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Erin Burnett Outfront

DOJ Releases Tapes Of Maxwell Praising Trump, Maxwell Wants A Pardon; Trump Denies Knowing About Bolton Search, But Calls Him A "Low Life"; Stocks Surge As Powell, Under Trump Pressure, Hints At Rate Cut; Kremlin: No Putin-Zelenskyy Summit Planned, Trump Gives Putin 2 Weeks. Aired 7-8p ET

Aired August 22, 2025 - 19:00   ET

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

[19:00:24]

ERIN BURNETT, CNN HOST: OUTFRONT next:

The breaking news, Jeffrey Epstein's longtime associate fawning over Trump. New audio tonight of Ghislaine Maxwell speaking to Trump's DOJ, praising the president, also saying Epstein didn't kill himself, sending MAGA into a tailspin tonight.

Also this hour, growing questions tonight over why the FBI searched the home and office of Trump's former national security adviser, John Bolton, a man who has directly said that Trump is not fit to be president. Is this now payback.

And a monster rally. The Dow surging more than 800 points after the Fed chair opened the door to cutting interest rates. Did Trump's bullying of Jerome Powell work? Einstein and Ives are OUTFRONT on this Friday.

Let's go OUTFRONT.

And good evening. I'm Erin Burnett.

OUTFRONT tonight, the breaking news, Ghislaine Maxwell finally, in her own words and exonerating Donald Trump. Maybe that doesn't surprise you.

Trump's Justice Department releasing a two-day interview with Jeffrey Epsteins accomplice and the convicted sex trafficker Ghislaine Maxwell. Throughout the interview, which was conducted by Trump's personal attorney, who is now the deputy attorney general, Todd Blanche. During this interview, Maxwell brought Trump's name up first and then went out of her way to shower the president with praise.

(BEGIN AUDIO CLIP)

TODD BLANCHE, DEPUTY ATTORNEY GENERAL: Well, what did you observe as far as President Trump and his relationship with you or Mr. Epstein?

GHISLAINE MAXWELL, JEFFREY EPSTEIN'S ACCOMPLICE: Well, I just want to say from my relationship with President Trump, relationship is a big word. But I just want to say that I met him. I believe I may have because of my father in the '90s. And as far as I'm concerned, President Trump was always very cordial and very kind to me. And I just want to say that I find -- I admire his extraordinary achievement in becoming the president now. And I like him, and I've always liked him. So that is the sum and substance of my entire relationship with him.

(END AUDIO CLIP)

BURNETT: I mean, it's hard to imagine laying it on any thicker. If you're talking about the person who has the power to pardon you. She wants a pardon, and the only person who can give it is Trump. So maybe that's why she's saying how extraordinary his achievement is. How she's always liked him. She's sentenced and is serving now a 20 year sentence for helping Epstein groom and sexually abuse underage girls.

Ghislaine was charged for perjury, charged with perjury for lying in a 2016 deposition about Epstein's crimes. But now Trump's DOJ suddenly is treating her as a credible witness.

(BEGIN AUDIO CLIP)

BLANCHE: Did you ever observe President Trump receive a massage?

MAXWELL: Never, actually, never saw the president in any type of massage setting. I never witnessed the president in any inappropriate setting in any way. The president was never inappropriate with anybody. As in the times that I was with him, he was a gentleman in all respects.

BLANCHE: When's the last time you think you saw in person President Trump?

MAXWELL: It's -- it's been a long time. Probably not. Sometime in the beginning, mid, mid 2000s maybe. And it would only have been a social setting as far as I recall.

BLANCHE: And did you ever hear Mr. Epstein or anybody say that President Trump had done anything inappropriate with masseuse or with anybody in your world?

MAXWELL: Absolutely never, in any context.

(END AUDIO CLIP)

BURNETT: Now, of course, whatever. She is not credible. She's proven herself not to be credible. But Trump has never been accused of any wrongdoing. The real question, of course, though, is who knew what and who did what. And we still don't know.

Epstein was, of course, a close friend of Trump's. Several people on this program even called them best friends. So close that a crude drawing that was reportedly signed by Trump appeared in Epstein's 50th birthday book, something Maxwell was asked about by Blanche.

(BEGIN VIDEO CLIP) BLANCHE: We talked a few minutes ago about this birthday book that there's been press about. I understand you don't remember anything with President Trump or a lot about the book anyway. Do you remember asking President Trump to submit a letter for that?

MAXWELL: I do not.

(END AUDIO CLIP)

BURNETT: Time and again, though, Maxwell seemed to have an amazing amount of trouble remembering anything, any key details from her sick and twisted relationship with Epstein, which began more than 30 years ago. Just listen to this part.

(BEGIN AUDIO CLIP)

[19:05:04]

MAXWELL: I just don't remember what it's called. I don't remember that. I don't remember him doing either. I want to tell you that I don't remember. I don't remember ever seeing anybody that I would characterize as a child. I don't remember the letter. I don't remember it at all.

