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A Conversation With an Iraqi Studying in U.S. Under Fulbright Program

Aired June 29, 2004 - 13:32   ET

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

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


KYRA PHILLIPS, CNN ANCHOR: Top stories right now. In Sierra Leone, 24 people believed dead after a helicopter crashes into a hillside. Many aboard the helicopter worked for the United Nations. More than 11,000 U.N. peacekeepers had been in Sierra Leone, overseeing the country's peace accord since the end of civil war in 2002.
Secretary General Kofi Annan says the U.N. has launched an investigation into that crash.

And the federal government says motorists are getting cheapest gasoline at the pump in two months. Prices have fallen for five straight weeks. The nationwide average is $1.92 a gallon. Oil prices fell to a two-month low on high hopes for the Iraqi handover of power. Still, you're paying 43 cents per gallon more now than a year ago.

In Macon, Georgia, Chuck E. Cheese is recovering from an attack. A mom allegedly pelted the costumed restaurant mascot with pizza, and then police say she threatened to whip the employee behind the mask for not paying enough attention to her child. That incident happened Sunday. No charges have been filed.

Tribunals, election, and trials. They're part of Iraq's more immediate future as it moves towards democracy. But for one Iraqi man, the journey to democracy is starting in Bloomington, Indiana, with trips to the opera, shopping mall, and classes at Indiana University. Rawand Darwash is studying in the United States under the Fulbright program.

He joins me now live from Bloomington.

Let's start out, talk about life under Saddam Hussein, and what you remember before you came here to the United States.

RAWAND DARWASH, IRAQI FULBRIGHT SCHOLAR: Yes. Under Saddam Hussein, Saddam used to make Iraq a big prison. Saddam didn't want the Iraqi people to go out, to travel abroad. He banned satellite televisions, no cable. He banned Internet from the public. Saddam didn't want the Iraqis to know a lot about the outer world. He used a very -- a policy in which he paid very little salaries to the Iraqi people. Saddam wanted teachers, civil servants, everybody, to work 24 hour a day, so that nobody could think about politics. It was almost a hello. You know, you didn't have the right to oppose the government. Videos emerged of people whose tongues have been cut, who are beheaded. These are all methods used against those who oppose the former regime. PHILLIPS: So, Rawand, now that you have the chance to come to the United States, you're a Fulbright scholar. Life is very different here, as you have witnessed. Was it culture shock for you?

DARWASH: It was a cultural shock for me. I am very, very happy to be here in the United States. Actually, the sort of life here in the United States was not that strange for me. Because back in my country, in Iraq's (UNINTELLIGIBLE) region, I used to watch U.S. movies. So I have a little idea about how life was going on. However, it was different from movies. When we came, we thought that life would be like the movies, where violence, bank robberies, police chasing cars in the streets, but actually, it's not like that. Life is more peaceful. I saw New York. I saw Washington D.C. And everything is very, very nice.

PHILLIPS: So I'm curious, when you talk to your family in Iraq now and you talk to your friends, are you having to convince them that democracy is a good thing, or are they saying to you we do want it, we do want what's happening in our country right now?

DARWASH: Of course. In a country like Iraq, which was plagued by dictatorship for over 35 years, everybody's thirsty for democracy, and especially the Iraqi people in general. And the Kurdish people in particular, in Iraqi Kurdistan region, would like to implement this form of democracy and system here in the United States where you have tolerance, where you don't have second-class citizens where everybody's equal in front of the law. That's what the Iraqi people aspire to.

PHILLIPS: Now I understand you had a conversation with President Bush. You went to the White House. What did you tell the president?

DARWASH: It was a great opportunity for me to meet the president of the United States of America. And I told President Bush to support the federal solution for Iraq, and a federal democratic Iraq or solution for Iraq, and he said it's up to the Iraqi people to decide that, and actually, I benefited a lot from that meeting and I was very proud of it.

PHILLIPS: I want to ask you one final question, Rawand, and that is, I know you talked to a lot of your friends who are journalists. You are pursuing journalism. You want to do that. They are telling you a lot of the stories we're getting are exaggerated, that actually while there is a security threat, there is a lot of good things happening in Iraq. I'm just curious. Do you think that an Iraqi army can get rid of the terrorism and the extremists that are plaguing that country right now?

