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Connect the World

Trump Imposes Tariffs Over Iran Protest Crackdown; Iranians Protest in the Face of Harsh Government Crackdown; Minnesota, Illinois Sue Trump Administration Over I.C.E. Operations; Marine Le Pen in Court to Appeal Embezzlement Conviction; Backlash Grows Over DOJ Investigation into Fed's Powell. Aired 9-10a ET

Aired January 13, 2026 - 09:00   ET

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

[09:00:00]

(COMMERCIAL BREAK)

ERICA HILL, CNN HOST, CONNECT THE WORLD: A live picture for you there of the White House a Trump Administration monitoring a violent crackdown in

Iran as it weighs its next move. It is 09:00 a.m. in Washington, 09:00 a.m. here in New York as well. I'm Erica Hill in for Becky Anderson.

This is "Connect the World". Also, ahead this hour, two U.S. states suing the Trump Administration over what they call aggressive immigration

enforcement. We are live in Minneapolis. Plus, the bipartisan concern U.S. lawmakers on both sides of the aisle voicing skepticism over the criminal

investigation into U.S. Fed Chair Jerome Powell.

The stock market in New York opens just about 30 minutes from now. Of course, some earlier losses in the wake of that news on Jerome Powell

actually led to record closes for the DOW and the S&P as you can see this morning. Mixed on those futures, but we'll continue to monitor again just

about 30 minutes away now from the opening bell in New York.

We begin though with another night of protests in Iran. The U.S. President also issuing a new tariff threat. These protesters, this is out of

Southwestern Iran defying that harsh government crackdown. Two residents of Tehran meantime telling CNN, they've actually seen fewer demonstrations on

the streets of the capital compared to previous nights.

Those residents are among the Iranian who've been able to dial outside the country today. The internet blackout, though it's important to remember, is

still in effect. It, of course, began last week here in the U.S., President Trump says he is immediately imposing a 25 percent tariff on any country

doing business with Iran.

It is not clear yet how those tariffs would be implemented. What we do know is the president is expected to meet with his national security team today

to discuss potential military options against Iran. There is also, though, talk of negotiation. The White House Press Secretary discussed both

possibilities on Monday.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: I think one thing President Trump is very good at is always keeping all of his options on the table.

And air strikes would be one of the many, many options that are on the table for the Commander in Chief, diplomacy is always the first option for

the president.

He's told all of you last night that what you're hearing publicly from the Iranian regime is quite differently from the messages, the administration

is receiving privately. And I think the president has an interest in exploring those messages. However, with that said, the president has shown

he's unafraid to use military options if and when he deems necessary. And nobody knows that better than Iran.

(END VIDEO CLIP)

HILL: Paula Hancocks is following the developments for us from Abu Dhabi. So, Paula, when we look at this, there are both. There's both what we're

hearing from Donald Trump, how that's being received inside the region. But there's also the real question of what's actually happening inside Iran.

It is so challenging to get information out of the country at this point, Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: It is Erica. And any information we're getting out is very rarely in real time. Given the fact there is this near

total internet blackout, it is very difficult to get an overall understanding of just how serious this crackdown has been.

Now, we have figures from human rights groups saying that over 500. Others saying hundreds of protesters have been killed. We also have those casting

doubt on that, saying that they fear the actual death toll and those injured could be far higher. It is extremely difficult to be able to give a

clear picture of what is happening.

We do, though, have footage from Monday night showing that protesters are still coming out onto the streets, even knowing that this brutal crackdown

has been in place since the internet blackout started late last Thursday that many protesters have been killed. People are still coming out on the

streets and risking their lives to show their anger, their frustration.

And we saw some images as well this Tuesday morning of a burned-out bank showing what had happened after one of those protests, a visual reminder of

the anger of some of the protesters. We are hearing a more confident note from the regime itself. We've heard the foreign minister saying the

situation is under control.

We saw significant pro regime rallies on Monday, reminding us that they do still have support within the country. They are able to call up on

supporters when they need to. We've also heard the Iranian regime responding to what the U.S. President has been saying.

[09:05:00]

They have said that they are willing to talk this, coming from the foreign minister, but also saying that, if necessary, that they are, quote, ready

for war as well, if the U.S. decides to attack. So, what we know on the ground at this point is, throughout this Tuesday, there were some residents

that were able to call out of Tehran.