(END AUDIO CLIP)

BURNETT: Some of those things is pretty shocking to imagine, given that there are over 1,000 girls we understand, that are mentioned in the Epstein files, right? For her to say she doesn't remember.

I mean, she actually said, I don't remember 47 times throughout the interview with Blanche. And perhaps most insulting to the survivors and to the intelligence of anyone following this story, Maxwell also repeatedly denied that she and Epstein were trafficking underage girls, which, of course, is exactly what she is convicted of and exactly why she is serving a 20-year sentence.

An attorney for Virginia Giuffre, who played a key role in exposing Epstein and Maxwell, told me that Maxwell and I quote, is a masterful manipulator. She lies without concern over and over and over again.

Well, a week after this two-day interview with the DOJ, let's not forget this other crucial context that Maxwell was suddenly, without explanation, moved to a minimum security prison in Texas, where you can wander the grounds at will, minimal fencing in a residential neighborhood. There aren't cells, and there's yoga and Pilates. She got moved to that. It's unprecedented for someone convicted of her crimes. All of which made major questions tonight. And these tapes are coming out on the same day that the Justice Department turned over some of the Epstein files to the House Oversight Committee. Now, this has the potential to be very important. And Trump spoke about this decision earlier today.

(BEGIN VIDEO CLIP)

DONALD TRUMP,PRESIDENT OF THE UNITED STATES: I'm in support of keeping it totally open. I couldn't care less. You got a lot of people that could be mentioned in those files that don't deserve to be people, because he knew everybody in Palm Beach. I don't know anything about that. But I have said to pam and everybody else, give them everything you can give them because it's a -- it's a Democrat hoax. It's just a hoax. The whole Epstein thing is a Democrat hoax.

(END VIDEO CLIP)

BURNETT: And again, just to be clear, over 1,000 girls who were mentioned in those files. So whatever Trump may think about this, to call it a hoax with so many people who suffered at the hands of Epstein and Maxwell, that's a disgraceful thing to say.

Kristen Holmes is OUTFRONT live outside the White House.

Kristen, why did Trump's team decide to release these, you know, bit by bit, partial transcripts and clips today?

KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Erin, this has been topic of discussion for weeks. Remember when we first reported this earlier this month? It was quite a surprise that there was even audio. Not only that, there was audio and transcripts, but that they were really seriously considering releasing this publicly. Now, what we were told is that over time they started waffling back and forth as to whether or not it was a good idea.

In fact, at one point they were sending each other a CNN clip that showed that the searches for Jeffrey Epstein case were down dramatically, essentially deciding that putting it out at that time and giving more oxygen to the story when people were not as interested, would be a mistake. Now, the reason they were considering doing it in the first place was because they had spent so long on the defensive with this story, they really felt like they needed to get in front of this narrative. They were looking for a way to be transparent, so they spent this time going through these various audio clippings and transcripts, redacting things, digitizing things.

But one thing was clear today Epstein was going to be in the news. And the reason for that is this is the same day the Department of Justice was turning over a tranche of files to the House Oversight Committee. So that was something that we were going to be following incredibly closely. Of course, we were going to be reporting on. And this is the same day that they chose to put out these transcripts. And this audio, essentially getting out there with at least part of the story.

Now, whether or not this works in their favor is really something that time is going to tell. Just a reminder, the people who have been loudest in this fight to get information on Epstein are the people who support Donald Trump the most. And this has been very difficult for the White House to get around. So we'll see what their reaction is to this transcript if they think it's enough.

But remember, we're still waiting to see what the House Oversight Committee puts out as well.

BURNETT: Yeah, yeah. And so many questions of what we -- what we still don't know. Right. And what they think will be quote, unquote enough.

All right, Kristen, thank you so much at the White House on this Friday.

I want to go to Barry Levine. Of course, viewers know him. Former editor of "The National Enquirer" and author of "The Spider", about the Epstein investigation.

Also with us tonight, Jennifer Freeman, attorney for Epstein and Maxwell accusers, including Maria Farmer, who spoke to us here on OUTFRONT about seeing Trump at Epstein's office in the 1990s. And also Andrew McCabe, the former FBI deputy director.

So, I appreciate all of you.

Barry, let me start with you. Do you trust anything that Maxwell says in this interview with the DOJ's Todd Blanche?

BARRY LEVINE, AUTHOR, "THE SPIDER: INSIDE THE CRIMINAL WEB OF JEFFREY EPSTEIN & GHISLAINE MAXWELL": Well, Erin, I mean, to me, at least related to the president, it came across like it was some type of paid scripted infomercial, okay?

