Return to Transcripts main page
CNN This Morning
CNN Projects Nevada's Catherine Cortez Masto Will Win Reelection; Arizona's Governor's Race Remains Too Close To Call; Mark Kelly Claims Victory In Arizona Senate Race; Vote Counting Continues With Arizona Governor's Race Too Close To Call; Republican Kari Lake Narrows Gap With Incumbent Katie Hobbs; Blake Masters Yet To Concede Losing Arizona Senate Race; Democrats Claim Control Of Senate After Masto Win In Nevada; Midterm Results Could Jeopardize GOP Leadership In Congress; Top Senate Republicans Call For Delay In Leadership Elections; Election Deniers Go Down In Key Secretary Of State Races; Two Vintage Aircraft Collide Mid-Air At Dallas Air Show. Aired 6-7a ET
Aired November 13, 2022 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BORIS SANCHEZ, CNN ANCHOR: Buenos dias, good morning and welcome to CNN THIS MORNING. I'm Boris Sanchez.
AMARA WALKER, CNN ANCHOR: Good morning to you, Boris. I'm Amara Walker.
Democrats defy the odds and manage to hold on to their narrow majority in the Senate while the House still remains up for grabs. The path to victory for both sides and the coming leadership fight expected in the days ahead.
SANCHEZ: Plus, terrifying moments at a Dallas air show, as two vintage planes collide in mid-air, bursting into flames. What we know about what led up to the accident and the people that were on board.
WALKER: President Biden set to met with Chinese President Xi Jinping on the sidelines of the G20 summit tomorrow. We'll tell you what to expect from the high stakes meeting and why President Biden believes he has the stronger hand going in.
SANCHEZ: Plus, the fed's effort to fight inflation sending credit card interest rates soaring. The real-world costs of carrying that debt and advice on how you can manage it.
It is Sunday, November 13th, the start of a new week. And we are grateful to have you with us. Good morning, Amara.
WALKER: Good morning. Great to be with you, Boris.
And we do begin this morning with a major victory for Democrats. CNN now projects Democrats will retain control of the Senate. Now the biggest unanswered question is who will control the House.
So the critical moment came last night when Nevada Senate race was called for Democratic incumbent Catherine Cortez Masto. Masto had been trailing her Republican opponent Adam Laxalt by a mere 862 votes before the evening ballot drop pushed her over the top.
SANCHEZ: Meantime, the ballot counting continues in Arizona, where the race for governor remains too close to call. Democratic Secretary of State Katie Hobbs maintains a slight advantage over Republican Kari Lake. CNN has already projected that incumbent Senator Mark Kelly will win that Senate race in Arizona. The Democrat giving a victory speech yesterday calling for unity.
(BEGIN VIDEO CLIP)
SEN. MARK KELLY (D-AZ): No one party has a monopoly on good ideas or the support of voters, but I have seen that when we seek to represent everyone, not just the people who voted for us, we're capable of extraordinary things.
(END VIDEO CLIP)
SANCHEZ: By claiming at least 50 seats in the Senate, Democrats can control the chamber with Vice President Kamala Harris casting any tie- breaking vote. However, it could be several days before we know who will hold power in the House of Representatives.
Democrats hold 204 seats right now to Republicans' 211, and the magic number needed to control the lower chamber, 218 seats. There are still plenty of ballots left to count in Nevada, but those votes are expected to trend toward Democrats. CNN Rosa Flores has more.
ROSA FLORES, CNN CORRESPONDENT: Boris, Amara, the stakes were high, the margins were razor thin, but in the end the Democratic incumbent prevailed here. Catherine Cortez Masto gets to stay as a U.S. senator from the state of Nevada, and with that the Democrats get to keep control of the U.S. Senate.
Here's how it all went down on Saturday. Clark County issued a tabulation of about 23,000 votes and here's how those votes were divided. Catherine Cortez Masto received more than 14,000 votes or 60 percent of that batch. Adam Laxalt received more than 8,000 votes, or about 35 percent of that batch. That put Catherine Cortez Masto in the lead statewide by more than 5,000 votes. At that point CNN called the race.
