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U.S. Plans to Indict Former Cuban Leader Raul Castro; U.S.- China Summit; U.K. Prime Minister Keir Starmer Faces Party Discontent; U.S.-Israel War with Iran; Marco Rubio, the Secretary of Everything; Jerome Powell Ends Term as Fed Chairman; Eurovision Controversy. Aired 4-5a ET
Aired May 16, 2026 - 04:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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LYNDA KINKADE, CNN ANCHOR AND CORRESPONDENT (voice-over): Hello and welcome to our viewers. Joining us here in the United States and all around the world. I'm Lynda Kinkade.
Just ahead, Cuba's former president could soon be facing criminal charges. We'll have details on the U.S. working to indict Raul Castro and the implications that it could have for both countries.
U.S. president Trump considers the next steps for the war with Iran following his trip to China. We'll go live to the Gulf with the latest on the conflict.
Plus the mixed signals Trump is sending about U.S. relations with Taiwan, an issue China's leader said was the most important.
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UNIDENTIFIED MALE (voice-over): Live from Atlanta, this is CNN NEWSROOM with Lynda Kinkade.
KINKADE: The U.S. is turning up the pressure on Cuba by preparing to indict Raul Castro, the Communist country's former president. That's according to sources. This comes just days after the CIA director, John Ratcliffe, met with top intelligence officials from the ministry of the interior in Havana.
The 94-year-old Raul Castro is the brother of the late Fidel Castro, who led the Cuban revolution back in the 1950s. Now he may face various charges, including over Cuba's shootdown of two planes back in 1996, in which four people died, including three Americans. A Cuban American exile organization owned those planes.
President Trump on FOX News indicated that Cuba may want to make a deal.
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BRET BAIER, FOX NEWS HOST: Is Cuba going to turn to us and make a deal?
TRUMP: I think so. I mean, look, I've been hearing about Cuba since I'm a little boy.
They've been saying, what's going on with Cuba?
And I think we'll be turning it. Marco has been very effective and the whole group has been very effective. It's, yes, I think they're going to have to come to us. It's a failed nation. It's a totally failed nation.
BAIER: And they're taking the aid now.
TRUMP: They've been taking the aid. They want aid. They need help.
(END VIDEO CLIP)
KINKADE: It comes as Cuba's energy crisis, fed by a U.S. fuel embargo, worsens, causing unrest. CNN's Patrick Oppmann reports from Havana.
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PATRICK OPPMANN, CNN CORRESPONDENT: Tensions between the U.S. and Cuba continue to escalate with news the Trump administration may be seeking an indictment against former Cuban leader Raul Castro.
For months now, there seems to have been, a dynamic playing out where Cuba is offered carrots, economic aid and coercion.
The idea that further economic sanctions could be put into place that officials could be targeted and that this indictment for the 1996 shoot down of civilian planes that have come into Cuban airspace, could be issued against, former President Raul Castro, who, of course, is very significant here.
Although he is 94 years old and retired, he is ultimately considered the most powerful official by many on this island.
That is why the U.S. has been reaching out to him and his grandson who is his bodyguard and has been an emissary and in between the U.S. and Raul Castro to try and come up with some kind of deal that would open up Cuba politically and economically.
Force through reformers of the kind that the Cuban government has simply resisted over the years.
It seems like those negotiations have broken down because I've been told by Cuban officials that if Raul Castro were to face an indictment, which is still an if at this point but that is the indications we are receiving that the U.S. is seeking this indictment against a former Cuban leader.
And Cuban officials have told me that, if that were to happen, they would not foresee talks going further, that it would become an issue of whether or not the United States would try to seize Raul Castro as they did Cuba's ally, Nicolas Maduro, if there would be open military conflict between these two countries.
Certainly, for the many Cubans caught in the middle who are suffering the worst power outages of their life, we're talking about 20-plus hours of power outages each day.
People are going out in greater numbers at night to protest against their government often who they blame for this crisis for not investing in the infrastructure. These are really the people paying the price.
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And when you ask them, what do you want to happen?
They say they really don't care at this point. They just want the power on. They just want to have a normal life.
But the reality seems to be that life is going to get harder for Cubans, at least in the near term, as these tensions continue to ratchet up -- Patrick Oppmann, CNN, Havana.
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KINKADE: Well, CNN spoke to a foreign policy expert, Eric Farnsworth, about U.S. spy chief John Ratcliffe's trip to Cuba. Take a listen.
