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Saddam Hussein Turned Over to Iraq; Shoot-out in Saudi Arabia Kills Suspected al Qaeda Members; Interview With Andrea Jaeger

Aired June 30, 2004 - 15:00   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: Welcome back to LIVE FROM. I'm Kyra Phillips.
FREDRICKA WHITFIELD, CNN ANCHOR: And I'm Fredricka Whitfield. Here's what is happening at this hour.

The cost of borrowing money is on the way up. A short time ago, the Federal Reserve announced a quarter-point boost in a key interest rate that affects the cost of credit throughout the economy. Apparently, economists see the rate increase as an indicator the economy is strengthening.

Saddam Hussein is not longer a prisoner of war. Iraq's longtime leader, while still under guard by U.S. forces, is classified now as a criminal defendant of the new Iraq. He is expected to appear tomorrow morning, early, overnight, in fact, before an Iraqi judge.

Cameras in the courtroom for the trial of Kobe Bryant. That's what Court TV wants, citing all the in the interest in the case. The NBA star is accused of sexually assaulting a hotel employee a year ago today. His trial is set to begin August 27; $27,500 each, that's how much the 20 CBS-owned stations could be fined for showing the Super Bowl halftime show. The Federal Communications Commission has been looking into charges of indecency in connection with the program -- Kyra.

PHILLIPS: Saddam Hussein is a step closer to being tried by the nation he ruled and some say terrorized. Today, the coalition handed over legal custody to Iraq.

CNN's Brent Sadler filed this report from Baghdad.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): He's been forced to take the first step on a long road to justice, no longer a prisoner of war, subject instead to Iraq's own penal code.

Justice is being seen to be done in Iraqi homes once starved of uncensored news. Their former president faces a possible death penalty for 35 years of merciless rule. This is the old Saddam, bestowing rewards on loyal acolytes, a far cry from his latest appearance, where he wanted to ask questions, a request denied. His upcoming trial months away has set off passionate debate here.

Ibraham Saad (ph), a shopkeeper, claims Saddam killed his sons and let his family starve. Ibraham rages: "He left us with nothing but our underwear. May he be cursed in this world and the next."

But with the anonymity of radio, Iraqi opinion may not be so clear-cut. A popular radio station here took a straw poll of listeners during a one hour phone-in. It concluded that while just over 45 percent supported the death sentence for Saddam, a stunning 41 percent thought he should be released.

(on camera): The legal fate of 11 of Saddam Hussein's top officials was also transferred to Iraqi control, although they'll all remain locked up in an American-run jail.

(voice-over): Tariq Aziz, one of the best known faces of the old region, was also transferred to Iraqi custody, along with Ali Hassan al-Majid, known as Chemical Ali for his alleged role in using chemical weapons, said to be visibly shaking.

The deposed leadership is expected to face charges of crimes against humanity, including genocide.

"Saddam deserves a slow death, slower than slow," says Ahmed Shinjah (ph), a restaurateur, "in the way he made innocent people suffer."

Iraq is demonstrating freedom of expression, after liberation from Saddam Hussein and his handover to the new Iraqi government.

Brent Sadler, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: As just about everyone expected, the guerrilla violence continued despite the return self-rule. Today, insurgents fired at least 10 mortar rounds at a U.S. military base outside Baghdad International Airport; 11 American soldiers were wounded, two of them seriously. One round hit a petroleum products yard, setting off a fire that burned for more than an hour.

The Iraqi flag is now waving above the Iraqi Embassy in Washington. It was raised at a ceremony today marking the return of Iraqi sovereignty.

WHITFIELD: An afternoon shoot-out in Riyadh, Saudi Arabia, leaving what are believed to be al Qaeda militants dead.

Our Nic Robertson joins us now via video link from Riyadh -- Nic.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Well, Fredricka, sources here are telling us that not only was this man a leading member of al Qaeda leader in Saudi Arabia, he is what is described as their chief ideologue, the man behind the religious justification for the killing of Western expatriate workers here in Saudi Arabia.