[1910:09]

I recall -- reminded me of a testimonial that Maxwell gave about Jeffrey Epstein at the time of his non-prosecution agreement in 2007, where she could only say wonderful things about him. At the same time, we found out that she was receiving millions of dollars from him. As far as -- as far as what she said, beyond that, it's what she didn't say. Okay? She's behind bars for a reason, and she would not fess up to any criminality related to Jeffrey Epstein, related to grooming these girls or even acknowledging that the girls that she recruited were underage.

Let's remind the people what happened at that trial. Jane, one of the witnesses, said that she was 14 years old, met them at a summer camp and that Ghislaine Maxwell was present during sex. Kate, another of the victims, said that Ms. Maxwell made her dress up in a schoolgirl outfit to serve Jeffrey Epsteins tea and then have sex with him. Carolyn, who was 14, said Maxwell first said, oh, you have a great body for Jeffrey Epstein and his friends.

This is the woman who sat with Todd Blanche for nine hours and rambled on, the biographical information she gave about herself was probably accurate and true, but when it came to what she did with Jeffrey Epstein, it was all lies.

BURNETT: I mean, you know, Jennifer, Maxwell said that she, quote, did not participate in that activity, referring to underage girls. Of course, she's serving a 20-year sentence for doing just that. But there was this this other part, Jennifer, that I have to play. She was asked by Blanche if Epstein was a, quote/unquote, creepy guy. Okay, a creepy guy. Here's how that went down.

(BEGIN AUDIO CLIP) MAXWELL: I think if he had been creepy, as you would define, and you would expect someone who was living that lifestyle to be creepy, I don't think the women would have been there. I don't think that they thought of him as creepy. And if they did, I never saw them behave like he was being weird. But he, as he defined it, he found it invigorating. He liked being with younger people. And I'm not just younger people, I'm just saying because they gave him ideas and they were up to date on music and --

BLANCHE: Yeah, but that's different, like a masseuse coming every day.

MAXWELL: I'm just telling you what he was saying to me.

(END AUDIO CLIP)

BURNETT: I mean, Jennifer, just to be clear, if you would think he was creepy, I don't think the women would have been here. I just want to say I take issue using the word women to talk about 14 and 15 underage girls, and to imply that they would -- I mean, it's just appalling.

What's your reaction when you hear her saying this, though, essentially defending Jeffrey Epstein clearly?

JENNIFER FREEMAN, ATTORNEY REPRESENTING EPSTEIN AND MAXWELL ACCUSERS: It's grotesque. It's another betrayal for the -- for the survivors again and again and again. They're not given a voice. And this is the person that's given the voice. It's outrageous.

I also think there's some interesting that creepy point is very interesting. And there's another interesting discrepancy. And that is that she said she never had any keys. Well, at least one of my clients saw her with many keys opening houses repeatedly.

So even the details, even those details, that one didn't have to misrepresent are misrepresented.

BURNETT: Director McCabe, I want to play more of what she had to say about Trump. I know I played some of it, it was very clear that it was quite fawning and obsequious. But let me play some more.

(BEGIN AUDIO CLIP)

MAXWELL: President Trump was always very cordial and very kind to me, and I just want to say that I find I admire his extraordinary achievement in becoming the president now. And I like him. And I've always liked him.

(END AUDIO CLIP)

BURNETT: Director, I just want to point out, I mentioned it briefly, but I want to emphasize something I said at the top of the program, and that is that Maxwell's first mention of Trump in this interview with Blanch came unprompted, right? He didn't even have to ask about him for her to bring him up. And then we played some of the things she went on to say in the most glowing terms, you know, calling him president, not by his name. And you actually say that that's not a coincidence, that the fact that she kept referring to him as president and not by his actual name?

ANDREW MCCABE, CNN SENIOR LAW ENFORCEMENT ANALYST: Yeah, I just think the entire thing, Erin, is, is so curious. It's so suspicious. It -- when you listen to the tapes, you get the sense that Ghislaine Maxwell went into that room knowing what information she had to deliver to get their attention and to get their approval and to get some sort of benefit that she is pursuing from the administration and the administration in the form of Todd Blanche went into that room knowing what information he needed, which was what she was going to say about Donald Trump's involvement or noninvolvement.

[19:15:16]

And both sides delivered to each other's satisfaction. Ghislaine Maxwell, unprompted, spoke glowingly of the president, referred to him only in the most respectful term, which you know, is obviously the way that he prefers to be treated. And we know that at the conclusion of this totally unconventional interview, an interview with someone who is purporting to try to become a government cooperator and has the opportunity to be interviewed by the deputy attorney general. That's something that never, ever happens.

There are no actual line agents or investigators in the room to serve as witnesses or to document the interview in the normal way. It's recorded and then immediately released to the to the public, which is not something you would ever do with the testimony of somebody who you were considering turning into a cooperator. Nothing about this process was conventional or normal, but it does seem that both the administration and Ghislaine Maxwell got exactly what they wanted from it.