Her campaign taking to Twitter to say -- quote -- "What did people get wrong about this race? The first Latina senator knows her community better than anonymous sources. The daughter of a Teamster knows how to fight for working families. And CCM's" -- or Catherine Cortez Masto's -- "a former AG -- the crime attacks couldn't stick."
Again, the Democratic incumbent here in Nevada, Catherine Cortez Masto, gets to stay as senator of Nevada. Boris, Amara.
WALKER: Rosa, thank you for that. To Arizona now where Maricopa County continues to hold the biggest number of outstanding votes there.
[06:05:02] While CNN and other networks have called that Senate race for Democrat Mark Kelly, it's still too early to call the governor's race. CNN's Kyung Lah with more from Phoenix.
KYUNG LAH, CNN CORRESPONDENT: The count continues in Maricopa County, 85,000 votes released here in the county. Still, more votes to be counted and still no clear answer on the governor's race here in the state of Arizona.
Republican Kari Lake did manage to close the gap just a bit on Democrat Katie Hobbs, who remains the leader. If you look at the numbers, that margin has shrunk just a tad, but not enough to determine if there is a clear winner at this point. But the Lake campaign releasing a little information about what it's like inside their campaign headquarters, saying that they believe that these numbers offer a glimmer of hope. The campaign saying -- quote -- "there is 100 percent a path" and because the vote is still going on, that there is so much we do not know at this stage.
But we do know, CNN has projected a winner in the U.S. Senate race in Arizona. Mark Kelly, the senator, will maintain his seat. The race was called in his favor by CNN. Today, thanking his supporters who backed his race.
(BEGIN VIDEO CLIP)
KELLY: After a long election, it can be tempting to remain focused on the things that divide us, but we've seen the consequences that come when leaders refuse to accept the truth and focus more on conspiracies of the past, than solving the challenges that we face today.
(END VIDEO CLIP)
LAH: Blake Masters has not conceded but indicated in a tweet that he would be open to it after every legal vote is counted. So, how many votes do remain? Maricopa County tells us there are about 185 to 195,000 votes remaining. The anticipation is on Sunday evening, another release of votes of about 80,000 here in this county.
Kyung Lah, CNN, Phoenix.
SANCHEZ: Kyung, thank you so much for that report. So, nearly after a week after the last votes were cast, where do things stand right now? Let's go to CNN's John Berman for the numbers.
JOHN BERMAN, CNN ANCHOR: So this is where we are this morning. The Democrats have 50 seats going forward in the U.S. Senate, the Republicans 49. No matter what happens in this Georgia runoff on December 6th, the Democrats will control the Senate because if it's 50/50, if the Republicans manage to win, Kamala Harris would break the tie, the vice president of the United States. If the Democrat Raphael Warnock does win this, the Democrats would have a 51-49 outright majority, which they certainly want, it would make their lives easier going forward, but the Democrats no matter what, will control the U.S. Senate. Now, how did we get to this point? It came down to Nevada. It was this race between the Democratic incumbent Catherine Cortez Masto and Adam Laxalt that once she was declared the winner, projected as the winner, it meant that the Democrats would control the Senate.
Adam Laxalt had led by as much as 22,000 votes just a few days ago, but the mail ballot, which was still being counted in the last few days, every day that passed Catherine Cortez Masto closed that margin, and when 22,000 votes were processed, Saturday night, she did take the lead by almost 5,000 votes. And CNN projected her the winner, which means that the Democrats will control the U.S. Senate, which leaves the House of Representatives.
Not many people would have thought that we would project that Democrats will control the Senate before we projected that Republicans would control the House, but we can't yet. As of now, Republicans, they, we project that they will win 211 seats at least, Democrats 204. You need 218 seats for the majority in the House of Representatives, which means that the Republicans need to win seven more. The Democrats, if they wanted to maintain control would need to win 14 more.
There are currently 20 races for the House of Representatives that CNN has not projected a winner yet. In these races the Republicans lead in 10. They only need to win seven. The Democrats lead in 10, they would need to win 14. Which means when you look at this map, every district that's colored in here is one of the races that is not called at this point.