According to sources, police began following him sometime earlier in the day, chased him to a neighborhood about seven kilometers, about four miles from where we are now, still very much in Riyadh, the capital of Saudi Arabia, surrounded the building he was in. The firefight began. He was killed. We're told the operation is still ongoing. We've also been told that one police officer has been killed, six policemen lightly wounded and three passersby also caught in the crossfire lightly wounded as well.

And the sources have told us that they have already -- police have already recovered a large amount of explosives and weapons from this particular building. They say that the killing of this man is very important, because he was, as they call him, the chief ideologue of al Qaeda in Saudi Arabia -- Fredricka.

WHITFIELD: And, Nic, can you give us a sense of what happened just preceding the shoot-out?

ROBERTSON: The details are still not entirely clear. But what we have been told is that police somehow, and we don't know exactly how, recognized that he was in one part of the city, picked him up, if you will, tailed him, followed him to this other neighborhood. Then, when he went into this particular building, that is when the operation began, about mid-afternoon Riyadh time, that's about six or seven hours ago, surrounded the building that he was in and the firefight ensued after that, Fredricka.

WHITFIELD: All right, Nic Robertson, thanks very much for that report from Riyadh, Saudi Arabia -- Kyra.

PHILLIPS: As predicted, the Federal Reserve last hour raised a key interest by a quarter of percentage point. After years of cheap borrowing, is the party over for good?

CNN's Ceci Rodgers takes a look for us.

(BEGIN VIDEOTAPE)

CECI RODGERS, CNN CORRESPONDENT (voice over): It had to end sometime. Easy money that opened the flood gates for multiple refinancing and zero percent car loans had to end. Interest rates have already been creeping up as the market anticipates a Federal Reserve rate hike.

Do you think that the Federal Reserve will raise interest rates?

UNIDENTIFIED MALE: I think so, yes. It's going to affect a lot of people.

UNIDENTIFIED FEMALE: Well, I'm just trying to pay off debt and deal with things now as opposed to increasing my debt as the rates get higher.

RODGERS: Financial planners are urging their clients to do just that. Credit card debt can be treacherous for consumers as the interest rate rises in lock step with market rates. For the same reason, adjustable rate mortgages may be a riskier choice for homeowners now that interest rates have turned up.

MARC FREEDMAN, FREEDMAN FINANCIAL: Those that have adjustable interest rates, I would say now is the time to turn those into fixed interest rates. There's no need for adjustable interest rates any more or adjustable rate mortgages as we approach a rise in interest rate environment.

RODGERS: Economists predict a doubling of the Federal Funds Rate to 2 percent by year end. That's a huge jump in percentage terms. But economists say in real terms, it isn't because rates are rising from such low levels.

DIANE SWONK, BANK ONE: We're not going to see the kind of interest rates that we saw in the 1980s. We're going to see rates that we've more come accustomed to in the last five to 10 years. I mean, we're returning to more reasonable leveling of rates.

RODGERS: Investors may have a hard time deciding which investment will fair better as rates rise, since a lot hinges on whether inflation become as bigger problem. But there seems to be a consensus on what investors should avoid.

FREEDMAN: Long-term bonds may be ones that are worth selling right now, taking the profit margin you've earned on those bonds and reallocating them either into the stock market or simply into cash.

RODGERS (on camera): Higher interest rates do have a silver lining, they'll eventually show up on the interest paid on money market funds and certificates of deposit, investments that were once popular with small investors until rock bottom interest rates cut their returns to next to nothing.

Ceci Rodgers, CNN financial news, Chicago.

(END VIDEOTAPE)

PHILLIPS: Other news across America now.

He's back, radio shock jock Howard Stern returning to the air in four markets where his syndicated morning show was dropped. Months after being dumped by Clear Channel, Stern's show is being picked up by rival Infinity Broadcasting, which syndicates Stern's show. Infinity is also adding Stern's show to five new markets.

Recouping the costs, the Boy Scouts of America being sued for close to $14 million for a devastating fire set at a scout camp in 2002. Both the federal government and state of Utah are trying recover costs of fighting that blaze. The Boy Scouts has not admitted responsibility for the fire.

And a California boy who tried to shimmy down a chimney learned that gravity doesn't always do the trick. The 11-year-old boy got stuck halfway down the chimney at his friend's house yesterday. After several attempts, firefighters finally pulled him out.