We have been hearing from some of our reporters here at CNN saying that they believe the protests on Monday night were quieter. They still

happened, but they weren't as significant as previous nights. Again, this is just a very small pocket that we can report on. Whether that is

representative of the whole of Tehran or elsewhere in Iran.

It is very difficult to say. But as of this point, the protests are continuing, and unfortunately appears the brutal crackdown is as well,

Erica.

HILL: Yeah, absolutely. Paula, really appreciate it. Thank you. Also, with us this hour White House Correspondent, Alayna Treene. Alayna, you know, as

we just heard from Paula, Iran's Foreign Minister saying they're willing to talk, but also ready for war, this meeting with the national security team

is scheduled for the president today.

Is there a sense of what the actual options are that the U.S. may be weighing?

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Yeah, there's a few. And look, the president has already been briefed a number of times on some of the

options, including potential military strikes. Most likely air strikes in Iran would be probably the most aggressive actions that the president would

take.

But they're also laying out a number of diplomatic potential pathways to try and resolve this. We're told from you know, my conversations with

people in the administration. And also, other actions that are not, you know, relating to strikes, for example, things like cyber-attacks or trying

to impose more sanctions on Iran.

So, this is all very much unclear at this point. What is true is that the president has very much moved closer to this idea of wanting to intervene.

I'd remind you, Erica, that he has now been threatening Iran about, you know, potential U.S. action, potential U.S. military action.

Since January 2nd, when these protests began to really pick up steam, of course, that has changed in recent days, with now the death hole reaching,

you know, higher than 600 people. And so, because of that, the president, I'm told, has been wanting to make good on his threats.

HILL: Yeah.

TREENE: And to try to really, you know, urge more pressure here on Iran. But the question is, what could that be? And so this meeting is going to be

very important to explore for the president, what options he has and what really his senior national security officials believe could be the right

pathway, while some have believed that, you know, there were calls from the Iranian people this weekend, including the Iranian Foreign Minister, was

reaching out to the President's Foreign Envoy, Steve Witkoff, with some conciliatory messages.

We have reported that has been a sign to some officials that perhaps Iran is willing to make a deal, or willing, you know, to engage in substantive

diplomacy at this point. Others, however, believe that this could simply be a delay tactic by the Iranian government to try and fend off a potential

U.S. attack.

And so, all of that is going to be something that the president has to weigh. And just so you know, some of the officials who are going to be in

this meeting include the Secretary of State, Marco Rubio, someone who has been, of course, crucial in all of this. He had spoken with the Iranian

government on Saturday, we've reported.

But also, Defense Secretary Pete Hegseth, and the Chairman of the Joint Chiefs of Staff, Dan Caine. That also shows you that military options are

still very much on the table here. And I do want to point you as well to what we heard from the White House Press Secretary Karoline Leavitt

yesterday.

She essentially said, when asked about the potential of air strikes, she said that air strikes are just, quote, one of the many, many options that

are available, but again, that diplomacy is preferable. And so, we'll have to see really where the president is after this meeting. We also going to

have an opportunity, hopefully, to ask him some questions.

He'll be leaving the White House here soon, in about an hour or so, to head off to Detroit. That will be a good moment to try and gage where his head

is on this and whether or not he believes that diplomacy is actually a viable solution here.

HILL: All right, we'll be watching for those moments as he departs as well. Alayna, appreciate it. Thank you. Also, with me CNN's Senior Political

Reporter Stephen Collinson, who's joining me live from Washington, when we look at the way that this is all potentially or the way this could

potentially play out.

It's important to note, as you did in one of your recent columns, Iran is not Venezuela, and there are certainly some lessons to be learned in the

way that the president, the administration, went about removing Maduro and what has been left. What is your takeaway in this moment when we look at

these two particular situations, which are, in fact, quite different?

STEPHEN COLLINSON, CNN POLITICS SENIOR REPORTER: I think the first one, as you heard from what Alayna was saying, was this Iran situation is far more

complex on the face of it.

[09:10:00]

It doesn't seem like the quick, sharp win that the president declared in Venezuela with the ousting of Maduro is necessarily going to be available

to him in Iran. I think the first question to ask is whether U.S. action, military action, attacks, will help the protesters and perhaps be a

decisive push to nudge the regime over the edge.