DARWASH: Actually, the current stage of Iraq's history, the U.S. Army's extremely needed. Power was handed over to Iraqis, yes, that was a very good step in the right direction. However, Iraq and the Iraqi people are still vulnerable, vulnerable to international terrorists, to neighboring country's hidden agendas, and that's why the United States must keep its army in Iraq for the -- at the current stage of history, because they are needed there. The Iraqi army, they are still -- they cannot handle the issue of fighting terrorism alone in Iraq, because the -- we need to -- the support of the U.S. army currently in Iraq. I am seriously saying about that. Iraq cannot fight terrorism alone. They don't have now a powerful army for the time being. They are making (UNINTELLIGIBLE), so it's not enough.

PHILLIPS: Well, I know you're taking advantage of your Fulbright scholarship to go back to your country, promote democracy. I hope you'll join us again and talk about what you are doing in Iraq once you go back home.

DARWASH: Thank you.

PHILLIPS: Thank you so much. Rawand Darwash, what a pleasure.

Whether you're selling or buying, you're thinking about interest rates. So is the Fed? The word from the big meeting. How could it affect you? We'll talk about it coming up.

Presidential contender John Kerry could capitalize on voter's uncertainty about President Bush, but is he?

And Barbie's new boyfriend. Can he be had today for a price? Love for sale. As LIVE FROM continues.

(COMMERCIAL BREAK)

PHILLIPS: Democrat John Kerry is in Chicago with Jesse Jackson, promoting minority education. Kerry says a million more students will graduate from college in his first five years in office. He says nearly half will come from population increases and the rest from his policies.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I am running for president to make America's dreams real again to fight with you in these struggles, to do what we need to do to live up to the expectations of a generation that follows us, that knows that our obligation is to leave this place to them in better shape than we were given it by our parents.

The poet...

(END VIDEO CLIP)

PHILLIPS: The newest polls show Kerry has his work cut out for him. The biggest group, 36 percent, say they are undecided, or don't know who they'll vote for. Twenty-nine percent have a favorable view of Kerry, with 35 percent unfavorable.

So what happens next in Iraq will certainly be an issue in the presidential election. What are Americans thinking about right now?

Our senior political analyst Bill Schneider has some insights.

(BEGIN VIDEOTAPE) BILL SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): The American public views the handover of power in Iraq more or less the same way Iraqis do, with hope but without illusions.

When questioned last week, Americans said they believed the handover will improve the situation in Iraq, as many Iraqis we talked to do.

UNIDENTIFIED MALE (through translator): We hope that we leave the past behind and lead a good life.

SCHNEIDER: Americans are cautiously optimistic that democracy will be established in Iraq, but the U.S. public is not optimistic that peace and security will be established. A concern shared by this member of the former Iraqi Governing Council.

UNIDENTIFIED MALE: I think we are in state of war, almost, and that's why in such cases even other governments, any country, they could take measures.

SCHNEIDER: It is progress, of course, that the terrorists are now on the other side, fighting the Iraqi government.

BUSH: 15 months ago, Iraq was a state sponsor of terrorism. Today Iraq's leaders, with our support, are systematically fighting terrorists across their country.

SCHNEIDER: So do Americans see the handover as a sign that U.S. policy is succeeding? The answer is no.

By nearly 2 to 1, the public says the transfer of power is a sign that U.S. policy is failing because the United States is turning over power to the Iraqis without bringing stability to Iraq.

Republicans don't feel that way. But Democrats do, overwhelmingly, and so do independents.

As most Americans see it, the United States is saying to Iraq, the insurgency is primarily your problem. Does that mean U.S. policy is to cut and run? Absolutely not.

BUSH: We'll follow through, no matter how tough it gets on the ground.

SCHNEIDER: The United States is not running anywhere.

IYAD ALLAWI, IRAQI PRIME MINISTER (through translator): The transformation of societies will not take place in weeks or days or months but this transformation will take years.

SCHNEIDER: That's what Americans are worried about. Most Americans believe a significant number of U.S. forces will remain in Iraq for three years or more, but 70 percent of Americans don't think they should be there that long.

(on camera): The handover means the U.S. is no longer legally the occupying power. It's propping up a government with shaky authority. Americans believe that's progress, but not yet success.