A woman who introduced Scott Peterson to his mistress testified today in his double murder trial.

CNN's Ted Rowlands is following the case in Redwood City and joins us -- Ted.

TED ROWLANDS, CNN CORRESPONDENT: Fredricka, the jury listened very intently to the testimony of Shawn Sibley today. She, as you indicated, is the woman that introduced Amber Frey to Scott Peterson.

She started by telling the jury about the first time she met Scott Peterson at a convention at the Disneyland Hotel. She said a group went out to dinner, but she and Peterson ended up staying until 3:00 a.m. talking about a number of different subjects, both personal and professional. She said, during that conversation, Peterson indicated that he was looking for his soul mate, that he told her that he had once a soul mate, but he had lost her, and was looking for another soul mate.

She says that after being with Peterson until 3:00 a.m., she decided he was a good enough guy to set him up with her friend Amber Frey. She then detailed how, in early December, three weeks before Laci Peterson was reported missing, that she had a tip that Peterson might have been married. And she confronted him with that information. But Peterson, she said, called her back, sobbing uncontrollably, saying that, yes, he had been married, but he had lost his wife.

She testified that she asked Peterson straight out: "I don't care if you're divorced or you are a widower. Are you still married now?" to which she says Peterson said, absolutely not. She then went on to detail how Amber Frey and her were at a party one night when Amber Frey received a call that Scott Peterson was married to that missing Modesto woman. And, at that point, she says that Amber Frey contacted police and started working with the investigation.

Cross-examination from Mark Geragos very short today. His strategy seemed to be to throw out other names, unexplainable names. He kept asking Shawn Sibley, "Do you know this person?; Do you know this person?" presumably to throw out names of possible suspects to cloud jurors' minds. Whether or not that takes hold remains to be seen.

The jurors were let go today early, just a morning session. And the court will be dark until July 7, so the jurors can enjoy the Fourth of July holiday -- Fredricka.

WHITFIELD: All right, Ted Rowlands, thanks very much.

Well, interest rates are inching up. Find out how the Fed has decided to influence our economy. A Wall Street debate when CNN LIVE FROM returns.

PHILLIPS: And she has taken the love for tennis and putting it into charity. Find out what else is keeping this former tennis star so busy.

(COMMERCIAL BREAK)

WHITFIELD: Traditional ultrasounds are going 4-D. New technology is rendering images so lifelike, even a novice can interpret them. It's giving doctors new insights into the development of a fetus and new concerns as well.

CNN senior medical correspondent Dr. Sanjay Gupta takes a look.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): Only in its 12th week and this fetus appears to be taking its first steps. With new scanning techniques, doctors are finding out that reflexes like walking occur much earlier than previously thought.

STUART CAMPBELL, PROFESSOR, LONDON'S CREATE HEALTH CLINIC: This is very typical of a newborn baby. If you hold a newborn baby with the feet against a flat surface, the baby makes stepping movements, and this little fetus is...

UNIDENTIFIED MALE: It's as if he is walking up the womb.

CAMPBELL: See the step. Yes, he is making the stepping movement.

GUPTA: The new technology is called the 4-D ultrasound. It's a 3-D ultrasound with the added dimension being movement. Originally created to help identify defects, it is giving doctors a new view of what fetuses are actually up to in the womb. It makes for an emotional experience.

CAMPBELL: I think the bonding is enhanced enormously by this. If you see the reaction of the parents to these images, it is so overwhelming. I mean, I've seen mothers in tears, fathers kiss the screen, kiss their wife's abdomen. It is really quite overwhelming, this feeling of love for their child prenatally.

GUPTA: Later on at 18 weeks, this ultrasound shows the fetus can open its eyes, but it can't see anything because the womb is dark.

Doctors previously thought a baby's eyelids were fused shut until 26 weeks. And at 20 weeks, this fetus is yawning widely, but it's not breathing air, it's breathing through the placenta. And so, a whole new picture of the life of the early fetus is emerging.