Or will they hurt? Will it cause a backlash against them? How would Iran respond? Could the U.S. simply end up getting rid of the clerical regime in

Tehran and creating a new situation whereby some kind of domestic IGRC, strong man takes over. So, I think there are a lot of things that the

administration has to weigh here.

And of course, the president has repeatedly established a red line. He said he would act if Iran shot against the protesters. So, the bias here, from

his point of view, I think would be to take some kind of action. But there are many questions and caveats about whether the U.S. could be effective,

and what kind of circumstances it might unleash if it went back to hitting Iran militarily.

Not least, of course, he also has to weigh the domestic factors. There's a great deal of concern about his actions in Venezuela. There's a huge

controversy about Trump's plan to create ownership of Greenland. So, all of this, I think, is going to be part of the White House deliberations.

HILL: It's also so interesting because a lot of the criticism following the capture of Maduro and his wife was over, whether or not there was actually

a plan for the day after. And there are questions about what the ultimate goal would be in Iran? What would that day after be?

To your point, could it potentially embolden the existing regime? I mean, Trump has said repeatedly, now, this is about the oil really in Venezuela.

It is not a democracy first operation, if that is potentially the goal in Iran democracy that is a massive undertaking.

COLLINSON: Yes, I think there is a tantalizing goal here for the administration. The possibility that it could rid the middle east of the

Iranian Revolutionary regime, which has been a huge factor in supporting terrorism, in opposing Israel and U.S. goals in the Middle East for 45

years.

That would be something, first of all, that would appeal to the administration, geopolitically, but also to Trump himself. Could he be the

president who finally solves the Iran question for the United States. We know that he's looking for legacy, historical achievements, that may well

appeal to his sense of the dramatic, and this idea that he's wielding unaccountable and vast American power across the globe.

Yet at the same time, is there that option that the United States has to create a quick, spectacular military clap and not get dragged into all

sorts of other consequences that might flow from Iran. We know that. You know, the whole U.S. showdown with Iran started in the early 1950s with the

U.S. coup that was motivated by oil somewhat similar to Trump's actions in Venezuela in recent weeks.

U.S. plans made in Washington that seem very logical on the face of it, often end up leading down difficult, punishing ways for presidents in the

Middle East, as we saw in the early years of this century as well. So, I think there's a lot for the administration to be concerned about, even in

its current belligerent and bullish mood.

HILL: Yeah, there are certainly lessons in history, as we all know, and we know the old saying about being doomed to repeat itself. Stephen,

appreciate it as always. Thank you. Just ahead here U.S. Senators are expected to receive new details in just a matter of moments on the

operation that ousted Nicolas Maduro.

We'll take you live to Capitol Hill. Plus, major push back from two states against Trump's immigration crackdown, as they now turn to the courts to

stop what they call aggression and terror on their streets.

(COMMERCIAL BREAK)

[09:15:00]

HILL: Coming up this hour in Washington, D.C., the Senate Armed Services Committee is due to receive a closed-door briefing on operation absolute

resolve. The U.S. military operation that ousted Venezuelan Leader, Nicolas Maduro. CNN's Lauren Fox joining us now, live from Capitol Hill.

Lauren, it's good to see you this morning. So, what do we expect the senators will learn, and how much of that will they reveal to us?

LAUREN FOX, CNN CONGRESSIONAL CORRESPONDENT: Yeah, that's always the ultimate question, right Erica, when these lawmakers go into these

briefings. Look, this is really going to be an opportunity for Republicans and Democrats to get answers, not just about the operation as it unfolded

and the basis for going into Venezuela, but also an opportunity to gage what the contingencies are for the future.

As President Donald Trump has made clear, he expects that the U.S. could be involved in Venezuela for years to come, while lawmakers on both sides of

the aisle want to understand the details of exactly what that looks like. And it's really interesting, because the briefers today are not political.

These are people who are uniformed officers, who have a lot of technical experience in terms of helping lawmakers understand not just what unfolded

in Venezuela a couple weeks ago, but also where things are going to go in the country. And some of this is really unpredictable, right?

Because it's still not clear what the power structures in that country look like. There are obviously interests for China in the country, for Cuba in

the country, for Iran in the country. How do all of those things play out in the months, weeks and years ahead? I think lawmakers are likely going to

be looking for some of that information.