BURNETT: Barry, you have a quote in your book from Ghislaine Maxwell. She's talking about Jeffrey Epstein in this quote. And you say, just reading it, my experience of Jeffrey is of a thoughtful, kind, generous, loving man with a keen sense of humor and a ready smile, a man of principles and values, and a man of his word. If he made a promise, he would always follow through.

Obviously, the context of that, I think, Jennifer used the right word when she was talking about, Maxwell's comments. It's grotesque. Youve pointed out, Barry, that there are similarities, though, in how Maxwell was treating Epstein and is now treating Trump.

LEVINE: Yeah. In fact, that, quote, Erin was from that testimonial that, her lawyer put over to or actually Jeffrey Epsteins lawyer put over to the prosecutors. She does things at the time, you know, boldface lies to get what she wants.

At that time, she wanted a release from Jeffrey Epstein. She didn't want to be named as one of his coconspirators in the paperwork. And at the same time, she ended up getting a lot of money in exchange for that glowing testimonial. And it seems to me, she's doing the same thing here with the president.

BURNETT: Jennifer, what about the I don't remember. I mean, I know I understand lawyers will counsel people to say that, to avoid answering questions. But she said, I don't remember 47 times in these interviews, which defies just, you know, defies intelligence of anybody. Do you believe her that she doesn't remember any of those details?

FREEMAN: It is not credible to not remember so many things and then to misrepresent them. So, seriously, I don't know if you're interested. Erin, I did try to talk to some of the victims about what happened, the release of information. So, I have a few quotes for you.

Maria Farmer said -- yeah. Maria Farmer said, this is another slap in the face by the federal government giving a voice to this child predator. Annie Farmer said, I can't read it. I'm sick to my stomach.

Marijke Chartouni said, she's like listening to Ted Bundy talk about his victims. Literally. What's the point? People like that can't differentiate lies from the truth.

And this is who should be listened to. And they're given no voice at all. But you've given it, and I really appreciate that.

BURNETT: Well, I appreciate you sharing what they what they are willing to share. As I said, there are, as we understand from a lot of the reporting, Tara Palmeri's reporting over a thousand women now, women, many of them at the time of the abuse, would have been young girls. It mentioned in those files.

Thank you all three very much.

And next, Maxwell says that she doesn't believe Epstein killed himself. Tonight, that has MAGA on fire. New details ahead from a reporter who just spoke to far-right conspiracy theorist Laura Loomer.

Plus, breaking news, stock surging after the Fed chairman suggesting he's open to cutting interest rates. Did Trump's bullying work?

(BEGIN VIDEO CLIP)

TRUMP: He's truly incompetent. He's a stiff. He's a knucklehead.

(END VIDEO CLIP)

BURNETT: And Russia rejecting Trump tonight, declaring that Putin will not meet face to face with Zelenskyy. Trump says he'll give Putin -- guess what? -- two weeks.

(COMMERCIAL BREAK)

[19:23:51]

BURNETT: Breaking news, just released audio of the Justice Department's interview with Ghislaine Maxwell reveals that she says she doesn't believe that Jeffrey Epstein committed suicide in his jail cell.

(BEGIN AUDIO CLIP)

BLANCHE: Do you? So you think he was -- he was -- he did not die by suicide, given all the things we just talked about.

MAXWELL: I do not believe he died by suicide.

BLANCHE: And do you believe that -- do you have any speculation or view of who killed him?

MAXWELL: I -- no, I don't.

(END AUDIO CLIP)

BURNETT: All right. Now, that particular clip is spreading like wildfire through MAGA world tonight.

Trump ally Laura Loomer, one of the loudest critics of how the administration handled the Epstein case, tweeted, quote, Ghislaine Maxwell told the DOJ there is no Epstein list and that Jeffrey Epstein didn't kill himself.

And she's not alone. Here are just a few more voices on the right, which quickly flagged Maxwell's comments. I'm just putting them up here so you can see -- Charlie Kirk among them, Benny Johnson. Keep in mind, just last month, Trump's own Justice Department said they put out -- put this out. They said, quote, "After a thorough investigation, FBI investigators concluded that Jeffrey Epstein committed suicide in his cell."

[19:25:04]

OUTFRONT now, "Politico" senior national politics correspondent Adam Wren.

And, Adam, I really appreciate you coming back on, because I know that throughout all of this, you have interviewed Laura Loomer multiple times. You just spoke to her today after the transcript and audio clips were released.

So first, I guess just based on the conversation you just had with her, how big of a problem is it that Maxwell says Epstein did not commit suicide? Going to be now, considering Trump's DOJ has said he did commit suicide?

ADAM WREN, POLITICO SENIOR CORRESPONDENT: Yeah. It's massively going to put gasoline on the fire of this story, particularly after congress comes back after labor day. But what's fascinating here is essentially with conservative influencers like Loomer, glomming on to this particular fact, they're essentially saying that they trust the Ghislaine Maxwell convicted sex offender more than they trust Donald Trump's own Justice Department, which I think is a problem for Attorney General Pam Bondi.