Bill Schneider, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Well, meet the man the Green Party went with instead of Ralph Nader, today at 3:30 Eastern. That and all the latest campaign news on Judy Woodruff's "INSIDE POLITICS," right here on CNN.

Ah, flowing water in a soothing park atmosphere, it sounds nice. But is it nice enough to honor a princess? Diana Fountain flap, as we go around the world.

(COMMERCIAL BREAK)

PHILLIPS: News around the world now. In London, the first permanent memorial to the late Princess Diana was unveiled in Hyde Park. Critics of the 690-foot long water sculpture include Diana's late mother, Frances Shand Kydd, who said, "The design lacked grandeur." But Kathryn Gustafson, the American designer of the memorial says the water is meant to evoke Diana's effervescent character.

Coming soon to a newsstand near you, a Donald Trump magazine. "Trump World" is actually a relaunch of a publication that "USA Today" terms a vanity magazine. For his part, Trump calls it branding thing, and says, the targeted reader buys a lot and spends a lot.

So, you say you like superheroes and you happen to be an insomniac? Well, check local listings for a special debut for "Spider-man 2," which opens in select cities tonight at the stroke of midnight.

(BUSINESS UPDATE)

PHILLIPS: It may be one of the worst kept secrets in Washington or the financial world. The Federal Reserve's Monetary Committee starts two days of meetings in the nation's capital. Tomorrow, Alan Greenspan and company will announce whether interest rates go up or stay the same. Kathleen Hays is in New York where all bets are on a rate hike -- Kathleen.

KATHLEEN HAYS, CNN CORRESPONDENT: Well, you know, Kyra, I can tell you that Alan Greenspan does not have streaks in his hair, he does not look like Outback Jack. You know he was just reconfirmed as the 70-year-old Fed chairman who has been there years and years.

But, you know the Fed hasn't raise the interest rates in over four years. That's why this is a big deal for Wall Street. Because they're going take their key rate at a 45-year low at 1 percent. It has made borrowing very cheap for everybody.

And take a baby step. That's the expectation. Take it to 1.25 percent. So they're just starting to turn this big ship of an economy, which they think is growing very healthily now. What they're worried about is it can get too healthy and cause inflation. higher gas prices, higher rents, all kind of things that are tough on consumer.

Now we've got some news underscoring what the Fed is look at. June consumer confidence hit a two-year high. And one of the key things they ask people, about five questions. two about jobs. A lot more people saying no -- jobs are no longer hard to get. It was about 30 percent of the people they were surveying saying hard to get. Now it's down to about 26 percent.

So it just underscores jobs are being created, that's turning around.

Another plus for consumers, probably another reason when we get this good consumer confidence reading, oil prices, gas prices coming off their recent peaks. Today crude oil prices hit a better than two- month low. The Iraq handover creating optimism that now there will be fewer insurgencies, fewer attacks, that this very important oil region can start flowing more oil, that the whole Middle East might be more stable. Optimistic. Nevertheless, that's reflected in the market today.

Now of course the bottom line is, for most people, what does it mean for my pocketbook? For many people, the rate they're most acquainted with is their mortgage rate. One thing to think about, if you take out an adjustable rate mortgage, short-term mortgage, those rates have very, very been low. Bit a lot of those rates reprise every year. They move pretty directly with the Fed rate hikes.

The Fed's expected to raise its key rate as high as 3 percent or more. So think twice about the adjustable-rate mortgage. If it resets next year, it could look a lot higher to you.

If you've got a 30-year fixed rate, those rates have already moved higher in anticipation of the Fed. If the Fed keeps raising rates this year, those could go even higher. So if you're thinking about refinancing, another time to look at your rate, see what's going on.

It will all be about the Fed policy statement tomorrow. If they sound like they're not worried about inflation, maybe not so many rate hike, maybe those mortgages don't look so -- well, opposite of enticing, I guess. Maybe worrisome. If the Fed isn't worried, not too worried about the economy overheating, then maybe those mortgage rates won't go too high this year. That's why you have to keep watching the business news. Kyra, back to you.

PHILLIPS: And keep watching Kathleen Hays, thank you.