But this may not be sort of the political fireworks behind the scenes that you sometimes see when people like Hegseth or Rubio come and brief the

hill. That is a very different dynamic for the senators than when they are talking to uniformed officers with some of the tactical and technical

expertise that they're expecting today, Erica.

HILL: All right, Lauren, really appreciate it. Well Former U.S. President Bill Clinton is scheduled to testify on Capitol Hill next hour. This is as

part of the ongoing investigation into convicted sex offender Jeffrey Epstein. Clinton was summoned to show up today. His wife, Former Secretary

of State, Hillary Clinton, has been issued summons for Wednesday.

These are separate depositions with the House Oversight Committee. Neither has responded to the request. The panel's chair, Republican James Comer has

threatened to begin contempt proceedings if the Clintons do not comply with the subpoenas. Two U.S. states, Minnesota and Illinois, are now suing the

Trump Administration over its immigration crackdown, saying it is terrorizing their communities and also that the moves violate the

constitution.

Minnesota filing sues after the Department of Homeland Security surged hundreds more I.C.E. agents to Minneapolis on Monday. State and local

officials accuse the government of politically targeting the Twin Cities, and of causing chaos.

(BEGIN VIDEO CLIP)

JACOB FREY, MINNEAPOLIS MAYOR: What we are seeing right now is not normal immigration enforcement. We are not asking I.C.E. not to do I.C.E. things.

We are asking this federal government to stop the unconstitutional conduct that is invading our streets each and every day.

(END VIDEO CLIP)

HILL: Now, the frustration comes, of course, after an I.C.E. agent shot and killed Minneapolis, mother of three, Renee Good last week. Just moments

ago, CNN spoke with Minnesota's Attorney General, Keith Ellison. And he explained what's happening on the ground in his state and why officials say

it needs to stop. Take a listen.

(BEGIN VIDEO CLIP)

KEITH ELLISON, MINNESOTA ATTORNEY GENERAL: Immigration is primarily federal, but even the federal government has guard rails that it has to

abide by.

[09:20:00]

And we're not saying that though, that I.C.E. cannot have a presence in Minnesota, we're saying the dramatic escalation, which is unwarranted and

politically motivated, is harming our state and our cities. We're saying that because of this dramatic escalation, and we're talking about over 1000

and more to come they say, that we're in a situation where it's depressing our economy and our local markets.

It's depressing school attendance. It's putting dramatic pressure on our local law enforcement, who have to respond to 911 calls and protesters and

all this. The escalation is what this lawsuit is about. The escalation is what has brought about, I think the death of Nicole Good.

And it's about what is driving just the uncountable number of cases of racial profiling that are flooding into everybody's offices constantly.

This is what this is about, not about I.C.E. being in Minnesota. We know I.C.E. has been in Minnesota for a long time, and we didn't sue before.

We're suing now because of this escalation.

(END VIDEO CLIP)

HILL: CNN's Ryan Young is in Minneapolis for us this hour. So, Ryan, what happens next at this point and has this lawsuit seemed to have any sort of

an impact on the streets? And what you're seeing?

RYAN YOUNG, CNN SENIOR U.S. NATIONAL CORRESPONDENT: That's a great question. The back side of this look, there was a great interview, and

there's been a lot of questions about what this city and what the state can do to fight back, Erica. And I think what you hear over and over,

especially from protesters, is they want to see some sort of governmental movement.

They're asking for the leaders to fight against the Trump Administration because of what happened here. We're standing at the site where Renee Good

was killed, and so this is the memorial that continues to grow, and you see it here. And the question from a lot of people who live here is, what can

be done?

Because they feel like their neighborhoods, their city, is being impacted. Just to give you an idea, there are 600 officers. 100 officers in

Minneapolis, 600 in St. Paul. And the citizens here say now they're actually outnumbered. When you think about the fact that so many of these

officers have surging from the federal government, over 1000, another 1000 being sent in.

So, the question is, if you live in this community, you're upset by what you're seeing. You're upset by what happened here. What can the government

do to help you? And that's what we're starting to see with this lawsuit. We believe today maybe there could be some action in court, but there's been

no court docket sort of given to us so far or published with a time where we can hear these arguments play out in a court so far.

HILL: Which is an important point. We'll continue to check in with you. Ryan, appreciate it. In the United Kingdom, the BBC is now seeking to have

Trump's $10 billion lawsuit dismissed. In a filing late Monday, Britain's publicly owned broadcaster argued the court in Florida lacked jurisdiction

in the case because the BBC doesn't broadcast in Florida.