She was just, you know, backed by the president again this week, him saying that she was the greatest attorney general ever and had some insulation there. But this, again, sort of exposes her to criticism from MAGA.

BURNETT: Right. I mean, you talk about a convicted sex offender in the form of Ghislaine Maxwell, right? Thats who was speaking in these clips, right? Loomer also posted of the interview, and I -- and I quote, Maxwell said she admires Trump's extraordinary achievement in becoming the president now, and that obviously, that one clip we played. Let me play more of Maxwell in her own words.

(BEGIN AUDIO CLIP)

MAXWELL: I never witnessed the president in any inappropriate setting in any way. The president was never inappropriate with anybody. In the times that I was with him, he was a gentleman in all respects.

(END AUDIO CLIP)

BURNETT: So how do those comments land in MAGA world? Are they choosing to believe the person who is convicted of being a sex offender?

WREN: Yes, absolutely. They're trusting this person and they're essentially saying that, you know, she is someone who, you know, is clearing the president. Rogan O'Handley, the person known as D.C. Brain, you know, said that president Trump is clean. Otherwise, the deep state would have leaked things against him by this point.

So, politically, it's a short term win, I think, for President Donald Trump.

BURNETT: Yeah, absolutely. And I'll note, of course, he hasn't been accused of any wrongdoing in this either.

Adam, thank you very much. I appreciate your time.

And next, the breaking news, the FBI searching the home and office of John Bolton. A thunderbolt on this, actually, Trump's former national security adviser turned a very outspoken critic. Should Bolton be concerned?

(BEGIN VIDEO CLIP)

TRUMP: I'm not a fan of John Bolton. I thought he was a sleazebag, actually.

(END VIDEO CLIP)

BURNETT: Plus, the Fed chairman firing up the markets after suggesting he might finally do what Trump has told him to do cut interest rates. Did Trump's relentless attacks on Jerome Powell work?

(COMMERCIAL BREAK)

[19:32:23]

BURNETT: Breaking news, Trump claiming he was in the dark about the FBI searches at the home and offices of his former adviser turned foe, John Bolton.

(BEGIN VIDEO CLIP) TRUMP: I haven't spoken to Pam in the group yet, but I will be. I saw that just like everybody else. I try and stay out of that stuff. I'm allowed to be in. I'm chief law enforcement officer, believe it or not. You know, I don't like to go around saying that, but I am. That's the position.

But I purposely don't want to really get involved in it. I'm not a fan of John Bolton. I thought he was a sleazebag, actually. And he's a -- suffers major Trump derangement syndrome.

(END VIDEO CLIP)

BURNETT: Okay, well, here's what happened. We'll show you the video that we have here at OUTFRONT. This is Bolton arriving at his home in Maryland this afternoon. This was after the whole search.

Sources are telling CNN that the search stems from a newly revived investigation into whether Bolton disclosed classified information in his book, which came out in 2020. But it may be hard to believe that Trump knew nothing about the FBI search today. When you consider what he said back in 2020.

(BEGIN VIDEO CLIP)

TRUMP: What he did do is he took classified information and he published it during a presidency. I believe that he's a criminal, and I believe, frankly, he should go to jail for that.

(END VIDEO CLIP)

BURNETT: Okay. And now all of this is happening. And then there's what Bolton has said about Trump. He has been a loud and frequent critic of the president. Just listen to this.

(BEGIN VIDEO CLIP)

JOHN BOLTON, FORMER TRUMP NATIONAL SECURITY ADVISER: I don't think he's fit for office. I don't think he has the competence to carry out the job. Trump doesn't learn much very quickly. I think it's a -- it's an indication his mind is full of mush. I think it is a retribution presidency.

(END VIDEO CLIP)

BURNETT: Leon Panetta is OUTFRONT now. He has served in both Republican and Democratic administrations as both defense secretary and CIA director over the years.

And I so much appreciate your time, Secretary Panetta.

So I guess let's just cut to the bottom line on what's happened here. Do you believe that the raids on John Bolton's home and his office are political payback?

LEON PANETTA, FORMER CIA DIRECTOR: Well, you know, look, we don't know all the facts here because we don't know what the Justice Department said to a magistrate judge in order to get a warrant. But when you stand back, and you look at the criticism that John Bolton has made, and you look at the president and how sensitive he is about having those criticisms, particularly from somebody who was in his administration, it's pretty hard not to come to the conclusion that there's some targeting here going on.

[19:35:12]

BURNETT: And I -- and I know, you know, it can be both targeted. There could also be some truth in the claims, we don't know, but it could be targeting nonetheless. You know, I know that you have heard some of the criticism John Bolton has had for Trump since leaving the administration, right? He has spoken out and he has done so at risk, knowing that that would put a target on his back, a proverbial target for the president, Vice President Vance today, though, insisted that the administration is not targeting Bolton. No, he said, that is not what's happening. Not doing any such thing. Because he's a critic.