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ERIC FARNSWORTH, SR. ASSOCIATE, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: I mean, it's not unprecedented. CIA directors have gone to Cuba before, but what's unprecedented is the fact that it is so public just as you've indicated and the CIA itself is putting pictures on social media and advertising it.
I think it's very relevant to show that first of all the United States is engaged at the most senior levels.
But that -- what they're talking about is not just an easy transition, but some hard asks of the Cuban government and no doubt some of those would include the elimination of Russian and Chinese influence in Cuba, for example, at the intelligence gathering base at Lourdes, is which a listening station to the United States.
It would probably also try to resolve the whole healthcare issue that was targeted at CIA agents in Havana going back a number of years ago, which still remains unresolved and trying to open the case files there and see what really happened and who's to blame for that and any number of things as well.
But to have the CIA Director there clearly the asks are on the security and intelligence side.
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KINKADE: Well, now to the signals the U.S. president is sending about what might lie ahead with the war in Iran. Donald Trump says Tehran's latest proposal was unacceptable. He claims Iran had agreed to give up its nuclear dust, referring to enriched uranium but then backtracked.
According to Iranian state media, the country's foreign minister says uranium enrichment is currently not on the agenda and will be addressed at later stages.
President Trump posted on social media that his military campaign against Iran is, quote, "to be continued," suggesting he could resume attacks.
The conflict with Iran was a key topic of discussion when Mr. Trump met with Chinese leader Xi Jinping in Beijing this week, the U.S. saying that China agrees that Iran cannot be allowed to have a nuclear weapon. For more, Leila Gharagozlou joins us now from Abu Dhabi.
Leila, good to have you with us. So president Trump says he's rejected Iran's latest proposal because it appears that Tehran has backed away from discussions regarding the exporting of or surrendering of enriched uranium.
What more are you hearing about the specifics of Iran's proposal and the response, if any, to Trump's suggestion of a potential escalation?
LEILA GHARAGOZLOU, CNN PRODUCER: So Iran, in their counterproposal that they offered up last week, last Sunday, essentially did not focus on the nuclear issue.
They said that they wanted, according to state media, to focus on the Strait of Hormuz, the control of the Strait of Hormuz have their sovereignty be agreed to and also talk about any compensation for damages to the country throughout this conflict. So those were the key points of their counterproposal to the U.S.
And they kind of set the nuclear issue aside and their nuclear program to the side. Now that has been an ongoing issue throughout this war, as well as the war that we saw in June.
When it comes to Iran's nuclear program and this nuclear dust, as president Trump calls it, now the thing to really remember here is that Iran has basically said that their nuclear program is their red line. They're willing to curb it the way that they did over the JCPOA but they're not willing to get rid of their nuclear program.
This is an issue of sovereignty for them. So it's going to be a immovable red line when it really comes down to it.
Now in the face of escalation, they've also said that they are willing to stand up and continue the fight. They said that they're not going to shirk away from any escalation if that is the route that things go, the way that things go. But it's not something that they want and they have said that they are open to some deal.
But ultimately, their issue with the Trump administration comes down to trust. And this is something that the foreign minister said at the BRICS meeting in New Delhi. Take a listen.
(BEGIN VIDEO CLIP) QUESTION: Have you rejected the latest proposal from Iran or where does that stand?
TRUMP: Well, I looked at it and, if I don't like the first sentence, I just throw it away.
QUESTION: What was the first sentence?
TRUMP: An unacceptable sentence because they have fully agreed no nuclear. And if they have any nuclear of any form, I don't read the rest of it.
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GHARAGOZLOU: So as you see, things are very up in the air when it comes to what's going on. President Trump also keeps shifting what he wants from this deal, what he's willing to give.
We've heard him say that he's willing to put a curb on them for 20 years, which means that they could go back to their nuclear program and any potential enrichment after that. So things are up in the air. We have to see how things go. But I do think both sides are preparing for a potential escalation, Lynda.
KINKADE: All right. Leila Gharagozlou in Abu Dhabi, we appreciate you. Thanks so much.
I want to turn now to a CNN exclusive. U.S. officials suspect Iran is responsible for hacking gas tank readers at gas stations in several states. That's according to multiple sources briefed on the matter.
They say the hackers breached systems that monitor the amount of fuel and storage tanks, allowing them, in some cases, to tinker with display readings on the tanks. Private experts and U.S. officials warn that a hack like this could make a gas leak go undetected.
CNN's cybersecurity reporter Sean Lyngaas broke the story. Here's what he said to my colleague Pamela Brown earlier.
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SEAN LYNGAAS, CNN CYBERSECURITY CORRESPONDENT: It's an attempt by Iran to use its asymmetric capabilities, right?