And also noted the U.S. President could not prove damages because he was reelected after it aired. Trump says the broadcaster defamed him by

splicing together parts of a speech that made it appear he had directed supporters to storm the U.S. capital. The BBC has apologized for the

editing, but said he would defend the case.

Let's get you up to speed on some of the other stories on our radar right now. In Ukraine, at least four people are dead, six injured after a postal

service building in Kharkiv was struck by Russian attacks overnight. Meantime, Kyiv is once again without power amidst below freezing

temperatures following another Russian missile and drone assault earlier.

The U.S. Supreme Court will hear two cases today on state bans for transgender athletes in school sports at issue here whether restricting

teams by sex at birth violates the constitution or federal civil rights law. Protesters are expected outside the court. French far right leader

Marine Le Pen is in court today for a crucial trial that will determine whether she can run for president in 2027.

Le Pen was banned from holding elected office for five years after a march ruling found her guilty of misusing European Parliament funds. Ahead here

on "Connect the World", Global Central Bank Chiefs, U.S. Republican lawmakers, even a member of President Trump's own cabinet.

Why they are all speaking out over this criminal investigation into U.S. Fed Chief Jerome Powell. Plus, the high cost of pretty much everything is

actually getting any better. The latest U.S. inflation report is now out, that's ahead.

(COMMERCIAL BREAK)

[09:25:00]

HILL: Welcome back. I'm Erica Hill, joining you from New York. You're watching "Connect the World". These are headlines. U.S. President Donald

Trump says he will impose a 25 percent tariff on countries that do business with Iran. It is important to note no real clarity on how those tariffs

will be implemented.

That announcement follows days of anti-government protests in Iran and a harsh government crackdown. One Rights group says it has now left more than

500 people dead. Happening this hour on Capitol Hill, the U.S. Senate Armed Services Committee is set to receive a closed-door briefing on operation

absolute resolve.

That's the U.S. military operation that ousted a Venezuelan President, Nicolas Maduro. Also, in Washington today, Former U.S. President, Bill

Clinton is facing a high stakes deadline next hour, to testify before the House Oversight Committee on the Jeffrey Epstein investigation.

Hillary Clinton is scheduled to be deposed tomorrow, neither has confirmed their appearance. The Republican LED panel has warned the Clintons, if they

do not show up, they will face a vote for contemporary Congress. Minnesota is suing the Trump Administration over its immigration crackdown, saying it

is terrorizing communities and that the moves also violate the constitution.

The suit itself comes after DHS surged hundreds of additional I.C.E. agents to the Twin Cities on Monday. Protesters increasingly angry following an

I.C.E. agent fatal shooting of a Minneapolis woman last week. Well, the backlash continues to grow over the U.S. Justice Department's criminal

investigation of Fed Chief Jerome Powell.

Even a member of Donald Trump's own cabinet is said to be unhappy about the probe. A source telling CNN, U.S. Treasury Secretary Scott Bessent is

concerned, and he's not alone. Central Bankers around the world expressing their support for the Head of the U.S. Central Bank.

While on Capitol Hill, there is bipartisan criticism of this investigation, which centers on Powell's June testimony before Congress about the Federal

Reserve's 2.5-billion-dollar renovation of its headquarters in Washington. Take a listen.

(BEGIN VIDEO CLIP)

SEN. JOHN KENNEDY (R-LA): I know Jerome Powell very well. I will be stunned. I will be shocked if he has done anything wrong. I understand that

some folks have gone on television and have accused the chairman of perjury. This is America. You can say what you think, but a perjury

allegation, particularly to the United States Congress, is a serious allegation.

It's serious as for heart attacks and a stroke. And if you make an allegation like that, by God, you better be prepared to put it to back it

up.

(END VIDEO CLIP)

Joe Brusuelas, the Chief Economist at RSM, and he joins me this morning from Los Angeles. Joe, it's good to have you here. It's been fascinating to

watch some of the reaction here to this investigation. "The Wall Street Journal's" editorial board calling it law, fair for dummies.

We heard the threats from GOP Senators to withhold their votes for future nominees right for the role of Fed Chair. You're a member of the journal's

forecasting panel. I'm curious, how would you characterize the impact at this point of this. DOJ probe?

