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Israel Launches Rockets Into Gaza, Lebanon After Rocket Attacks; U.S. Economy Added 236,000 Jobs In March, Missing Expectations; Ousted Tennessee Lawmaker Vows To Keep Fighting. Aired 2-2:30p ET

Aired April 07, 2023 - 14:00   ET

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

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FREDRICKA WHITFIELD, CNN HOST (on camera): Hello, everyone, I'm Fredricka Whitfield in New York. Welcome to the CNN NEWSROOM.

And we began in the Middle East where tensions are boiling over into bloodshed on what's considered some of the most sacred holy days of the year for the world's three major religions recognizing Easter, Passover, and Ramadan.

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WHITFIELD: Israeli Defense Forces launching major retaliatory strikes in both southern Lebanon and Gaza this morning targeting sites belonging to the Palestinian military group Hamas. And just moments ago, an official told CNN that the operations in the two areas are now over as long as there are no new rocket fires.

And these attacks happen just hours after dozens of rockets were launched from Lebanon in what's considered the largest barrage fired from there in nearly two decades. This all follows the Israeli forces- led raids earlier this week on one of Islam's holiest sites, the Al- Aqsa Mosque in Jerusalem. And today, the IDF began mobilizing Military Reserve units while vowing to de-escalate the situation.

We have reporters covering both sides of the conflict. CNN's Scott McLean is in Beirut. Let's first go to CNN's Fred Pleitgen live near the Gaza Strip. Fred, what more do we know about what the Israeli Defense Forces struck this morning?

FREDERIK PLEITGEN, CNN SENIOR NATIONAL CORRESPONDENT (on camera): Hi, there, Fredricka. Well, they say that they struck several targets inside the Gaza Strip, a lot of them being tunnels but then also what they call research and development facilities from Hamas, from the militant group that obviously controlled the Gaza Strip. Obviously, the Israelis are saying that in some cases, Hamas is actually building rockets there that have been fired towards Israel.

And you mentioned the fact that overnight, there were also a lot of rockets that came from Gaza towards Israeli territory. The Israelis managing to intercept a lot of those rockets. Some of them landed in open fields, but one actually did land, an account -- in a town called Sderot, which is also right near where I am right now, on the edge of the Gaza Strip as well.

Nevertheless, you're also absolutely right, Fredricka that the Israeli Defense Forces spokesman told me that Israel wants to de-escalate the situation. Here's what he said.

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LT. COL. RICHARD HECHT, INTERNATIONAL SPOKESMAN, ISRAELI DEFENSE FORCES: We want to de-escalate. I mean, there's a very, very sensitive weekend ahead with Passover, Ramadan, and Easter all aligning. And we're looking for a -- hoping for a quiet weekend. Although we had another attack right after the prayers in Jerusalem in the Jordan Valley, but we look -- we are looking to de-escalate.

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PLEITGEN: So, you have the Israeli Defense Forces saying that they want to de-escalate the situation. Just to tell you what's going on right now as we stand on the ground here. You did just mention that a source in the Israeli defense structure said that right now these operations are over if there are no new rocket launches from Gaza and from South Lebanon.

What we're seeing right now here on the ground on the edge of Gaza -- and the lights that you see behind me, that is already Gaza. As the Israelis obviously having some pretty tense calm here on the edge of Gaza, there are still drones in the air all the time. So, clearly, the Israelis watching the situation very close, while at the same time, obviously, right now it is calm here on the edge of Gaza, Fredricka.

WHITFIELD: All right, thanks so much, Fred. And, Scott, you're in Beirut. How are people there responding to all of this?

SCOTT MCLEAN, CNN CORRESPONDENT (on camera): Hey, Fredericka. There is a mixture, it seems of concern, and also a relief. Concern that things could escalate further, especially given what we saw overnight in these retaliatory strikes from Israel that at first seemed to hit some pretty benign, pretty insignificant targets yet later. A Lebanese security source told my team here in Beirut that those actually weren't benign targets. These actually were targets that belong to Palestinian militant groups that actually did have weapons at them.

And so, there's plenty of concern here that things could escalate being expressed by the UN, by that same source. But there's also relief about who was supposedly involved in the -- this barrage of rockets from Lebanon into Israel and, more importantly, who was not. This is the Lebanese Foreign Minister earlier today. Listen.

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(BEGIN VIDEO CLIP) ABDALLAH BOU-HABIB, LEBANESE FOREIGN MINISTER: But we found out that this Palestinians that did the -- not Hezbollah at all. And it is really good that these are Hezbollah nor Israel is escalating.

