATT, CNN NATIONAL CORRESPONDENT: Yes, well, Erica, they have been negotiating for nearly a year. And they have gotten somewhere, but not far enough.

You know, yesterday, we were told that there was going to be last- ditch talks. And then they fell apart before the sides even got to the table. That is the kind of atmosphere that we are working in here.

You know, the school district calls this strike illegal. The union says that the school district has been intimidating its members. So, the reality is this is what we have since 4:30 this morning on a cold and wet -- for Los Angeles, a cold and wet morning, picketers outside this bus depot.

[09:55:10]

Now, the union is demanding more money, better working conditions, and they say respect. The school district says, listen, we'll give you a pay raise, we're giving you as much as we possibly can, but we can't put the school district into the red. That's illegal. So, there is an impasse.

We will hear during the day updates from both sides as they try hammer something out. The superintendent said he wasn't even going to go home last night in the hope that the other side would come to the table.

Now, of course, while the adults argue, while the adults stand out here demanding their rights, it is, of course, kids who will suffer. This is a huge school district. About half a million kids won't be going to school for at least the next three days.

Guys.

BERMAN: Nick Watt, in the middle of it all, in the middle of the adults who are out there protesting and striking, while the kids stay home.

Thanks, Nick.

So, as the possibility of an indictment for former President Trump is in focus today, we have the very latest on the Manhattan district attorney's known plans. That's next.

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