They can't reach the U.S. homeland with missiles or drones but their hacking capabilities are good enough to do things like this to say, we know the U.S. You have some very vulnerable critical infrastructure and here's how we can do this.
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KINKADE: An Israeli security official says the strike targeting the most senior Hamas military leader in Gaza appears to have been successful. Israel says it was going after Izz al-Din al-Haddad, the head of Hamas' military wing. Israel calls him one of the architects of the October 7th, 2023, attack.
CNN has been unable to confirm whether al-Haddad was indeed killed. The director of Gaza's Al-Shifa hospital says the strike in Gaza City on Friday killed at least one woman, wounded another six. The strike comes despite an a ceasefire in Gaza that's been in place since October of last year.
Negotiators have beat the clock to extend the fragile ceasefire in Lebanon. They reached an agreement on Friday, just two days before the current truce was set to expire. As Jennifer Hansler reports, the deal will keep the shaky ceasefire alive for at least a few more weeks.
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JENNIFER HANSLER, CNN SENIOR NATIONAL SECURITY CORRESPONDENT: Israel and Lebanon have agreed to extend a tenuous ceasefire in Lebanon by 45 days following the latest round of talks here in Washington, D.C.
State Department spokesperson Tommy Pigott announced the extension of the ceasefire in a post on Friday after what he described as two days of highly productive talks.
He said that moving forward, the negotiations, which have been mediated by the United States, would continue on two separate tracks. On the political side, they would continue to be held at the State Department, with meetings scheduled for early June.
On the security side, however, they will be moving over to the Pentagon with a meeting scheduled for May 29th with military delegations from both Israel and Lebanon.
In a statement on X, Pigott wrote, quote, "We hope these discussions will advance lasting peace between the two countries, full recognition of each other's sovereignty and territorial integrity, and establishing genuine security along their shared border."
Now following the announcement of this extension, Lebanon welcomed the news. Israel's ambassador to the U.S., who was part of their delegation in these talks, said they were frank and constructive and said there would be ups and downs. But the potential for success is great.
Now the extension is due to take effect on Sunday, when that initial ceasefire was due to expire. However, over the course of that month- long ceasefire, there have been scores of strikes exchanged between Israel and Hezbollah. And it is likely that those violations may continue.
However, an official told our colleague that Hezbollah was willing to agree to a ceasefire if Israel does the same.
Now throughout the course of that ceasefire, Israel has also maintained its ground troops within Lebanon. And just this week they have advanced past the Litani River, which is a key boundary in southern Lebanon -- Jennifer Hansler, CNN, the State Department.
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KINKADE: President Trump is back in the U.S. after that two-day summit with Chinese leader Xi Jinping and the meetings ended without any substantive agreements announced on key issues.
But China's foreign ministry called the summit historic and touted progress on trade and economic concerns.
Investors are voicing their frustration with the lack of specifics that came out of the summit, with all three major U.S. stock market indices closing Friday in the red. President Trump told reporters that he and Xi did not discuss tariffs.
He has said that Taiwan was the most important issue for Xi during the talks and that a pending $14 billion arms sales to Taiwan is a, quote, "very good negotiating chip."
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Joining me now live from Beijing is CNN's Mike Valerio.
Great to see you, Mike. So Xi strongly expressed that Taiwan was the most important issue for him, warning of a conflict if they didn't see side to side.
How is Taiwan responding to the comments, both from the Chinese and the U.S. leaders?
MIKE VALERIO, CNN NATIONAL CORRESPONDENT: I will say that those comments are slowly sinking in or maybe not slowly sinking in but really reverberating, whether you be in Mainland China or you live on the island of Taiwan.
So the latest, we have a statement from the presidential office from Taiwan and you can clearly see that a spokesperson for the president, Lai Ching-te, is trying to steady the conversation. So let's take a look at it before we go to the president again.
The office is saying that they've noted multiple reaffirmations from the U.S. side, that the consistent U.S. policy and position toward Taiwan remains unchanged.
Well, that may be true, of course, Lynda, on paper, that it remains unchanged technically. But if the undercurrents, if the foundations were the same, we wouldn't be talking about it on the news right now.
This is certainly a change when you have the United States president talking about the relationship, unsure of whether to sell arms to Taiwan or not and talking to the leader of China, Xi Jinping, about it.
So let's listen to the president on Air Force One, more comments from him. It was a very newsy plane ride home and we'll talk about it on the other side.