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MCLEAN: You can hear the relief in his voice there, obviously realizing that were Hezbollah to be involved, obviously, the risk of things getting out of hand would be a heck of a lot higher. Hezbollah figure -- even saying earlier today that the deterrent power balance remains in place. In other words, the war would not turn out well for either side.

Now, the foreign minister also said that his government has worked hard to try to convince all the various factions to turn down the temperature. But given the reality in this country and the complexities in this country and in the wider region, he also acknowledged that essentially, he is relying on Hezbollah to relay his message to these Palestinian factions. He's relying on the United States to relay the message to Israel to turn down the temperature.

This is essentially a game of telephone with some pretty dire real- life consequences. And complicating things further, Fredricka is the stark reality that Lebanon simply does not effectively control large swaths of the country. Case in point, the minister suggested that these rockets were actually manufactured in Palestinian refugee camps -- in Lebanon camps that have been there for decades and decades, and yet, Lebanese security forces have really no way to effectively police those areas, Fredricka.

WHITFIELD: They're feeling powerless. All right, Scott McLean, Fred Pleitgen, thanks to both of you. Appreciate that.

All right. For more now, I want to bring in Robin Wright. She's a contributing writer for The New Yorker and a fellow at the Woodrow Wilson International Center for Scholars. She's also the author of the book Rock The Casbah: Rage And Rebellion Across The Islamic World.

Robin, so good to see you. What are your thoughts on that last thought that Scott was making about a -- almost sense of powerlessness over the Palestinian sites there in Lebanon?

ROBIN WRIGHT, CONTRIBUTING WRITER, THE NEW YORKER: Well, Lebanon unfortunately is a failing state today. There are still multiple armed militias, notably Hezbollah, but also some Palestinian radical factions. So, the Lebanese military has a hard time coping with the militias given the domestic crises in Lebanon.

The reality is, there is a moment of calm right now. But the problem is that long-term, the central issues between Israel and the Palestinians, Israel, and Hezbollah, two different layers, one kind of local, one regional, still have not been resolved. And so, the potential for more tension is real, whether it's in the next 24 hours or the next few months. The diplomacy has made strides in the last three years, but not enough to crack the core issues.

WHITFIELD: So, this is the worst outbreak of violence since 20 -- 2006. But is it you're feeling that something is different here?

WRIGHT: Well, over the last three years, the Arabs and the Israelis have managed to engage in regional talks led -- that led to the Abraham Accords, there's a different kind of relationship. So, there is some hope that the broader issues. It used to be for more than 70 years that the diplomacy was focused on solving the Palestinian issue as the root to solve the broader Arab Israeli problem.

Now, on solving the real -- (AUDIO GAP) -- and Arab states and the Palestinians -- (AUDIO GAP) -- have been now for a number of years. And so, there has not been any progress on that immediate issue. And so, as a result, it flares occasionally and probably will in the future.

WHITFIELD: Our signal with you is a little intermittent, but I'm going to ask another question if I might before we possibly lose you altogether. So, you know, how much are these holidays, Passover, Ramadan, and Easter, factoring into the tension right now?

WRIGHT: This is the first time in 30 years that the three holidays have coincided. There's another five days of Passover, another two weeks of Ramadan. So, this is a particularly sensitive time when religious identity and religious passions are at an all-time high. And so, this is a volatile time for all three religions and everyone in the Middle East.

WHITFIELD: The Israeli defense forces say that you know, wants to de- escalate these tensions, but we're also hearing that they're mobilizing reserve units. They call it a preventive measure. Is that how Palestinians and Hamas will see it?

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WRIGHT: Well, the Israelis are trying to signal, look we are repaired if anyone tries to attack us again. This is in some ways both a preventive measure and signal. The -- needless to say, the Palestinians will probably get this as worrisome.

And -- but whether the Palestinians want to take on the might of the Israeli Air Force and Army, I doubt it. You know, they're vastly outnumbered, vastly outgunned. So, it may be that they have had their say in response to tensions at the Al-Aqsa Mosque, and they may want -- may not want to bring on a full-scale war.

WHITFIELD: Are you or is anyone hopeful that there will be some sort of agreement to end this current round of violence?

WRIGHT: Well, the Egyptians have been engaged in deep diplomacy messaging back and forth. Egypt has been the primary interlocutor between Israel and the Palestinian factions. So -- it's particularly in the West Bank where Hamas and Islamic Jihad are based.

So, I think there is an effort to try and defuse the crisis at the moment. Whether it lasts, you know, indefinitely, you know, is very doubtful as long as there's not kind of something bigger diplomatically in the works. WHITFIELD: Robin Wright, we'll leave it there. Thanks so much. Good to see you.

WRIGHT: Thank you.