JOE BRUSUELAS, CHIEF ECONOMIST AT RSM: Well, so far, it's been minimal across financial markets. We said we haven't really seen a concomitant rise

in interest rates, but that's because the market suss this out on Sunday night when Senator Thom Tillis, Republican from North Carolina, said he

would not entertain any nominee in the Senate Banking Committee.

[09:30:00]

For those of you not in the United States, there's 24 members on the Senate bank committee, 13 Republican, 11 Democrat, just one defection means

whomever the president would nominate wouldn't make it out of committee. Thus, Jerome Powell would remain the Fed or Reserve Chairman until that

matter is resolved.

That's why we haven't seen it now. What we've seen over the past couple of weeks is a move to constrain credit, whether you want to cap interest rate

on credit cards or you want to sell the independents of the central bank, all that leads to a scarcity of credit and rising rates. And that's not

good for the economy households or American business.

HILL: Does it also, is there concern that this kind of move by the administration could even influence the fed in an effort to avoid any

semblance of there being political influence?

BRUSUELAS: Well, that's right, if central bankers perceive that they're being thought of as lackeys of the administration, you're likely to get a

backlash on the committee, right? I mean, it's you. They are human at one point. Although it's really important to say these people are not

political, they really want to act in the best interest of the economy.

And in fact, they understand, if it's observed by markets, that they're cutting interest rates in an excessive way that will create a backlash in

interest or long-term interest rates will rise and the economy will slow.

HILL: Yeah, and that's actually what we heard, you know, part of that is, of course, what we heard in the unprecedented, really, in the video

statement that was released by Jerome Powell, talking about decisions are made based on the data, right, and based on what they see, not based on

politics.

Globally, right as you noted, the fact that this came out Sunday night, when we look at the markets, right, there was a dip earlier. But then we

saw record closes for the DOW and the S&P on Monday, markets just opening here in New York. Of course, we heard the bell moments ago.

Globally though, how does this move just the probe itself? Is it having an impact on the U.S. is standing?

BRUSUELAS: You know, I think that there's some risks there. When one thinks about political authorities moving against Central Bank or central bankers,

the pantheon of those countries, are Russia, Argentina, Venezuela, Turkey, Zimbabwe, not exactly the Hall of Fame when it comes to price stability or

maximum sustainable employment.

And that's why you saw that unique and even historic letter put out by global central banking community. Because at the end of the day, they all

matter, but the fed matters just a little bit more.

HILL: Yeah, it's also fascinating. Promise is my last Powell fed question for you before we move on to other things. But it's fascinating too, that

so of course, Jerome Powell's role, or pardon me, his term as chair, he's up in May, but his term on the Board of Governors actually extends into

2028.

There was a lot of thinking that, you know, once he's done in the current role, that he would likely step down. Now it seems that the thinking has

shifted and that he will stay on over concerns about the independence of the Federal Reserve. Do you agree that this likely would push him to stay?

BRUSUELAS: Yeah, I do. Actually, I do think Jay is going to stay through 2028 and there's precedent for this in 1949 Marriner Eccles, the then

Chairman of the Federal Reserve remained on of the board after he exited the chair role, because he was worried about then U.S. President Harry

Truman, compromising the independence of the central bank.

HILL: All right. Well, as we watch all of that play out, I did want to get your take too, so we got the latest consumer price numbers. Of course, just

a short time, about an hour ago, they were released. So, rising 2.7 percent that's slightly higher than what was anticipated in terms of inflation.

And this really speaks to I think what we're seeing is the main concern for most Americans, which is affordability and the cost of goods. Is it your

sense that this number will have an impact?

BRUSUELAS: Well, when you dig into the data, what you see is that the price of services, that's where Americans live, is up 0.3 percent on the month

and 3.3 percent for the year 2025. You dig a little bit deeper, you can see where the pain point is fueling utilities advanced 0.8 percent on the month

and is up 6.7 percent for the year.

When you talk to Americans, not policy makers, when you talk about inflation to them, they talk about food, fuel, utilities, education and

health care, that's their market basket, right? So, there is a real sense that there's an affordability challenge here for most American households,

and that was on display in the report.

Now I want to caution everybody, don't overact to this particular report. We're still working through the distortions introduced by the government

shutdown and some methodological quirks for the Bureau of Labor Statistics in the way they're estimating the cost of housing.