(BEGIN VIDEO CLIP) QUESTION: President Xi said that there was a risk of conflict with the U.S. over Taiwan.
What's your response to that?
TRUMP: I don't think there's a conflict other than we don't need their strait. We don't need much.
QUESTION: On Taiwan, President Xi said there was a risk of conflict with the U.S. over Taiwan.
TRUMP: So no, no, I don't think so. I don't think so. I think we're going to be -- I think we'll be fine.
(END VIDEO CLIP)
VALERIO: OK. So he doesn't think there will be a conflict. But rewinding a couple seconds, he said, quote, "I don't think we need their strait," as in the Taiwan Strait.
And why, of course, that is so consequential, according to the latest Bloomberg shipping data from 2022, it took just seven months for more than half of the world's commercial container ships to go through that waterway.
You know, we've been talking about the Strait of Hormuz for so long being a critical choke point. The Taiwan Strait is another one. TSMC, the advanced semiconductor company, produces about 90 percent of the world's advanced AI chips on which American industries depend.
So when you have the president on Air Force One saying, we don't need their strait and you have the presidential office from Taiwan saying, you know, the policy remains unchanged, there are still myriad questions to get to. So that's Taiwan.
And then we want to talk about trade, some new developments. We actually have confirmation from Boeing. The president was telling Bret Baier on FOX and also to reporters on Air Force One that Boeing has a new order of 200 planes. New confirmation from Boeing that that order could actually be up to 750 planes.
China reserves the right to take it up to that level. But in terms of the theme of this trip, perhaps the tone of the relationship being changed but very short on the details. We don't have details on what kind of planes these are. If these are giant planes or if these are smaller planes, that certainly matters.
And no details on the agricultural deals. So more to come certainly from the White House. We have a lot of questions now that he's back in town. Lynda.
KINKADE: We certainly do. Some small moves but nothing quite substantial. Mike, thanks so much.
Well, president Trump says a major ISIS leader has been killed in an operation in Nigeria. He posted this hours ago that the U.S. and Nigerian forces had tracked down Abu Bilal al Minuki, the group's second in command.
The post says he will no longer terrorize the people of Africa or plan attacks on Americans and that his death has greatly reduced ISIS global operations. Last December, Mr. Trump ordered another strike on ISIS in Nigeria after accusing the group of persecuting Christians.
Well, still to come on CNN, we're going to go live to London for details on the Labour Party discontent with the prime minister, Keir Starmer, and learn about a potential challenger.
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KINKADE: Welcome back.
The U.K.'s Labour Party says it will allow the mayor of Greater Manchester to run for a seat in Parliament. There's been speculation that Andy Burnham wants a shot at the party's top spot. Burnham regularly polls as one of Labour's most popular members.
After big losses in recent local elections in England, Scotland and Wales, there is widespread discontent with prime minister Keir Starmer within the party and a growing possibility that he could face a leadership challenge. CNN business and economics reporter Anna Cooban joins us now live from London.
Great to see you, Anna. So dozens of MPs have reportedly discussed or called for a leadership change internally, though, of course, no formal contest has been announced.
What would need to happen for Andy Burnham to become eligible for a Labour leader contest?
ANNA COOBAN, CNN BUSINESS AND ECONOMICS CORRESPONDENT: Well, Lynda, a lot needs to happen in order for him to win, in order for him to actually stand in this election in Makerfield constituency in the north of England. He's been given permission to do so from the Labour Party but now he needs to be formally selected as a candidate.
He then needs to run. And he will likely be running against a Reform candidate. Now Reform is this hard right party that surged in the local elections last week. So it's anything but a foregone conclusion that he will win, despite his, you know, massive popularity in that part of the country.
And then let's say he wins. He then would need to formally challenge Keir Starmer to the Labour leadership. And so now we're talking weeks, if not months, to potentially see a new Labour leader.
You've got these other candidates, potential candidates up there; Angela Rayner, the former deputy prime minister; Wes Streeting, the health secretary who resigned a couple of days ago.
So the U.K. is now finding itself in yet another leadership contest. And so there is this growing disillusionment with the U.K. political system over the past few years because of this revolving door of prime ministers.
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Now I want to head over to some of the residents of Makerfield to give you their take on where this next election is going to take them.
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UNIDENTIFIED FEMALE: I would love it to become an MP but not quite for the leadership at the moment. He's done loads for this area. Really good and a personable person. But I think he should be given a chance.
UNIDENTIFIED MALE: I think he's the right man for the job. He's got all the right credentials and the big thing about him, my opinion is, he's honest.