WHITFIELD: All right, and new developments today out of Russia. State media confirms that Wall Street Journal reporter Evan Gershkovich has been formally charged with espionage. He has denied all the allegations. The U.S. embassy in Moscow still has not seen -- not been granted consular access to the detained journalist.

Earlier this week, Secretary of State Antony Blinken said he believes Gershkovich is being wrongfully detained, though the White House has yet to make that distinction. Gershkovich's next court date is set for April 18.

And the latest jobs report showing a cooldown in the labor market and that could be welcome news for the Fed. But the CEO of JPMorgan warns there are storm clouds ahead for the economy. Hear that exclusive interview next.

And Florida investigators announced arrests in connection with the recent shooting deaths of three teens. Among those taken into custody, a 12-year-old. What more we're learning about the motive?

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WHITFIELD: Welcome back. Today's jobs report revealed a slight cooldown in the labor market. Employers added only 236,000 jobs last month. Meantime, the unemployment rate dropped to 3.5 percent.

CNN Business Reporter Rahel Solomon is here to break down the numbers. Rahel, great to see you. So, this is the first Jobs Report in a year that came in below expectations. What is going on?

RAHEL SOLOMON, CNN BUSINESS REPORTER (on camera): Fred, good to be with you. Yes, so let's take a look at the numbers, right? So, 236, it was slightly below expectations. And we can show you sort of what we're looking at over the last year, how this compares with the last year.

So, 236, to put that in context, the expectation was closer to 239. Definitely on the lighter side. But this, you could argue was just very vote -- robust job growth. And so, what we're seeing is a gradual cooling, a normalizing so to speak.

I can also tell you in this report, Fred, we saw a job force -- labor force participation. The share of Americans actually participating in the workforce, we saw some nice gains there. Almost half a million people joined the workforce either decided they were going to look for a job or they actually started working. So, that has to be music to the ears of people at the Fed who have needed to see a greater supply of workers. Let's take a look at unemployment. The unemployment rate, as you said, falling to 3.5 percent. That's pretty much -- I got to work on my penmanship. It's pretty much a 50-year low.

But, Fred, take a look at this. This is really noteworthy. So, the unemployment rate for black Americans continues to be above the national average but falling to a record.

This is the lowest it has ever been since the BLS started taking this data since 1972, falling to five percent for black Americans overall. And for black women, actually fall into 4.2 percent. That is also the lowest it has ever been since 1972, Fred.

WHITFIELD: All right, that's encouraging, aren't you -- you mentioned job gains, so where are they? Who is hiring?

SOLOMON: Yes. So, let's take a look at that. So, this is part of a trend that we have been seeing for quite some time now. Leisure and hospitality, they are still adding jobs after the pandemic. So, getting back to where they were before the pandemic, 72,000 jobs.

Fred, this is also when we look at consumer spending. Well, we're still spending. We're still going out to restaurants. We're still traveling. We're still participating in the services side of the economy. But also, the government adding almost 50,000 jobs in professional and business services.

So, this is sort of a nice and easy type of report as JPMorgan put it today, a gradual cooling. But I would argue probably the best-case scenario in an environment where we needed to see some cooling.

WHITFIELD: All right, very good. Rahel Solomon, thanks so much.

All right. Speaking of JPMorgan Chase, the head of America's largest bank warns that there are storm clouds ahead for the nation's economy. JPMorgan Chase CEO Jamie Dimon spoke to CNN in his first interview since the recent banking crisis. And he says despite the collapses, he believes the banking system is strong, but that the economy may not be in the clear.

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POPPY HARLOW, CNN ANCHOR: Is the current banking crisis over?

JAMIE DIMON, CEO, JPMORGAN CHASE: I -- this is not 2008.

HARLOW: Is the American banking system truly safe and secure?

DIMON: Yes.

HARLOW: Has this banking crisis, even though you think it's almost over, which I'm really glad to hear, though increase the chances of recession here?

DIMON: Yes.

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WHITFIELD: All right. Joining me right now to discuss is Mark Zandi, Moody's Analytics Chief Economist. Good to see you. So, what's your reaction to what Dimon said?

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Well, I agree. I think the banking crisis is over.

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We might see another failure or two, but that would likely be by a very small institution. And the government is fully engaged here and has everyone's back. So, I'm not worried about the banking crisis going forward, so I agree with that.

And, of course, there's going to be fallout. Banks are much more cautious in their lending as a result of all this, particularly small and mid-sized banks. And, of course, they're very critical to consumers you know, buying cars and needing credit cards, and of course, small businesses that you know, kind of drive the economic engine in terms of investment and hiring and economic growth. So, we will see some fallout.