Listen to what Vance said.

(BEGIN VIDEO CLIP)

KRISTEN WELKER, NBC NEWS ANCHOR: Is Ambassador Bolton being targeted because he's a critic of President Trump?

J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES: No, not at all. We're going to be careful about that. We're going to be deliberate about that because we don't think that we should throw people, even if they disagree with us politically, maybe especially if they disagree with this politically. You shouldn't throw people willy nilly in prison.

(END VIDEO CLIP)

BURNETT: Okay, so he's saying were going to be careful. We're going to deliberate. We don't think we should throw people even if they disagree with us politically. Or maybe especially if they disagree with us willy-nilly into prison. Do you buy it?

PANETTA: Well, look, you know, I've served a number of presidents and, I don't know, a president yet who likes to be criticized by people who are in their administration. Or people in general.

I remember telling Bill Clinton that, the best way to deal with those that criticize you is to basically prove them wrong and prove your policies right. Retribution, very frankly, is a lousy way to try to deal with your opponents because you wind up chasing your own tail.

So, I hope that that's not involved here. Look, John Bolton is a guy who's got a lot of experience in foreign policy. I don't agree with everything he says, but he is pretty forthright in what he believes.

And you know what? People have a right to be able to say what they want. This is a free country. We do have free speech. President Trump would be the first person to say we should protect the right of free speech.

BURNETT: All right. Secretary Panetta, I appreciate your time. And thank you very much.

Mark Zaid is with me now, former national security attorney whose security clearance has been revoked by President Trump.

So, Mark, I guess just in that context, J.D. Vance saying, well, especially people who disagree with us, were not going to go after. But when we look at who's getting the security clearances revoked and who's getting searched, they are, of course, people who the administration deems to not be on their side.

I know that you believe Bolton does have some real reasons to be worried here. Okay, so and that doesn't mean that they could prosecute everybody that has reasons to be worried. They're choosing to prosecute him. But you do believe he has real, real reasons. What are they?

MARK ZAID, NATIONAL SECURITY ATTORNEY: Sure. Always good to be with you, Erin.

So -- and this could be still political as you said. If this search had happened five years ago, I would totally understand. It's when it's happening that is the issue. But here's the specific concerns that he needs to have.

I've represented many former government officials up to the secretaries of defense, including in the Trump administration, to have their books reviewed. When Bolton submitted his book for review to the White House, it was initially determined 500 pages to be full of voluminous amounts of classified information.

How did that book first get to the White House? It was reviewed by Bolton's lawyer, by Bolton's literary agent, by Bolton's publishers. Those are all unauthorized disclosures of classified information. Historically, for the last five decades, as long as the government was able to process the book and there was an agreement that there was nothing classified in it when it was published, the government would overlook those prior violations.

But that was a practice and a policy. It's not the law. And it looks like the Trump administration is changing that practice.

BURNETT: And it's also just to point out its five years after the book, right. So if you know, there were -- there were other times, but they you know, here we are. This is happening now.

When you look at the FBI Director Kash Patel, he had a 2023 book. He included Bolton mark on a list of members of the executive branch, deep state. That's what he called it. And now you see this happening, right? Of course. Patel is obviously running the FBI now. So, is that a coincidence?

ZAID: I don't think it's a coincidence at all. I mean, I've been saying for months, including on your network that this was coming.

[19:40:02] The Espionage Act in particular is one that is just ripe to be abused because it's so broad and powerful. And those in power in this administration made it very clear, preceding their coming back into power, what they were going to do and who they were going to target. So, there's nothing about today that surprises me. I'm just still concerned about what's going to happen tomorrow.

BURNETT: All right. Mark, thank you very much. Something I'll have to watch here, what happens. Thank you.

And next, a blockbuster day on Wall Street, and it was a big one after the Fed chair suggested that he may give Trump what he has been demanding. So, did Trump's insults on Powell work? Einstein and Ives are next.

Plus, Russia shutting down any hope of a sit down with Putin and Zelenskyy, something that may shock pretty much nobody. But Trump is now turning to one of his trusted talking points.

(BEGIN VIDEO CLIP)

TRUMP: But I'll let you know in about two weeks.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[19:45:12]

BURNETT: Tonight, Powell gives Trump what he wants. Federal Reserve Chair Jerome Powell signaling in his strongest terms yet that the Fed may cut interest rates as soon as next month.

Here were the keywords that sent stocks soaring today.

(BEGIN VIDEO CLIP)

JEROME POWELL, FEDERAL RESERVE CHAIRMAN: The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.

(END VIDEO CLIP)

BURNETT: To be clear, Powell talking about adjusting our policy stance to use those words may sound pretty esoteric, but it is a seismic statement. It comes after a months-long pressure campaign by Trump, also, he's repeatedly threatened to fire Powell and lashed out with personal insults against the Fed chair.