Coming up in our second hour of LIVE FROM, the debate over smut. Oh, Yes, the online porn ruling from the Supreme Court has ruffled a few feather. Get both sides when LIVE FROM's hour of power next.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired June 29, 2004 - 13:32   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Top stories right now. In Sierra Leone, 24 people believed dead after a helicopter crashes into a hillside. Many aboard the helicopter worked for the United Nations. More than 11,000 U.N. peacekeepers had been in Sierra Leone, overseeing the country's peace accord since the end of civil war in 2002.
Secretary General Kofi Annan says the U.N. has launched an investigation into that crash.

And the federal government says motorists are getting cheapest gasoline at the pump in two months. Prices have fallen for five straight weeks. The nationwide average is $1.92 a gallon. Oil prices fell to a two-month low on high hopes for the Iraqi handover of power. Still, you're paying 43 cents per gallon more now than a year ago.

In Macon, Georgia, Chuck E. Cheese is recovering from an attack. A mom allegedly pelted the costumed restaurant mascot with pizza, and then police say she threatened to whip the employee behind the mask for not paying enough attention to her child. That incident happened Sunday. No charges have been filed.

Tribunals, election, and trials. They're part of Iraq's more immediate future as it moves towards democracy. But for one Iraqi man, the journey to democracy is starting in Bloomington, Indiana, with trips to the opera, shopping mall, and classes at Indiana University. Rawand Darwash is studying in the United States under the Fulbright program.

He joins me now live from Bloomington.

Let's start out, talk about life under Saddam Hussein, and what you remember before you came here to the United States.

RAWAND DARWASH, IRAQI FULBRIGHT SCHOLAR: Yes. Under Saddam Hussein, Saddam used to make Iraq a big prison. Saddam didn't want the Iraqi people to go out, to travel abroad. He banned satellite televisions, no cable. He banned Internet from the public. Saddam didn't want the Iraqis to know a lot about the outer world. He used a very -- a policy in which he paid very little salaries to the Iraqi people. Saddam wanted teachers, civil servants, everybody, to work 24 hour a day, so that nobody could think about politics. It was almost a hello. You know, you didn't have the right to oppose the government. Videos emerged of people whose tongues have been cut, who are beheaded. These are all methods used against those who oppose the former regime. PHILLIPS: So, Rawand, now that you have the chance to come to the United States, you're a Fulbright scholar. Life is very different here, as you have witnessed. Was it culture shock for you?

DARWASH: It was a cultural shock for me. I am very, very happy to be here in the United States. Actually, the sort of life here in the United States was not that strange for me. Because back in my country, in Iraq's (UNINTELLIGIBLE) region, I used to watch U.S. movies. So I have a little idea about how life was going on. However, it was different from movies. When we came, we thought that life would be like the movies, where violence, bank robberies, police chasing cars in the streets, but actually, it's not like that. Life is more peaceful. I saw New York. I saw Washington D.C. And everything is very, very nice.

PHILLIPS: So I'm curious, when you talk to your family in Iraq now and you talk to your friends, are you having to convince them that democracy is a good thing, or are they saying to you we do want it, we do want what's happening in our country right now?

DARWASH: Of course. In a country like Iraq, which was plagued by dictatorship for over 35 years, everybody's thirsty for democracy, and especially the Iraqi people in general. And the Kurdish people in particular, in Iraqi Kurdistan region, would like to implement this form of democracy and system here in the United States where you have tolerance, where you don't have second-class citizens where everybody's equal in front of the law. That's what the Iraqi people aspire to.

PHILLIPS: Now I understand you had a conversation with President Bush. You went to the White House. What did you tell the president?

DARWASH: It was a great opportunity for me to meet the president of the United States of America. And I told President Bush to support the federal solution for Iraq, and a federal democratic Iraq or solution for Iraq, and he said it's up to the Iraqi people to decide that, and actually, I benefited a lot from that meeting and I was very proud of it.

PHILLIPS: I want to ask you one final question, Rawand, and that is, I know you talked to a lot of your friends who are journalists. You are pursuing journalism. You want to do that. They are telling you a lot of the stories we're getting are exaggerated, that actually while there is a security threat, there is a lot of good things happening in Iraq. I'm just curious. Do you think that an Iraqi army can get rid of the terrorism and the extremists that are plaguing that country right now?