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COOBAN: So this election really, Lynda, is going to be a real litmus test to see just how popular reform is in a head-to-head battle against Labour. And then that gives an indication about what the U.K. might be seeing in the next general election when we vote for the next government in 2029, Lynda.
KINKADE: And I'm wondering, just in broader terms, Anna, how the electorate across London, for example, is feeling about this political uncertainty right now.
COOBAN: Well, Keir Starmer has repeatedly said that one of the reasons he won the platforms he rode on when he came into power in 2024 was this idea of bringing stability.
If we have a new prime minister in the next few months, then it's going to be the sixth in seven years. Now that instability is something the U.K. used to mock Italy for but actually now Italy has got its second longest serving prime minister.
And now it's the U.K.'s turn to take on the mantle of having just a lot of leadership changes. And there's just this growing disillusionment. Keir Starmer has said he wants there to be stability. And so we'll just have to see what happens in the next few months. But it looks anything but certain that he'll still be in power in the next few months.
KINKADE: All right, Anna Cooban in London. We will check in with you again soon. Thanks so much.
We're going to take a quick break. For our viewers here in North America, we'll have more news in just a moment. For our international viewers, "CNN CREATORS" is next. (MUSIC PLAYING)
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KINKADE: Welcome back to everyone joining us here in the United States, in Canada. I'm Lynda Kinkade coming to you live from Atlanta.
President Trump is hailing the U.S.-China summit as an historic moment after returning to Washington. But the meetings with Chinese leader Xi Jinping were, which were held over the two days, ended without any substantive agreements announced on key issues.
President Trump says that he and Xi discussed Taiwan in great detail. Beijing warned that the issue could spark conflict between the two superpowers but president Trump says he has made no commitment either way on Taiwan and that a pending arms sale to the island democracy is a, quote, "very good negotiating chip."
Taiwan's presidential office released a statement, saying military sales between Taiwan and the U.S. are a reflection of the U.S. security commitment to Taiwan. CNN's Alayna Treene has more.
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ALAYNA TREENE, CNN CORRESPONDENT: President Donald Trump said in a Friday evening interview that he has not yet approved a $14 billion deal to provide weapons to Taiwan, arguing that he views it as a very good bargaining chip. I want you to listen to what he said.
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TRUMP: I haven't approved it yet. We're going to see what happens. I'm holding that in abeyance and it depends on China. It depends. It's a very good negotiating chip for us. Frankly. It's a lot of weapons.
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TREENE: Now in this interview, the president also addressed the longstanding policy of past U.S. presidents and many of the president's predecessors about this idea of strategic ambiguity when it comes to Taiwan's independence.
He noted that the issue of Taiwan was the most important issue for Chinese president Xi Jinping. He also added that they talked the whole night about the issue while he was in China.
He said, I think I know more about Taiwan right now than I know about almost any country."
But he continued to say that he would like to see it stay the way it is and was very noncommittal. When asked whether the U.S. policy toward Taiwan had changed, he said,
"Look, I think people in Taiwan should feel neutral," was the word president Trump used when asked how they should feel about the United States policy toward Taiwan.
He also went on to argue that he does not believe China would attack the island while he was still in office but he also speculated that perhaps they could do so after he leaves office. All to say we knew going into this trip that Taiwan was going to be one of the biggest issues that these two men would address.
We also heard Chinese president Xi Jinping say during this visit, you know, almost offered a veiled warning to the United States, saying, if the Taiwan issue goes the wrong way, it could be very dangerous for the stability of the relationship between Washington and Beijing.
But for now, Trump arguing that the policy toward Taiwan has not yet changed. And he would like to see things stay the way they are -- Alayna Treene, CNN, the White House.
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KINKADE: The U.S. war with Iran was another big topic of discussion during president Trump's trip to China.
Mr. Trump says the first sentence of Tehran's latest proposal was, quote, "unacceptable."
He claims Iran had agreed to give up its nuclear dust, referring to enriched uranium, but then backtracked. He is again calling for Iran to give the U.S. its stockpile of enriched uranium.
The president suggesting it's a top priority even though he does not believe it's necessary except, quote, "from a public relations standpoint. "
Well, for more, let's welcome Nicole Grajewski. She is a nuclear policy program fellow at the Carnegie Endowment for International Peace. Thanks so much for joining us.
NICOLE GRAJEWSKI, NUCLEAR POLICY PROGRAM FELLOW, CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE: Thank you so much for having me.
KINKADE: So you've previously described Iran's enrichment program as a form of strategic leverage rather than clear evidence of imminent weaponization.