The Democrats would need to win every one of these uncalled races they are leading in, which are blue right now. They need to win every one of the blue ones and they would need to pick up four of the districts that are currently red. It would be tough, but it's not impossible. A few of these districts right now you can see in California, for instance, California's 13th district, here's the 84 vote separation right now, only 46 percent in.
This is a district, the California 22nd. Yes, there's a difference right now of five percent, but only 39 percent counted now. A few other districts where there's still room, there's still room. This district right here only 53 percent counted. Only a 2,000 vote lead for the Republicans. And it's a similar situation nearby in Arizona.
In Arizona's sixth congressional district only a 1,300 vote difference, 91 percent reporting. There might be enough vote to change the situation there. I just showed you four congressional districts that are currently -- where there is currently a Republican leader. If the Democrats could flip those that could ultimately give them control of the House of Representatives, if they control every other district they're currently leading in. It is an uphill battle, but as we sit here this morning, it is not impossible. Boris, Amara.
WALKER: John Berman, appreciate that breakdown. So, as we start to get a clearer idea of the balance of power in Congress, the path to securing leadership positions among Republicans in the House and Senate has gotten more complicated.
SANCHEZ: Yes. After falling short of expectations on Tuesday, Kevin McCarthy is going to have to make major concessions to become House speaker. And some Republican senators are calling for a delay in their leadership vote before committing to Mitch McConnell as minority leader.
Let's bring in CNN's Daniella Diaz, who is live for us now. She is at Capitol Hill. Daniella, what are you hearing about this potential interparty battle for leadership?
DANIELLA DIAZ, CNN CONGRESSIONAL REPORTER: Boris, former President Donald Trump has been calling his strongest allies in the Senate and trying to encourage them to place blame on this lackluster performance in the 2022 midterm for Republicans not on Trump himself, but on Mitch McConnell. So, that is what we're seeing play out in the public is these allies of former President Donald Trump come out and call for a delay in the Senate leadership election that is scheduled right now to happen on Wednesday.
As of now it has not been delayed. And as of now Mitch McConnell is expected to become the minority leader for the Senate in this election. But still, noteworthy that these Republicans are coming out and publicly slamming the results of this election and placing blame on McConnell.
Take a look at what Marco Rubio, Florida senator, tweeted this week. He said, "The Senate GOP leadership vote next week should be postponed. First we need to make sure that those who want to lead us are genuinely committed to fighting for the priorities and values of the working Americans of every background who gave us big wins in states like Florida."
And also want to note, Boris and Amara, that there were two -- three other Republican senators who sent a letter urging members of the Republican conference to postpone their leadership election, saying that they need to have serious discussions about what went wrong in the 2022 midterms ahead of the 2024 presidential election. So really note worthy, this will be tomorrow, this week, the first time that Republican -- that Congress comes back since they've been gone campaigning for the 2022 midterms and Republicans are set to have their first in-person meeting on Tuesday. So it will be very interesting to see how that all plays out.
WALKER: And on the other side, we're talking about the House now, Kevin McCarthy, he faces a tougher bid for his speakership bid. You know, what is that path going to look like?
DIAZ: Amara, it's very interesting, you know, if you had spoken to a Republican member, specifically McCarthy, before Tuesday, they would have said that they thought there would be a huge margin of Republicans as a majority in the House and that's not looking like it's going to happen, which is why McCarthy will need every single vote at his conference if he wants to become speaker should the Republicans take the House. We haven't called that yet. To be clear it's expected though he's going to have a small margin which is why these dozens of members of the House Freedom Caucus are coming out and calling for priorities that they want for McCarthy for his vote and members being, of course, Marjorie Taylor Greene, Matt Gaetz, Chip Roy. They are being very clear that it's not going to be an easy goal for McCarthy to get the gavel. That he's going to have to make concessions to them.
SANCHEZ: Yes, imagining Marjorie Taylor Greene on the House oversight committee, that's not just a headache for Democrats, it might even be a headache for McCarthy as well. Daniella Diaz, reporting live from Capitol Hill, thank you so much.
Let's dig deeper now on this leadership conversation with CNN political analyst and Princeton University historian and professor, Julian Zelizer. Good Sunday morning to you, Julian. Always great to see you.