DARWASH: Actually, the current stage of Iraq's history, the U.S. Army's extremely needed. Power was handed over to Iraqis, yes, that was a very good step in the right direction. However, Iraq and the Iraqi people are still vulnerable, vulnerable to international terrorists, to neighboring country's hidden agendas, and that's why the United States must keep its army in Iraq for the -- at the current stage of history, because they are needed there. The Iraqi army, they are still -- they cannot handle the issue of fighting terrorism alone in Iraq, because the -- we need to -- the support of the U.S. army currently in Iraq. I am seriously saying about that. Iraq cannot fight terrorism alone. They don't have now a powerful army for the time being. They are making (UNINTELLIGIBLE), so it's not enough.

PHILLIPS: Well, I know you're taking advantage of your Fulbright scholarship to go back to your country, promote democracy. I hope you'll join us again and talk about what you are doing in Iraq once you go back home.

DARWASH: Thank you.

PHILLIPS: Thank you so much. Rawand Darwash, what a pleasure.

Whether you're selling or buying, you're thinking about interest rates. So is the Fed? The word from the big meeting. How could it affect you? We'll talk about it coming up.

Presidential contender John Kerry could capitalize on voter's uncertainty about President Bush, but is he?

And Barbie's new boyfriend. Can he be had today for a price? Love for sale. As LIVE FROM continues.

(COMMERCIAL BREAK)

PHILLIPS: Democrat John Kerry is in Chicago with Jesse Jackson, promoting minority education. Kerry says a million more students will graduate from college in his first five years in office. He says nearly half will come from population increases and the rest from his policies.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I am running for president to make America's dreams real again to fight with you in these struggles, to do what we need to do to live up to the expectations of a generation that follows us, that knows that our obligation is to leave this place to them in better shape than we were given it by our parents.

The poet...

(END VIDEO CLIP)

PHILLIPS: The newest polls show Kerry has his work cut out for him. The biggest group, 36 percent, say they are undecided, or don't know who they'll vote for. Twenty-nine percent have a favorable view of Kerry, with 35 percent unfavorable.

So what happens next in Iraq will certainly be an issue in the presidential election. What are Americans thinking about right now?

Our senior political analyst Bill Schneider has some insights.

(BEGIN VIDEOTAPE) BILL SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): The American public views the handover of power in Iraq more or less the same way Iraqis do, with hope but without illusions.

When questioned last week, Americans said they believed the handover will improve the situation in Iraq, as many Iraqis we talked to do.

UNIDENTIFIED MALE (through translator): We hope that we leave the past behind and lead a good life.

SCHNEIDER: Americans are cautiously optimistic that democracy will be established in Iraq, but the U.S. public is not optimistic that peace and security will be established. A concern shared by this member of the former Iraqi Governing Council.

UNIDENTIFIED MALE: I think we are in state of war, almost, and that's why in such cases even other governments, any country, they could take measures.

SCHNEIDER: It is progress, of course, that the terrorists are now on the other side, fighting the Iraqi government.

BUSH: 15 months ago, Iraq was a state sponsor of terrorism. Today Iraq's leaders, with our support, are systematically fighting terrorists across their country.

SCHNEIDER: So do Americans see the handover as a sign that U.S. policy is succeeding? The answer is no.

By nearly 2 to 1, the public says the transfer of power is a sign that U.S. policy is failing because the United States is turning over power to the Iraqis without bringing stability to Iraq.

Republicans don't feel that way. But Democrats do, overwhelmingly, and so do independents.

As most Americans see it, the United States is saying to Iraq, the insurgency is primarily your problem. Does that mean U.S. policy is to cut and run? Absolutely not.

BUSH: We'll follow through, no matter how tough it gets on the ground.

SCHNEIDER: The United States is not running anywhere.

IYAD ALLAWI, IRAQI PRIME MINISTER (through translator): The transformation of societies will not take place in weeks or days or months but this transformation will take years.

SCHNEIDER: That's what Americans are worried about. Most Americans believe a significant number of U.S. forces will remain in Iraq for three years or more, but 70 percent of Americans don't think they should be there that long.

(on camera): The handover means the U.S. is no longer legally the occupying power. It's propping up a government with shaky authority. Americans believe that's progress, but not yet success.