(BEGIN VIDEO CLIP)

TRUMP: He's truly incompetent. He's a stiff. He's a knucklehead. He's either evil or stupid. He's an average mentally person. Low IQ for what he does. Okay?

(END VIDEO CLIP)

BURNETT: Okay. Peter Tuchman and Dan Ives, Einstein and Ives are OUTFRONT.

So, Dan, let me start with you. I mean, there's a lot more where that came from with Trump over the past months. But now no more of Powell publicly disagreeing with Trump. You know, remember when Trump accused him of overspending at the Fed building that whole infamous scene when Powell was like, no, no, you're wrong. That is not what we got today. It looks like it's going to go Trump's way.

And you think that Trump's bullying worked?

DAN IVES, GLOBAL HEAD OF TECHNOLOGY RESEARCH, WEDBUSH SECURITIES: Look, I think it's all played into it, right?

I mean, the walls are caving in because the pressure from Trump. But I think also the dissenters. I mean, you had two dissenters in the last meeting, and this is something that if this continued to grow, it starts to become a huge control of your own house.

And I think, you know, and Peter and I have talked about this, the last thing Powell wanted to go down in his last, you know, Jackson Hole speech is when it was too late. And I think ultimately the pressure from the beltway, it was starting to have an impact.

BURNETT: And I know you were there. I mean, you were saying that Powell was about to lose control because you looked at that dissent, you looked at where it was going. You saw that for yourself the other day in Washington, Dan?

IVES: Yeah. Look, I think -- I think the writing was on the wall because more and more in D.C., you start to see, you know, I think a lot more pressure was building now. Did that pressure obviously get him. But you saw a clear shift on something I talked about the clear shift and that 202 pressure. The walls are caving in.

BURNETT: The walls are caving in. And yet here we are. He's trying to get out.

I mean, Peter, the surge in the markets was stunning, right? Almost a thousand points. Markets love lower rates. They got what they want often for the market. They don't necessarily care why somebody did it. If you did the right thing, fine. They'll take it and run.

But you do think this is the right move right now. So, what has changed so dramatically?

PETER TUCHMAN, TRADER AT THE NEW YORK STOCK EXCHANGE: You know what? Look, I don't think he caved under the pressure at all. I think you realize if you go back to that Fed meeting that we had a couple of Wednesdays ago, right, where he did not give us a cut, and he did not even give us guidance for September. It's -- he always claims, his decisions are economic data-based decisions. And at that moment in time, he was the table was not set for what happened today. Okay?

Since that Wednesday, two days later, Friday, all everything started to mount. You had the unemployment go up from 4.1 to 4.2. You had the jobless claims going. We were looking at 147,000 jobs created. We only had 47,000. They readjusted all of the last three back, back jobs numbers, all of that information, since a couple of Wednesdays ago started building to the point where we had this perfect storm.

BURNETT: So, do you think it changed that suddenly and that dramatically, Peter?

TUCHMAN: Absolutely, I really do. I think look, obviously, you know, look, he's sitting there with a puzzle, right. And all the different pieces of the puzzle just started to come into place really quickly, literally in the last week.

And I agree with Dan. I think the dissenters were a big part of it because you don't want to lose control of the house. And, you know, and he did not want his last speech at Jack -- this is his last Jackson Hole, right? He did not want that to be, you know, a sort of playing catch up on it or making the wrong decision for him.

Yeah. Yeah, exactly. And look, I think that today's decision was a good one. I think the markets response was appropriate to it. Look, we don't know how this is going to follow through when the cut actually happens. But I think he did the right thing. I do not think it was in response to because he's held his ground the whole time, really firm. And the way he positioned himself and the way he spoke today, right, he unpacked the luggage and. He made a beautiful plate there, and he gave the perfect explanation of why he made this decision today.

BURNETT: Well, I think it's interesting when the two of you don't necessarily see eye to eye, because it does just show, I guess, some of the questions. Maybe that's what Mohamed El-Erian was saying all the way along, which is if there's going to be a question about why you're doing it, then damage is being done into the institution. And that's not a good thing.

[19:50:01]

I mean, that's the question, you know, sort of the conversation we're having here.

All right. Thank you both. It's always great to see you and have a great weekend.

TUCHMAN: Pleasure. You, too.

BURNETT: And next, Russia saying no to Trump's summit between Putin and Zelenskyy. Trump's response he needs more time. Well, how much? Well, if you guessed two weeks, you are correct.

(COMMERCIAL BREAK)

BURNETT: Tonight, Russia says no to Trump, declaring in no uncertain terms that Putin is not meeting face to face with Zelenskyy.

(BEGIN VIDEO CLIP)

SERGEY LAVROV, RUSSIAN FOREIGN MINISTER: There is no meeting planned. Putin is ready to meet with Zelenskyy when the agenda would be ready for a summit, and this agenda is not ready at all.