This is really fascinating because Tuesday did not go as expected for Republicans. And now these leaders that expected to be, you know, in the majority and having all this influence, they're facing a struggle to just lead their small advantage in the party. Kevin McCarthy is a great example. How do you see that playing out?
JULIAN ZELIZER, CNN POLITICAL ANALYST: Yes. There's nothing like election loss or a poor performance to shake up the stability of the leadership. And I think if Republicans gain control of the House, which is still very likely, he's now facing a very small majority and the new generation of Republicans. Congresswoman Greene, for example, are going to have a lot more leverage. And, I don't know, my guess is McCarthy will make all the concessions that they ask for -- that's what he's done thus far -- but it will show their command on Republican caucus that's going to move rightward.
SANCHEZ: I imagine you weren't surprised that Donald Trump was calling Republican allies in the Senate putting blame on Mitch McConnell for what happened on Tuesday night. Do you think that his path toward leadership is going to be difficult or do you think he's easily reestablished as leader?
ZELIZER: I think he will reestablish himself. Obviously, the election will shake up some Republican support for the former president. He was as much on the ballot as President Biden, which is the last thing the opposition party ever wants in a midterm.
That said, he's still very formidable, he still has a lot of support in the Republican Party, and when he's back front and center, which he might be very soon if he announces, I don't think it's going to be as easy as some think to suddenly remove him as the top Republican of the party.
And part of this leadership battle is fascinating because it's not just a battle about who should be the best leader moving forward after the failure of the midterms, but it's between the Trump Republicans and other very conservative Republicans, who should take the blame for what just happened. And that's playing out right in front of our eyes.
SANCHEZ: Yes. McConnell was warning about candidate quality for some time. It seems to have played out the way he described it would and now Trump is trying to blame him for what happened.
Julian, let's take a step back and put the news overnight in Nevada in the big picture. Democrats winning the Senate. If Republicans hold on and they keep that very narrow majority in the House, what does that mean for President Biden's agenda?
ZELIZER: It's going to be tough moving forward. Obviously, these midterms didn't go well for Republicans. Obviously, it was good for the Biden administration, especially Democratic Senate.
If you have a House Republican majority, even if it's very narrow, that will mean investigation, it will mean obstruction, and it will mean the possibilities of more legislation as we saw in the first two years are going to be very narrow. So, it's still very important for the Republicans and I think they're going to use that platform or be able to use that platform, if they win it, very effectively.
SANCHEZ: And, Julian, I wanted to point out a number of election deniers running for office in swing states some of them aiming to become top election officials in their states, they lost. Do you think that means that we'll start to see fewer candidates spouting these lies about the 2020 election, these conspiracy theories?
ZELIZER: Well, there's certainly a disincentive. This is not the kind of midterm the opposition party wants, and many will look at those candidates and say that was the reason this happened. Some will look at the former president and say he is the reason they happened.
That said, election denialism, this whole agenda around challenging the democratic process, still has a very strong hold. And I imagine we'll still see it playing out and it's not going to disappear as a result of losses like the one that happened last night.
SANCHEZ: It will be interesting to see how it plays out in the primaries where it's obvious Trump still has a hold of the Republican Party, but perhaps not so much in a general election. Julian Zelizer, always appreciate your expertise.
ZELIZER: Thanks for having me.
WALKER: A stunning scene at a Dallas air show yesterday. Two planes colliding in mid-air as spectators on the ground watch in horror. What officials are saying about the crash and the people who were on board.
Also, President Biden is now on his way to Bali, Indonesia, where he'll meet face to face with Chinese President Xi Jinping at the G20 summit. A look at the high stakes meeting and why President Biden believes he has the upper hand.
[06:23:35] SANCHEZ: There was a horrifying scene in the skies over Dallas yesterday when two vintage airplanes collided in mid-air.
WALKER: The accident happening during an air show sending flaming wreckage plummeting to the ground as spectators were watching. We do want to warn you the video may be disturbing to some viewers.
WALKER (voice-over): A Boeing B-17 Flying Fortress and a Bell P-63 Kingcobra collided and crashed at the Wings Over Dallas air show Saturday, according to the Federal Aviation Administration. In a press conference Saturday afternoon Hank Coates, president and CEO of the Commemorative Air Force, told reporters about the crews during the World War II demonstration.