These high-tech ultra sounds are available in U.S. doctor's offices and also in specialty shops popping up across the country. Some parents are shelling out $200 or more for these ultrasounds outside the doctor's office.

UNIDENTIFIED FEMALE: It is a little boy.

UNIDENTIFIED MALE: Is it really?

UNIDENTIFIED FEMALE: It is.

GUPTA: The FDA is concerned and issued a firm warning earlier this year, saying not enough is known about the long-term effects of repeatedly sending high doses of energy across a mother's womb. Doctors are also concerned that entertainment ultrasounds may give parents a false sense of security. After seeing what appears to be a healthy fetus, some parents may forego standard prenatal visits.

So if you really want a prenatal keepsake, ultrasound experts say the risks from getting just one are probably pretty low. But, first, clear it with your doctor or you can just wait a few more months and be surprised.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

(FINANCIAL UPDATE)

WHITFIELD: Well, she was one of the top female tennis stars of her day and as a teenager made history at Wimbledon. Now she's focusing on something different.

PHILLIPS: That's right. She's helping children with cancer and Fred is going to talk with her when LIVE FROM returns. There she is.

WHITFIELD: And here she is. Doesn't she look good.

PHILLIPS: No pigtails.

ANDREA JAEGER, FORMER TENNIS PRO: A little different.

WHITFIELD: I like the shaggy look.

(LAUGHTER)

(COMMERCIAL BREAK)

WHITFIELD: Well, before Venus and Serena, there was Andrea. When Andrea Jaeger turned pro at the unheard age of 14, the whole world took notice. And when she beat veteran Billie Jean King at Wimbledon back in 1983, she was on top of the world and ranked No. 2 on the planet.

A career-ending injury made her a flash on the world stage, a brief one, five years, but it was an incredible journey nonetheless. Now she is up to a different kind of service. And she has a new book out, and it's called "First Service; Following God's Calling and Finding Life's Purpose."

And she joins me now to talk about that and what's up with Wimbledon and a whole lot of other things going on in her life. Good to see you.

JAEGER: Nice to see you. Thanks for having me.

WHITFIELD: Well, no problem. We're glad you could be here.

Well, talk a little Wimbledon right now. Women's tennis is unlike anything it's been before. We're talking about powerful women's tennis, with serves of 126 miles per hour. You got any favorites out there?

JAEGER: Well, it's totally changed. The game is about power.

And the players, they are such athletes. You watch them. And I definitely would be blown off the court immediately. But Serena Williams, she's showing how she can really bring her game together for any grand slam. And her and Lindsay Davenport, they both have won grand slam titles before. And they both have the ability.

But you would think, with Serena, she's so hungry. She's been out there. She wants the grand slam titles. And it's looking like it might go her way.

WHITFIELD: And both of them advancing to the semifinals. We saw a great rivalry between Jennifer Capriati and Serena Williams. And they even talk about it being a fairly friendly rivalry. They're not best friends, but they like it that they are both hungry, too.

JAEGER: Yes, it's important because you want those rivalries. People come to watch that and the fierceness and the toughness, and it's just great to see a lot of American players doing so well.

WHITFIELD: Any interest in the current day to be involved again on the international stage, whether it's commentating or being an analyst, in some way of being involved with tennis since it's evolved so much lately, the women's game?

JAEGER: Well, I'm so thankful to tennis. It's been so good to But me. I look back at those pictures and I'm really appreciative of how God has worked with me in my life and how he's taken me from the tennis stage.

And, in a way, my injury, even though I had seven shoulder surgeries, I feel like he said, OK, I've given you that great tennis career, but now I want you to help children full time. And that's what my calling is in life.

WHITFIELD: And you're doing that with the Silver Lining Foundation, which is so extraordinary, reaching out to kids with cancer and really granting a lot of their wishes and fantasy of being able to do things that they never really thought before.

What provoked you to do that, to go from being on the court and the world stage to reaching out to so many kids?

JAEGER: It was so great, just seeing those pictures of those kids playing tennis there. That's maybe why I learned how to play tennis, is to teach some of those kids. Kevin Costner is there helping the kids fish.