Do you still hold that assessment?
GRAJEWSKI: Well, certainly right now, Iran's nuclear program is nowhere near where it was prior to the June 2025 war. So for Iran to actually obtain a nuclear weapon, this would require quite a bit of steps. And essentially they're not there yet. And it's unclear if they've even made that political decision.
KINKADE: So given the current limitations in international inspections, what is the most reliable understanding of Iran's current enriched uranium stockpile?
Like how large are the remaining uncertainties here?
GRAJEWSKI: Iran's essentially blocked out international inspectors actually since June 2025. But we do know kind of where this uranium was prior to that 12-day war.
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And that was mostly located underground in Esfahan, in canisters. So those remain intact. There's also some highly enriched uranium and enriched uranium at Natanz and Fordow but those were largely destroyed during the previous attacks. So we have some understanding of where this material is but not a really perfect picture.
KINKADE: And so given what we know, how close is Iran today to producing a weapons grade uranium, if it chose to rapidly escalate?
GRAJEWSKI: The current stockpile of highly enriched uranium at Isfahan is quite close to weapons grade, though Iran hasn't been able to access that, partly because Iranian enrichment has been destroyed.
Iran's a few years away from actually being able to obtain, you know, new highly enriched uranium or at least enriched uranium up to a point of weapons grade. And so they do face a bottleneck at the moment.
KINKADE: So in practical terms, when we hear policymakers or politicians talk about retrieving or removing Iran's enriched uranium, what would that actually involve physically, technically, diplomatically?
Is that idea a realistic option?
GRAJEWSKI: Well, there's obviously these options during the war about having, you know, commandos or ground troops excavate that uranium from Isfahan. But now, as we're kind of in this mode of negotiations, it looks like any kind of removal of that would involve international oversight -- so the U.N. nuclear watchdog -- excavations.
So these tunnels that have, where the facilities are, have been bombed and they're, you know, largely blocked at the moment. So excavating that and then also shipping out that highly enriched uranium.
And here's where it's actually the role of countries like Russia are really crucial because they have that capability to do so and have done so in the past. And Iran keeps pushing for the Russians to do that if there is an agreement on highly enriched uranium.
KINKADE: So in your view, what is the bigger driver of the current nuclear risk?
Is it higher enrichment levels or is it the breakdown in transparency and verification, given the conflict that's ongoing?
GRAJEWSKI: The breakdown in transparency is actually, I think, the biggest threat at the moment. Iranian centrifuges haven't been under oversight. So this is what you use to enrich uranium. They haven't been under oversight since 2021.
And so it's very feasible that Iran could have hidden these centrifuges. We don't have evidence that Iran is resuming enrichment. But Iran's, you know, potential covert nuclear program, that's still a possibility. And so these negotiations seem to be focused on issues that are, I guess, peripheral to that threat.
KINKADE: And, of course, you have argued that both sides define victory in ways that are incompatible.
Is there a realistic pathway for aligning U.S. and Iranian expectations on enrichment or are these just fundamentally irreconcilable as things stand?
GRAJEWSKI: As long as the United States continues with the policy of zero enrichment -- so prohibiting Iranian enrichment forever in perpetuity -- that's a largely irreconcilable position with Iranians, who view enrichment as their intrinsic right under the nuclear nonproliferation treaty.
However, if there's a moratorium, kind of a time-based moratorium over enrichment, that could potentially open the possibility for an agreement. But as long as the United States prohibits Iranian enrichment, an agreement is very unlikely.
KINKADE: Nicole Grajewski, appreciate your analysis and time today. Thanks so much for joining us.
GRAJEWSKI: Thank you for having me.
KINKADE: Well, president Trump's entourage during his trip to China included top cabinet members. The Secretaries of Defense and the Treasury were there, as well as the secretary of state, Marco Rubio, who emerged as an unlikely star of the trip back home on social media. CNN's Will Ripley reports.
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WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Before the talks in Beijing even began, this became one of the most talked about moments of the summit. U.S. secretary of State Marco Rubio, seemingly mesmerized by the massive chandeliers and ornate ceiling decorations inside Beijing's great hall of the people.
Right away, a flood of memes mocking Rubio for comparing decorating ideas with Defense Secretary Pete Hegseth. Is he getting inspiration for Trump's White House ballroom?
Rubio knowing he'll have to do the White House ceilings when they get back?
And this -- Marco Rubio finding out he has to become the new president of Venezuela, a nod to Rubio's now viral gray Nike tracksuit aboard Air Force One, the same style many online users compared to the tracksuit worn by Venezuelan leader Nicolas Maduro after his arrest earlier this year. QUESTION: What's the context for that?