HANK COATES, PRESIDENT AND CEO OF THE COMMEMORATIVE AIR FORCE: The B- 17 normally has a crew of four to five that was what was on the aircraft. And the P-63 is a single piloted fighter type aircraft. I can tell you that it was normally crude. I cannot release the number of people on the manifest or the names on the manifest until I'm released to do so by the NTSB.
WALKER: The Allied Pilots Association, the labor union representing American Airlines pilots has identified two pilot retirees and former APA members among those killed in the collision. The APA said former members Terry Barker and Len Root were among the crew members on the B-17 Flying Fortress. "Our hearts go out to their families, friends and colleagues past and present," their tweet said.
The NTSB is launching a go-team to investigate Saturday's mid-air collision, a tweet from the NTSB on Saturday evening said in part. No spectators or others on the ground were reported injured. The debris field from the collision includes the Dallas Executive Airport grounds, Highway 67 and a nearby strip mall.
SANCHEZ: It is worth noting that the FAA does require these stunts to be approved ahead of time, but one expert says that even as safety measures have been put in place over the years there's still tremendous risk when performing complex and dangerous moves. Listen.
(BEGIN VIDEO CLIP)
MARY SCHIAVO, CNN TRANSPORTATION ANALYST: When tragedies happen at air shows the FAA has to reevaluate whether this should be allowed. Because, remember, even though the regular federal aviation rules don't apply, the FAA does approve them, license aerobatic flights, license these dramatic maneuver events and air shows and permit they have to permit these air shows.
So, the FAA does over time has increased requirements and safety measures, but in the end, you're flying extremely complicated maneuvers, you're doing aerobatic flight, you're supposed to be licensed to do so. Or to do -- fly in formation you have to have special certificate, dynamic maneuvering, you know, rocking your wings dramatically, you know, from left to right, et cetera. That all has to be approved by the FAA.
(END VIDEO CLIP)
SANCHEZ: The air show was scheduled to run through today, but the remaining events have been canceled.
WALKER: All right. Up next, President Biden gets ready to sit down face to face with Chinese President Xi Jinping. We'll have the latest on what is at stake and how that conversation might go.
SANCHEZ: President Biden is meeting with the leaders of Japan and South Korea on the eve of his high stakes sit down with China's President Xi Jing ping. The two leaders are meeting on the sidelines of the G20 Summit in Bali, Indonesia. And it's going to be their first face-to-face meeting since President Biden took office.
AMARA WALKER, CNN ANCHOR (on camera): The sit down comes as tensions are quite high between the U.S. and China, the highest it's been in decades, actually. And for more on what we can expect, let's bring in CNN White House Correspondent M.J. Lee traveling with the president in Bali.
Hello to you, M.J. So, it seems like for President Biden, at least the first few days in Asia was all about laying the groundwork for this meeting with Xi Jinping. What can we expect?
M.J. LEE, CNN WHITE HOUSE CORRESPONDENT (on camera): Yes, I think that is a fair assessment. You know, Air Force One is in the air now. The President is headed from Cambodia to here Indonesia where he is, of course, going to be attending this very important G20 Summit. And there is so much on his agenda, it is going to be a busy few days for President Biden.
Obviously, there is going to be a ton of face time with various world leaders so that they can discuss everything from the war in Ukraine and the various economic challenges that that war has worsened to other important issues like climate change. And the U.S. is role in all of these issues. That is going to be something that the President takes this opportunity to try to make clear.
But there's no question that this bilateral meeting between President Biden and Xi Jinping, his counterpart in China, is going to be a highlight from this summit. We know that obviously, these two leaders have known each other for a number of years. Even going back to when President Biden was vice president, they've spent a fair amount of time together and have had phone calls and video meetings since President Biden came into office. But it is notable that this is going to be the first time that the two leaders meet face to face since President Biden became president.
And earlier today in Cambodia, the President spoke about how this meeting is going to be an opportunity for him to draw out his counterpart on what Beijing's red lines are. Take a listen.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: I know Xi Jinping. I spend more time with him than many other world leaders. I know him well. He knows me. There's no -- we have very little misunderstanding. We just got to figure out where the red lines are and what we're -- what are the most important things to each of us going into the next two years. And his circumstances change, to state the obvious, at home and so, we're going to have a -- I think -- I've always had straightforward discussion.