[09:35:00]

We won't really get a clean report get this until April or May of this year.

HILL: So, you read my mind on that next one, because I was going to ask you just how much the government shut down, right? And the issues with that

data over that time period are impacting this. So, if we're looking out to the spring, be interesting to see what happens at that point.

Joe. Really appreciate your expertise, your insight. Thank you.

BRUSUELAS: Thank you.

HILL: Well, the price of gold surpassing $4,600 per ounce for the first time on Monday. And as prices rise, so do the number of treasure seekers in

Australia. Polo Sandoval, met some of the prospectors who are now part of the new gold rush.

(BEGIN VIDEOTAPE)

POLO SANDOVAL, CNN CORRESPONDENT (voice-over): The lure of gold is drawing treasure hunters to Australia's Victoria state, an area known as the Golden

Triangle, where, historically, some of the world's biggest gold nuggets have been discovered. But there was no eureka moment for this gold seeker.

KELLY SMITH, GOLD HUNTER: Ah, there it is. Shotgun pellet.

SANDOVAL (voice-over): But it's not quite striking out, according to some hobbyist slash prospectors, if the quest is part of the reward.

SMITH: I like to walk through the bush, seeing the wildlife, and if I'm lucky, finding a little bit of gold.

SANDOVAL (voice-over): It may not be the gold rush of the mid-19th century, where hundreds of thousands of people flock to California trying to find

their fortunes. But demand for recreational mining permits in Victoria is hitting an all-time high. There are more than 100,000 active permits, which

allow people to search for gold using only hand tools and keep anything they find.

It's a chance to potentially hit pay dirt after the price of gold search last year to over $4,500 a troy ounce.

DAMIAN DUKE, GOLD HUNTER: Seeing what nuggets, they're finding out there and what they're actually getting for them is definitely a big boost,

because that can help us pay off a lot of bills, take kids out and stuff like that. So, it's a big kicker for me.

SANDOVAL (voice-over): Tony Mills, a gold hunting tour guide, says he's one of the lucky ones and has found some pretty sizable stones.

TONY MILLS, GOLD HUNTING TOUR GUIDE: The best one was the 80-ounce nugget. Yeah, and I found a 70, and I found a lot of 20 ones, and yeah, I found a

lot of decent nuggets, not recently, other than this, 3.5 ounce two months ago.

SANDOVAL (voice-over): And though most of the people dream of hitting the mother lode. Others are happy to just find a little something in the dirt.

A guide estimated this pebble of gold to be worth about $27. A jackpot for those that prize the experience,

UNIDENTIFIED FEMALE: I feel very good, very happy. My heart is singing a nice tune.

SANDOVAL (voice-over): Polo Sandoval, CNN.

(END VIDEOTAPE)

HILL: Still to come here, a dramatic U-turn from American Golf Star Brooks Koepka from the PGA Tour to Liv Golf and back again. But oh, are there some

expensive consequences? More on that, next.

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[09:40:00]

HILL: After four years away, American Golf Star Brooks Koepka is set to return to the PGA Tour later this month. Koepka is the first player to be

invited back to the tour after defecting to the Liv Golf League in 2022. Patrick Snell joining me now, this is a big move, Patrick.

PATRICK SNELL, CNN WORLD SPORT: Hi there. Erica, yeah, the five-time major winner has agreed to what's been called a one-time program for elite

players, and it could, he actually could be back in action as soon as this month. The 35-year-old is planning to play at the Farmers Insurance Open in

California in late January.

This is really significant, because it potentially brings in, as well other big-name players, potentially those who would qualify, Bryson DeChambeau

and Jon Rahm, two huge superstars of the game. So, it remains to be seen what happens with those players and others who might qualify as well.

But in terms of financial aspect, well the out-of-pocket cost for Koepka is going to be around $5 million that's going to be a charity donation to be

decided jointly with the Tour. And as for the other financial repercussions, no access to Tour equity or FedEx Cup bonus money as well

this year.

But as far as Brooks Koepka is concerned, the main thing for him, Erica, is that he's back on the U.S. PGA Tour circuit.

HILL: Yeah, how about that? All right, Patrick, appreciate it. "World Sport", of course, is up next with Patrick. I'll see you back here in 15

minutes at the top of the hour for the second hour of "Connect the World". Stay with us.

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[09:45:00]

(WORLD SPORT)

[10:00:00]

END