MARCO RUBIO, U.S. SECRETARY OF STATE: There's no context. It's a nice suit. I mean, I like it, it's comfortable.
QUESTION: It was the same when Maduro was wearing it.
RUBIO: It is. But you know what?
He copied me because I had it before.
RIPLEY (voice-over): President Trump keeps handing Rubio more jobs -- secretary of state, national security adviser, acting U.S. aid chief, temporary archivist, which has helped turn Rubio into an online punchline. The secretary of everything.
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Marco Rubio, finding out he is now the DJ at your wedding.
DJ Marco on the ones and twos on AF1.
Poking fun at this viral video posted by White House adviser Dan Scavino, Rubio deejaying a family wedding and Rubio riffing on Cypress Hill lyrics while talking about Iran's leadership.
RUBIO: The top people in that government are, to say the least, you know, they're insane in the brain.
They should check themselves before they wreck themselves.
RIPLEY (voice-over): More memes. Rubio, after finding out he needs to be the supreme leader of Iran in 72 hours, #worldwarthree.
And on a much lighter note, Rubio as the Easter Bunny.
TRUMP: Who likes Marco Rubio?
All right.
RIPLEY (voice-over): At the Rose Garden, even President Trump making jokes about a future dream team ticket with Vice President J.D. Vance and Rubio.
With the V.P. back in D.C., Rubio is breaking the internet from Beijing, which is especially awkward because technically, China still has him sanctioned.
Beijing sanctioned Rubio in 2020 as a U.S. Senator for criticizing China's human rights record. There's viral speculation online. China changed the Chinese spelling of Rubio's name by one character to quietly let the secretary of state into the country.
But CNN Beijing bureau chief Steven Jiang says Chinese officials have used different translations of Rubio's name for years and Beijing has already been signaling these sanctions applied to Rubio -- the senator, not Rubio the diplomat -- Will Ripley, CNN, Taipei.
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KINKADE: Well, a shake up for the overseers of the U.S. economy, what the change in leadership at the Federal Reserve could mean for everyday Americans.
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KINKADE: The Federal Reserve is changing leadership after eight years under Jerome Powell. Powell's term as Fed chairman ended on Friday. Now during his time, the world's most powerful central bank handled numerous economic crises.
[04:45:00]
Including the record declines due to the COVID-19 pandemic. Powell leaves the role as inflation rose to 3.8 percent in April, the highest since May of 2023. Also, for the first time in three years, Americans' wages no longer outpace inflation.
Kevin Walsh, president Trump's pick to lead the Fed, will face a decision. The White House has been pushing for the Federal Reserve to cut rates and Walsh sounds open to that idea. However, one forecasting tool found there was just a 3 percent chance of a rate cut this year. xxx
Well, joining us now live from Los Angeles is Ryan Patel, a senior fellow with the Drucker School of Management at Claremont Graduate University.
Thanks for joining us.
RYAN PATEL, GLOBAL BUSINESS EXECUTIVE: It's great to join you.
KINKADE: So when history looks back on Jerome Powell's tenure, what will define his legacy?
PATEL: Well, there's a couple of things I think you cannot not include, right?
The transitory, you know, the transit inflation aspect, where it did hurt the Fed's credibility for a period of time. But also his tenure ultimately will be remembered from the moment of a global economy, transferring money from easy money to endless growth expectations.
And talk about how you can't grow forever. And so I think it will look at what people were looking at.
Are we looking at traditional data?
People are questioning these things. So it was a pivotal point underneath his leadership on people were paying more attention to it as well.
KINKADE: And, of course, Kevin Walsh is stepping into the Fed during an incredibly sensitive moment.
What is the single biggest challenge that he inherits on day one?
PATEL: Well, for me, it's not just policy decisions. I think he really needs to set the tone and that starts with confidence and signaling what's coming up to the Fed.
It sounds very simple but to speak directly to, you know, the average person, to the citizens, to businesses, that is his most single thing.
That's the single thing he needs to do is set the tone for what his leadership will be and how he's going to communicate, what they will be doing, moving, not just in the three months but in over a 12 month period of time as well.
KINKADE: And so what does business leadership want the most right now from the Federal Reserve?
Is it lower rates?
Is it simply predictability or is it to ensure that there is clear independence from any political influence?
PATEL: I mean, all the above, I guess. I mean right now, to be very honest, I think it's just, you know, stability, you know, having a clear path. I don't think that they're asking for much more than that, than just interest rates, right?