(END VIDEO CLIP)
LEE: And you know, what's interesting is that U.S. officials, in previewing this bilateral meeting, they've been pretty clear about expectations. They have said, there aren't necessarily sort of a set of deliverables that they're going for. There probably won't even be a joint statement of any sort after this meeting. But really, what US officials have said is that nothing beats a face-to-face meeting that President Biden can have with a foreign leader, and that he really does want to just come away from this meeting with a better understanding of where President Xi is and where Beijing is on a whole host of issues.
And obviously, I don't need to tell you that this comes at a really low point for us China relations, particularly worsened after House Speaker Nancy Pelosi has controversial visit to Taiwan. So, we'll see if this meeting ends up playing any role in sort of taking down the temperature, but no question that this is going to be a key moment for us China relations.
WALKER: Absolutely. M.J. Lee, thank you so much for that.
Let's talk more about this and get some deeper insight on the Biden-Xi meeting coming up on Monday. Joining us now is CNN political analyst and Washington Post Columnist Josh Rogin. Josh, good morning. Good to see you. Could you first set the stage for us because we've been talking about how tensions have been so high between the U.S. and China for many years now. And of course, you know especially during the last four years under the Trump presidency, we have seen Xi Jinping, or as many critics have called him, Emperor Xi, he's become much more emboldened and empowered, hasn't he?
JOSH ROGIN, CNN POLITICAL ANALYST: Well, that's exactly right. The context for this meeting is that Xi Jinping has just completed his 20th Communist Party Congress. And what they did was they coordinated him as essentially, dictator for life. And inside that process, he purged all of his rivals and elevated all of his cronies and assumed what we can basically call totalitarian power, OK. That means he's showing up in Bali stronger and more confident and more bold than ever before.
And we saw what happened in Russia when Vladimir Putin got totalitarian power. It didn't work out well, OK. He made a lot of bad decisions, became more aggressive. And that's the fear. We don't know what Xi Jinping is going to do. But what Biden is trying to do is he's trying to urge him not to go down the Putin route especially when it comes to Taiwan.
The problem, of course, is that because Xi Jinping is more powerful than he's ever been, and the United States is seen as less present in the region despite Biden's visit, I don't think there's anyone who would say that President Biden is going to be able to get in there and convince Xi Jinping to change anything or to slow down at all, or to change his red lines. We know what his red lines are. He wants China to take Taiwan. We know what our red lines are. We want him to not -- to not do it.
WALKER: Right. So, what do you think this conversation is going to sound like, especially when, you know, you have Xi Jinping walking in there, more powerful than ever as you say. We know that Biden is also not shy about mincing words. This is about understanding each other. Will they reach even -- I mean, we're not talking about agreements here. So, will they reach any kind of understanding or seeing each other side?
ROGIN: Right. No, I think it's good that they talk face-to-face. I think there's no doubt that they should hear it from each other's mouths exactly what their policies are. But no, there's not -- not only is there no agreement, there's no overlap at this point. The relationship is going down fast. So, not just on Taiwan on trade, on human rights, on technology, we're facing full-blown all-out competition with China.
And what President Xi and President Biden are going to try to do if they can is to put a floor under that fallout, to put guardrails around the competition so it doesn't speed up into a conflict that neither side wants. That's a worthy goal. But basically, what they're going to do is they're going to talk at each other, not with each other. And that's not useless. That's valuable, but don't expect any progress at all.
WALKER: You know, could you talk a little bit also, Josh, about your conversations with Taiwanese officials? I think that perspective is so important, because you wrote about this in a recent Washington Post opinion piece that Taiwan is really sounding the alarm of a potential war with China. China is an existential threat to Taiwan.
ROGIN: Well, that's right. The Taiwanese leaders who I spoke with when I was there recently said, look at Ukraine. Look what happened in Ukraine, OK. No one thought that Russia was going to invade, but then they did. And this is what happens when totalitarian, aggressive dictatorships feel emboldened when they feel like the world is not going to come to the aid of the small democracy near them. And that's what might happen in Taiwan.