And it's important. The Silver Lining Foundation was started in 1990 with Heidi Bookout and myself. And we want to bring fun, laughter and long-term support to children with cancer. And so through our Silver Lining programs and our Little Star programs, we're doing so many things for kids around the world. And it's been 14 years now.

And so the people's generosity -- John McEnroe was the first person to ever donate. And Andre Agassi has helped sponsor programs, and so has Pete Sampras. And it's been a wonderful journey to watch how we can help others. I've lived those years. I've lived my childhood. I have had those opportunities.

WHITFIELD: Yes.

JAEGER: And now it's about people coming together and feeling like they care enough to help, to donate, and we'll run the programs and help these children.

WHITFIELD: And talk about donations and talk being selfless. You talk about all these other people who have donated. But you yourself gave an awful lot of your more than million-dollar earnings to get this started. And then folks along the way decided, you know what? I am going to contribute, too, whether it was money or even land.

(CROSSTALK)

JAEGER: Yes, it's been amazing, the power of prayer. I talk about these stories in the book, where service -- they're miracles.

They're really miracles when it comes and you see a $10 million land donation coming in and a building being built. And we have the Benedict-Forstmann Silver Lining Ranch being built by Ted Forstmann and other people who have given their -- whether it's $25 or $100. And now we're looking for the $40 million endowment miracle. But it's incredible to see people.

And that's what "First Service" is about, people with caring hearts, people from Madonna, who has helped, and Cindy Crawford, Faith Hill, Tim McGraw, a lot of wonderful people that have joined together. And then there's other people that aren't as famous, but have been praying for us. Pat Thessan (ph) is a great mentor of mine and he's been praying for Heidi and I to keep going on these programs. So it's been great.

WHITFIELD: Well, everything is rooting for you, Andrea Jaeger. It's called "First Service," the new book. And we're so glad to hear your story and be able to have you here to help tell your story. And folks can read about it, too.

JAEGER: Thanks. It's great. And 100 percent of my proceeds are going to help children's charities, too. So it's kind of a double bonus if you get to buy the book. So...

WHITFIELD: Oh, fantastic. All right, nice to meet you. Thanks for dropping by.

JAEGER: Thanks for having me. See you.

(CROSSTALK)

PHILLIPS: It's good to see you, too. Thanks for the book. It's awesome.

(CROSSTALK)

(LAUGHTER)

WHITFIELD: All right, thanks a lot, Andrea.

JAEGER: Thank you.

PHILLIPS: Well, that wraps up this edition of LIVE FROM.

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 30, 2004 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Welcome back to LIVE FROM. I'm Kyra Phillips.
FREDRICKA WHITFIELD, CNN ANCHOR: And I'm Fredricka Whitfield. Here's what is happening at this hour.

The cost of borrowing money is on the way up. A short time ago, the Federal Reserve announced a quarter-point boost in a key interest rate that affects the cost of credit throughout the economy. Apparently, economists see the rate increase as an indicator the economy is strengthening.

Saddam Hussein is not longer a prisoner of war. Iraq's longtime leader, while still under guard by U.S. forces, is classified now as a criminal defendant of the new Iraq. He is expected to appear tomorrow morning, early, overnight, in fact, before an Iraqi judge.

Cameras in the courtroom for the trial of Kobe Bryant. That's what Court TV wants, citing all the in the interest in the case. The NBA star is accused of sexually assaulting a hotel employee a year ago today. His trial is set to begin August 27; $27,500 each, that's how much the 20 CBS-owned stations could be fined for showing the Super Bowl halftime show. The Federal Communications Commission has been looking into charges of indecency in connection with the program -- Kyra.

PHILLIPS: Saddam Hussein is a step closer to being tried by the nation he ruled and some say terrorized. Today, the coalition handed over legal custody to Iraq.

CNN's Brent Sadler filed this report from Baghdad.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): He's been forced to take the first step on a long road to justice, no longer a prisoner of war, subject instead to Iraq's own penal code.

Justice is being seen to be done in Iraqi homes once starved of uncensored news. Their former president faces a possible death penalty for 35 years of merciless rule. This is the old Saddam, bestowing rewards on loyal acolytes, a far cry from his latest appearance, where he wanted to ask questions, a request denied. His upcoming trial months away has set off passionate debate here.