Bill Schneider, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Well, meet the man the Green Party went with instead of Ralph Nader, today at 3:30 Eastern. That and all the latest campaign news on Judy Woodruff's "INSIDE POLITICS," right here on CNN.

Ah, flowing water in a soothing park atmosphere, it sounds nice. But is it nice enough to honor a princess? Diana Fountain flap, as we go around the world.

(COMMERCIAL BREAK)

PHILLIPS: News around the world now. In London, the first permanent memorial to the late Princess Diana was unveiled in Hyde Park. Critics of the 690-foot long water sculpture include Diana's late mother, Frances Shand Kydd, who said, "The design lacked grandeur." But Kathryn Gustafson, the American designer of the memorial says the water is meant to evoke Diana's effervescent character.

Coming soon to a newsstand near you, a Donald Trump magazine. "Trump World" is actually a relaunch of a publication that "USA Today" terms a vanity magazine. For his part, Trump calls it branding thing, and says, the targeted reader buys a lot and spends a lot.

So, you say you like superheroes and you happen to be an insomniac? Well, check local listings for a special debut for "Spider-man 2," which opens in select cities tonight at the stroke of midnight.

(BUSINESS UPDATE)

PHILLIPS: It may be one of the worst kept secrets in Washington or the financial world. The Federal Reserve's Monetary Committee starts two days of meetings in the nation's capital. Tomorrow, Alan Greenspan and company will announce whether interest rates go up or stay the same. Kathleen Hays is in New York where all bets are on a rate hike -- Kathleen.

KATHLEEN HAYS, CNN CORRESPONDENT: Well, you know, Kyra, I can tell you that Alan Greenspan does not have streaks in his hair, he does not look like Outback Jack. You know he was just reconfirmed as the 70-year-old Fed chairman who has been there years and years.

But, you know the Fed hasn't raise the interest rates in over four years. That's why this is a big deal for Wall Street. Because they're going take their key rate at a 45-year low at 1 percent. It has made borrowing very cheap for everybody.

And take a baby step. That's the expectation. Take it to 1.25 percent. So they're just starting to turn this big ship of an economy, which they think is growing very healthily now. What they're worried about is it can get too healthy and cause inflation. higher gas prices, higher rents, all kind of things that are tough on consumer.

Now we've got some news underscoring what the Fed is look at. June consumer confidence hit a two-year high. And one of the key things they ask people, about five questions. two about jobs. A lot more people saying no -- jobs are no longer hard to get. It was about 30 percent of the people they were surveying saying hard to get. Now it's down to about 26 percent.

So it just underscores jobs are being created, that's turning around.

Another plus for consumers, probably another reason when we get this good consumer confidence reading, oil prices, gas prices coming off their recent peaks. Today crude oil prices hit a better than two- month low. The Iraq handover creating optimism that now there will be fewer insurgencies, fewer attacks, that this very important oil region can start flowing more oil, that the whole Middle East might be more stable. Optimistic. Nevertheless, that's reflected in the market today.

Now of course the bottom line is, for most people, what does it mean for my pocketbook? For many people, the rate they're most acquainted with is their mortgage rate. One thing to think about, if you take out an adjustable rate mortgage, short-term mortgage, those rates have very, very been low. Bit a lot of those rates reprise every year. They move pretty directly with the Fed rate hikes.

The Fed's expected to raise its key rate as high as 3 percent or more. So think twice about the adjustable-rate mortgage. If it resets next year, it could look a lot higher to you.

If you've got a 30-year fixed rate, those rates have already moved higher in anticipation of the Fed. If the Fed keeps raising rates this year, those could go even higher. So if you're thinking about refinancing, another time to look at your rate, see what's going on.

It will all be about the Fed policy statement tomorrow. If they sound like they're not worried about inflation, maybe not so many rate hike, maybe those mortgages don't look so -- well, opposite of enticing, I guess. Maybe worrisome. If the Fed isn't worried, not too worried about the economy overheating, then maybe those mortgage rates won't go too high this year. That's why you have to keep watching the business news. Kyra, back to you.

PHILLIPS: And keep watching Kathleen Hays, thank you.

Coming up in our second hour of LIVE FROM, the debate over smut. Oh, Yes, the online porn ruling from the Supreme Court has ruffled a few feather. Get both sides when LIVE FROM's hour of power next.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com