So, they're calling on the West, especially United States to look clear right at this guy, Xi Jinping, is the totalitarian dictator that he is, and then respond accordingly by giving them more help before the attack, before the thing devolves into a war. We should have learned from Ukraine that our deterrence is not enough. We should have learned from Ukraine that the only thing that totalitarian aggressive dictators respond to is strengthen deterrence and when you make clear that you're not going to tolerate their aggression.
And we're not there with China yet. That's what the Taiwanese believe. And I tend to agree with them. So, to the extent that the Biden administration can have this frank conversation with the Chinese leadership, that's all to the good. We have to talk. We can't be in a world where the two superpowers can't deal with each other. At the same time, we have to be clear-eyed and realistic about the China that we're dealing with, and the Xi Jinping that we're dealing with. And it's not the same as it was when Vice President Biden met Vice President Xi ten years ago.
ROGIN: They're stronger, were weaker, and we -- that's the problem that we have to solve.
WALKER: That's the reality. And context is so important. And hence you can understand why many officials have described this meeting as high stakes but low expectations.
WALKER: Josh Rogin, I appreciate your time and your insight into this. Thank you so much.
SANCHEZ: So, as the Fed fights inflation, credit card rates are hitting a record high. Next, we're going to talk to an expert about how to minimize your debt and how to keep more money in your wallet. We'll be right back.
SANCHEZ: With the prices of goods and services more expensive than they were a year ago because of high inflation, many Americans are becoming increasingly reliant on credit cards to make purchases. But according to bankrate.com, as the Fed has increased interest rates, the average credit card APR climbed over 19 percent. That was just this week. It is the highest rates since Bankrate dot coms database began in 1985. The last time it touched 19 percent, which was an all- time high at the time, was July 1991.
Joining us now to discuss is Ted Rossman. He's a senior industry analyst with bankrate.com and creditcards.com. Ted, we appreciate you joining us bright and early on a Sunday a record-setting average APR. How do consumers manage that? What's your advice?
[06:45:19] TED ROSSMAN, SENIOR INDUSTRY ANALYST, BANKRATE.COM AND CREDITCARDS.COM: My top tip would be to get a zero percent balance transfer credit card. So, this allows you to move your existing high- cost debt over to a new card with a zero percent promotional rate lasting as long as 21 months. Examples include the Wells Fargo Reflect the BankAmericard and the Citi Diamond Preferred
SANCHEZ: So, essentially, find a credit card that has a zero percent APR for a promotion, and then just move the debt that you have perhaps at a high APR card there. Is that the best way to summarize it?
ROSSMAN: Yes. That can save you a lot of money in interest. There's typically a three to five percent transfer fee upfront, but I still think it can be well worth it. The best way to use one of these cards is to avoid making any new purchases. They may try to tempt you with zero percent APR on new purchases as well. I say don't do that. It's just hard to hit a moving target. Move your debt over, divide what you owe by the number of months in your zero percent term, and try to stick to that level payment plan.
SANCHEZ: That sounds like good advice right there. So, the Fed obviously raising interest rates to fight inflation, but that's pushing up borrowing costs. How well do you think the Feds efforts have worked to minimize inflation?
ROSSMAN: It's probably too early to say. I know that it's frustrating for people to hear that we're about eight months into this rate hiking cycle. But it often takes nine months or more for these rate hikes to filter through. We have to remember too, the Fed didn't really get serious with these jumbo 75 basis point hikes until June. So, it's going to be some time. We saw some evidence last week in the latest inflation report that inflation is coming down slightly, but we definitely need to see more progress in the months to come.
It seems that the Fed may start to dial back the pace of these increases and give them more time to filter through the economy. But I think we could be stuck with high credit card rates for the foreseeable future.
SANCHEZ: And that's tough given that we're entering the holiday shopping season. We're a few weeks out from Thanksgiving and Black Friday. A lot of people thinking, what are they going to get their loved ones? What do you think this high APR average is going to do to impact retail sales?
ROSSMAN: Credit card rates are very high. And I think honestly, this should be a deterrent to piling on more debt. I think you really need to make this payoff a priority. Whether it's a zero percent balance transfer card or whether it's a low rate, personal loan, or maybe nonprofit credit counseling agencies like Money Management International can really help you get out of debt.