It's can they, you know, put the money on the sideline and make it work without having to go backwards and face these obstacles?
Uncertainty -- I know it's it sounds simple but I think that alone of creating some kind of stability and not uncertainty is what they're really asking for and letting them kind of grow underneath that aspect.
KINKADE: Yes. Businesses like certainty, as do consumers.
When you look at the data on consumers, are people becoming more cautious or has spending remained surprisingly resilient?
PATEL: Well, I think consumer spending is interesting, right?
They're still spending. But I also think that consumers confidence has dropped as well. I think there have been very cautious on big ticket items moving forward and especially with the jobs report and the way inflation is rising, because that's key in here as well. That messes with the consumer confidence.
Things are a lot more expensive for a period of time. So I think when you see a cost of borrowing still be expensive, it does get people to pull back into trying to have savings to that degree.
So, for me, I think consumers are pretty resilient but they're also being very more efficient with the way they spend their money.
KINKADE: And you've got an ear to CEOs in the business community.
What are their concerns mostly about right now?
PATEL: I think it's a couple of things. I think one, you know, the value that they have to give to stakeholders has been a lot of pressure.
I think also, you see markets at an all-time high for many of these earnings.
Why is that?
Because it's less about growth. It's more about efficiency and using technology like AI to be able to get that.
And I think the third thing is opportunities. Where else opportunities can you get, you know, we saw the CEOs traveling to China this past week. It's just an example of, you know, people looking for opportunities to continue to grow.
And I think that's kind of where I think CEOs are looking for, you know, to try to stay ahead, trying to be more innovative, to be able to create, you know, more value.
KINKADE: Ryan Patel, great to have you staying up late with us this evening. We appreciate your time. Thanks so much.
PATEL: Appreciate you.
KINKADE: Two unexpected names leading the PGA championship as golfers head into round three later today.
[04:50:02]
Why this stage could be set for a first-time major winner. We'll have that coming up next.
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UNIDENTIFIED MALE: Two, one, ignition and liftoff. Go Falcon, go Dragon and go CRS 34.
KINKADE: The SpaceX Falcon Nine rocket lifting off from Cape Canaveral, Florida, launching a Dragon spacecraft. It's carrying nearly 6,500 pounds of cargo and scientific experiments for the International Space Station. The Dragon capsule is set to dock autonomously with the International Space Station on Sunday. Contestants from 25 countries will take to the stage in Vienna,
Austria, in the coming hours for the grand finale of this year's Eurovision song contest. Traditionally, the pop music showdown is a campy, good-natured contest but this year's competition has been plunged into crisis due to the war in Gaza.
Five countries including Spain, the Netherlands and Ireland, are boycotting the event because Israel is taking part. On Friday, hundreds of people attended an anti Eurovision open air concert. It was dubbed "No Stage for Genocide" and some waved Palestinian flags.
[04:55:04]
Next hour I'll speak with a pop music analyst about the controversy, the celebration and the future of Eurovision.
Two unlikely names sit atop the leaderboard heading into day three of the PGA championship. Americans Maverick McNealy and Alex Smalley are tied for first, with neither player having ever won a major title. CNN's Patrick Snell has more from Pennsylvania.
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PATRICK SNELL, CNN CORRESPONDENT: Over the last decade, American names have well and truly dominated the PGA championship.
But now through the first two rounds here, two more names lead the way. Two players at four under par, Alex Smalley and Maverick McNealy, two players with no major titles and just one tour title between them.
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MAVERICK MCNEALY, PRO GOLFER: This is obviously new territory for me but I'm confident that it's going to go into the experience bank. And good or bad, I'm going to learn a lot from it. And really excited to test my game in ways that hasn't been tested before.
And, like, I think this is the next step for me as a professional is, competing and playing well in this type of tournament.
ALEX SMALLEY, PRO GOLFER: I know I'm a good player that can compete out here on the PGA tour but having some finishes that have been able to back up that success the last maybe two or three weeks has allowed me to kind of realize like, oh, OK. Well, I don't even, I can't just compete out here. I can compete for a title.
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SNELL: While in 14 out of the last 15 PGA championships, the eventual winner came from the top seven and ties through the first two rounds. And if that trend does hold up, it's highly likely we could well get another first time major winner come Sunday evening. And with that, it's back to you.
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KINKADE: Thanks to Patrick Snell.
And thanks to you for joining us for this hour of CNN NEWSROOM. I'm Lynda Kinkade. I will be back with much more news in just a short moment.