(END VIDEO CLIP)

BURNETT: Remember, this is what White House spokeswoman Karoline Leavitt said about Putin-Zelenskyy meeting.

[19:55:04]

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: And I understand accommodations for that meeting are underway.

I can assure you that the United States government and the Trump administration is working with both Russia and Ukraine to make that bilateral happen, as we speak.

(END VIDEO CLIP)

BURNETT: Trump, for his part, with all of this falling apart, is going back to a familiar talking point.

(BEGIN VIDEO CLIP)

TRUMP: We're going to see whether or not they have a meeting that be interesting to see. And if they don't, why didn't they have a meeting? Because they told them to have a meeting. But I'll know in two weeks what -- what I'm going to do.

(END VIDEO CLIP)

BURNETT: Two weeks. You know, at this point, sort of wondering, does he do it on purpose? I mean, because he loves that time frame. He uses it on all sorts of topics, specifically on Russia and Ukraine, just among others. Trump loves a two-week deadline.

(BEGIN VIDEO CLIP)

REPORTER: Do you trust President Putin?

TRUMP: You know, in about two weeks.

REPORTER: Do you still believe that Putin actually wants to end the war?

TRUMP: I can't tell you that, but I'll let you know in about two weeks.

We have a buyer for TikTok, by the way. I'll tell you in about two weeks.

(END VIDEO CLIP)

BURNETT: This as Russia continues to build a dangerous alliance with one of the world's most ruthless dictators, North Korea's Kim Jong Un.

CNN's Will Ripley is OUTFRONT.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Russia unleashing one of its heaviest bombardments in weeks.

Hundreds of drones and dozens of missiles slamming into Ukrainian cities. And more than 4,000 miles away, North Korea, for the first time admitting its own soldiers, died in Vladimir Putin's war, staging a high octane performance, complete with a military band visually illustrating the death and destruction. Once a national secret, now a national spectacle, Kim Jong Un's troops hailed as heroes.

Stories glorifying soldiers who shot themselves in the head or pulled grenade pins to avoid capture.

The message dying for their leader, even by suicide, is the ultimate sacrifice. For nearly a year, Pyongyang rarely acknowledged that its troops were even fighting for Russia, despite estimates of more than 11,000 sent into battle. Western officials say as many as 4,000 killed or wounded.

Now, they're remembered in public ceremonies. Kim pinning medals on portraits, consoling, grieving families. More than 100 faces on this memorial wall, each one tied to a war North Korea barely acknowledged until now.

Why do you think it's taken so much time for North Korea to publicly acknowledge what the rest of the world has known?

COLIN ZWIRKO, SENIOR ANALYTIC CORRESPONDENT, NK NEWS: Kim Jong Un has to completely control the narrative inside the country because he's very afraid of backlash against himself.

RIPLEY: Meanwhile, the war in Ukraine shows no sign of slowing, even as U.S. President Donald Trump pushes for a face-to-face peace deal that so far is going nowhere. Instead, Moscow is tightening its wartime alliance with Pyongyang. Kim sending troops and artillery, Putin sending money and missile technology.

The center for strategic and international studies uncovered this. A secret North Korean missile base under construction for two decades, potentially capable of hitting any city in the U.S. Seth Jones with CSIS says Russia may be helping bankroll it.

SETH JONES, THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: Russia is providing missile technology to the North Koreans, and North Korea is now gaining battlefield experience.

RIPLEY: Kim's meeting with returning generals suggests this may be just the beginning. Propaganda preparing his country for more war in Ukraine and perhaps beyond.

(END VIDEOTAPE)

RIPLEY (on camera): And tonight, Ukrainian and western intelligence believe as many as 30,000 more North Korean troops could soon be sent to Russia. Erin analysts say Pyongyang's new narrative could be laying the groundwork for a surge of reinforcements.

BURNETT: Incredible, 30,000. Wow. Will, thank you so much, in Taipei tonight.

And before we go, a major update to a story that we've been following closely with you. And that is the story of Kilmar Abrego Garcia, the Maryland man, father of three, who the Trump administration mistakenly deported to El Salvador. He is, for now, free.

CNN captured the moment that Abrego Garcia walked out of a Tennessee prison today, after five months in custody. Now he's headed back to Maryland to see his family. The Trump administration maintains that Abrego Garcia is an MS-13 gang member. They have charged him with human smuggling.

But the administration has wavered on whether they would try to again to deport him before the trial starts. Attorneys for Abrego Garcia released a statement to OUTFRONT telling us that, quote, while his release brings some relief, we all know that he is far from safe. ICE detention or deportation to an unknown third country still threaten to tear his family apart. A measure of justice has been done, but the government must stop pursuing actions that will once again separate his family. Of course, we all see what happens from here.

Thank you so much for joining us.

"AC360" begins now.