Don't make it worse during the holidays. If you have credit card debt, pay that down, set a good budget, maybe use cash or debit for your holiday purchases. Those store credit cards have especially high- interest rates. Some of them are at or even slightly over 30 percent. SANCHEZ: So, I actually wanted to ask you about that because often it's really tempting. You know, if you are shopping in person or even online, you go to checkout. And then there's this opportunity where you get a store credit card you could save sometimes 20 percent on your purchase and seems like a good deal, but you're saying not so much.
ROSSMAN: I think there's a narrow path for store credit cards to work for you. It has to start with paying in full and avoiding interest. That should be a priority on any card, but especially on store cards because of the high rates. The other thing though is that a lot of store cards have lesser rewards and lesser signup bonuses. So, if you can pay in full, you might be better off with a more general-purpose travel or cashback card.
One time that store cards can work for you is if you pay in full and you're loyal to the store. So, you're going to shop there and you're going to routinely get five percent cashback on your purchases, let's say, or if you get a nice discount off a really big initial purchase that you can pay off. A coworker recently saved $1,000 on new appliances using this tactic but you have to pay in full and avoid the high rates.
SANCHEZ: Great to get that advice especially as we gear up for that holiday shopping season. Ted Rossman, thanks so much for joining us.
ROSSMAN: My pleasure. Thank you.
SANCHEZ: Of course.
WALKER: I don't even want to think about holiday shopping. Too early for me.
All right, well, up next, the final weeks of the college football season are now upon us. The top six teams are battling for playoff spots, but one of them may have seen those dreams shattered. Coy Wire tells us which one next.
SANCHEZ: The top four teams in college football all got big wins yesterday and that includes fourth rank TCU who've surprised a lot of people with a perfect start earning them a spot in the big 12 title game.
WALKER: Coy Wire has more in this morning's Bleacher Report. Good morning, Coy!
COY WIRE, CNN SPORTS CORRESPONDENT (on camera): Good morning! Great to see you, Amara and Boris. TCU's run to its first ever College Football Playoff has been met with a lot of skepticism. Even though they were unbeaten, they were still seven-and-a-half-point underdogs heading into last night's game against a three-loss Texas team, so TCU is lit. And you can bet that new coach Sonny Dykes use that as fuel to his TCU
fire. The big 12-second leading rusher. Kendre Miller breaks the 1000- yard mark and this one. Here, it's 75-yard touchdown on this one. Horned Frogs take a 10-0 lead. Then, quarterback Max Duggan, who lost his starting job and training camp with injury, continues to prove doubters wrong. The big 12 passing leader hitting Quentin Johnston there.
TCU winning 17-10, a perfect 10 and 0 for the first time since 2010, earning a spot in the big 12 title game. The Pac-12's best chance at a playoff team, number six Oregon facing 25. Washington and UDub ties the game with just over three minutes to go, Taj Davis for a 62-yard score. Then with just under 90 seconds to go, Oregon fourth in one on their own 34 and they go for it. But Noah Whittington slips turning it over to the Huskies. Washington's Peyton Henry hits the eventual game- winner. Huskies went 37-34. The Ducks now out of playoff contention.
And let's show you a play of the day, maybe this season. Notre Dame's Braden Lenzy reaching around a navy defender catching it on his back for the score. Great defense, just a greater catch. Lenzy gets a touchdown and a hug. The Irish win 35-32.
Finally, later this morning, first time ever, an NFL regular season game in Germany. Tom Brady will strap on his lederhosen to face the Seahawks in Munich at 9:30 Eastern. NFL says three million people want it tickets, only 67,000 will get up to watch that game.
SANCHEZ: All right, Tom Brady and lederhosen.
WALKER: I know there's a lot of fans there.
WIRE: That's a good -- great image. Sorry, you can see that, Boris. Sorry.
SANCHEZ: Great, yes. Coy Wire, great to see you as always. Thanks.
Hey, it was a major win for Democrats overnight as they kept control of the U.S. Senate, but the House -- the House is still up for grabs. We have a breakdown on the latest numbers straight ahead.