I -- you know, my senses are maybe a little more optimistic than the CEO of JPMorgan. I -- you know, obviously, recession risks are high. But, you know, getting reports like today's job numbers, it gives you some confidence this economy is very resilient and it can withstand a lot. And I think it has a good chance of navigating through without going into recession.

WHITFIELD: So, what was -- what is your take on what is happening with the labor market slowed down? What does it mean to you?

ZANDI: It's good news. It's threading a needle, Fredricka. You know, we need to see slower job growth, slower wage growth, moderation in how tight the labor market is because that's really critical to getting inflation back down to something that we all feel comfortable with. So, this -- today's number is consistent with that.

And, of course, we don't want the labor market to fall apart. We don't want to see job a lot -- a lot of jobs lost. We don't want to see unemployment rise very quickly. And that's today's report suggests that's also the case.

WHITFIELD: Yes.

ZANDI: So, we're -- the economy feels like it's threading this needle. Now, that obviously highlights the risks. I mean, this is a bit tricky. But so far, so good. It feels like we're -- you know, we're going down the kind of the middle of the strike zone here.

WHITFIELD: Yes. There's a lot of highs and lows, and everyone interprets them, you know, differently or that is a lot of people interpreted differently.

ZANDI: Indeed. WHITFIELD: So, the unemployment -- the low unemployment rate, I mean, most would think that this is a good thing. So, then why are there those who think it's a problem?

ZANDI: Well, in my view, it's a good thing. 3.5 percent unemployment, you know, that's consistent with how low unemployment got before the pandemic, and we weren't worried about inflation at that point in time. So, I think this economy can live with that kind of low unemployment.

Obviously, people are nervous that that low unemployment, that's consistent with a very tight -- such a tight labor market, that labor costs are going to rise to a point where inflation remains a problem, and the Feds going to have to continue to raise interest rates. We'll have to see. But my sense is that you know, a three-and-a-half percent unemployment rate is kind of where we want it to be, you know. Very low. We want people to work.

We mentioned the 5 percent black unemployment rate, that's fantastic. But I don't think it's too much that it will result in the kind of wage growth that's going to result in the inflation that the Fed will have to raise interest rates and ultimately push the economy into recession. So, three and a half percent feels pretty good to me.

By the way, Fredricka, that's where we've been for a year, you know. Give or take three and a half percent per year. So, I take it.

WHITFIELD: All right. So, you think there is an end to any kind of rate hike you know, cycle?

ZANDI: Yes, we're close. You know, the economy -- getting these today's jobs numbers, it does suggest the economy's throttling back. We are going to see more layoffs. I mean that's in large part because they were exceptionally low. I mean, record low-level. So, we're going to see some normalization there. I -- you know I think that's very likely.

And I do think inflation is going to come in here reasonably gracefully. So, yes, I think we have a fighting chance to get through all this without -- in despite all the slings and arrows, the pandemic --

WHITFIELD: Yes.

ZANDI: -- the Russian invasion of Ukraine, the banking crisis, I mean, this economy is getting hit by a lot of stuff --

WHITFIELD: It's a lot.

ZANDI: -- but yet, it's navigating through.

WHITFIELD: I think it's nice you use the word gracefully. All right, optimistic. Mark Zandi, thanks so much. Good to see you.

ZANDI: Thank you. Take care. WHITFIELD: All right, the political battle, well, it's far from over. That's the message from two Tennessee Democratic lawmakers who were expelled by a Republican supermajority after they protested against gun violence. Up next. We'll speak to one lawmaker who managed to avoid that expulsion.

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JUSTIN JONES, EXPELLED DEMOCRATIC STATE REPRESENTATIVE, TENNESSEE: Rather than pass laws that will address red flags and banning assault weapons and universal background checks, they passed resolutions to expel their colleagues. And I think that the issue is over.

UNIDENTIFIED MALE: Yes.

JONES: We'll see you on Monday.

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WHITFIELD: That's the now-expelled Tennessee representative Justin Jones making it clear that he and fellow representative Justin Pearson will keep up their fight for gun reform. Republicans voted yesterday to expel the two black lawmakers from the statehouse in a showdown over gun reform.

Vice President Kamala Harris is set to leave for Nashville shortly to meet with them. She will also meet with the third representative Gloria Johnson, who survived the expulsion vote. All three had led a protest against gun violence that halted legislative proceedings last week. GOP lawmakers accused them of bringing disorder and dishonor to the House.

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JEREMY FAISON, REPUBLICAN STATE REPRESENTATIVE, TENNESSEE: I feel like if they would have said you know what? We messed up. I mean, what American -- what human won't bring forgiveness and redemption? But they double down and went so far as to staying in the world today and said I'd do it again.

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WHITFIELD: CNN National Correspondent Ryan Young is in Nashville with more on this. So, what is next, Ryan?