Ibraham Saad (ph), a shopkeeper, claims Saddam killed his sons and let his family starve. Ibraham rages: "He left us with nothing but our underwear. May he be cursed in this world and the next."

But with the anonymity of radio, Iraqi opinion may not be so clear-cut. A popular radio station here took a straw poll of listeners during a one hour phone-in. It concluded that while just over 45 percent supported the death sentence for Saddam, a stunning 41 percent thought he should be released.

(on camera): The legal fate of 11 of Saddam Hussein's top officials was also transferred to Iraqi control, although they'll all remain locked up in an American-run jail.

(voice-over): Tariq Aziz, one of the best known faces of the old region, was also transferred to Iraqi custody, along with Ali Hassan al-Majid, known as Chemical Ali for his alleged role in using chemical weapons, said to be visibly shaking.

The deposed leadership is expected to face charges of crimes against humanity, including genocide.

"Saddam deserves a slow death, slower than slow," says Ahmed Shinjah (ph), a restaurateur, "in the way he made innocent people suffer."

Iraq is demonstrating freedom of expression, after liberation from Saddam Hussein and his handover to the new Iraqi government.

Brent Sadler, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: As just about everyone expected, the guerrilla violence continued despite the return self-rule. Today, insurgents fired at least 10 mortar rounds at a U.S. military base outside Baghdad International Airport; 11 American soldiers were wounded, two of them seriously. One round hit a petroleum products yard, setting off a fire that burned for more than an hour.

The Iraqi flag is now waving above the Iraqi Embassy in Washington. It was raised at a ceremony today marking the return of Iraqi sovereignty.

WHITFIELD: An afternoon shoot-out in Riyadh, Saudi Arabia, leaving what are believed to be al Qaeda militants dead.

Our Nic Robertson joins us now via video link from Riyadh -- Nic.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Well, Fredricka, sources here are telling us that not only was this man a leading member of al Qaeda leader in Saudi Arabia, he is what is described as their chief ideologue, the man behind the religious justification for the killing of Western expatriate workers here in Saudi Arabia.

According to sources, police began following him sometime earlier in the day, chased him to a neighborhood about seven kilometers, about four miles from where we are now, still very much in Riyadh, the capital of Saudi Arabia, surrounded the building he was in. The firefight began. He was killed. We're told the operation is still ongoing. We've also been told that one police officer has been killed, six policemen lightly wounded and three passersby also caught in the crossfire lightly wounded as well.

And the sources have told us that they have already -- police have already recovered a large amount of explosives and weapons from this particular building. They say that the killing of this man is very important, because he was, as they call him, the chief ideologue of al Qaeda in Saudi Arabia -- Fredricka.

WHITFIELD: And, Nic, can you give us a sense of what happened just preceding the shoot-out?

ROBERTSON: The details are still not entirely clear. But what we have been told is that police somehow, and we don't know exactly how, recognized that he was in one part of the city, picked him up, if you will, tailed him, followed him to this other neighborhood. Then, when he went into this particular building, that is when the operation began, about mid-afternoon Riyadh time, that's about six or seven hours ago, surrounded the building that he was in and the firefight ensued after that, Fredricka.

WHITFIELD: All right, Nic Robertson, thanks very much for that report from Riyadh, Saudi Arabia -- Kyra.

PHILLIPS: As predicted, the Federal Reserve last hour raised a key interest by a quarter of percentage point. After years of cheap borrowing, is the party over for good?

CNN's Ceci Rodgers takes a look for us.

(BEGIN VIDEOTAPE)

CECI RODGERS, CNN CORRESPONDENT (voice over): It had to end sometime. Easy money that opened the flood gates for multiple refinancing and zero percent car loans had to end. Interest rates have already been creeping up as the market anticipates a Federal Reserve rate hike.

Do you think that the Federal Reserve will raise interest rates?

UNIDENTIFIED MALE: I think so, yes. It's going to affect a lot of people.

UNIDENTIFIED FEMALE: Well, I'm just trying to pay off debt and deal with things now as opposed to increasing my debt as the rates get higher.

RODGERS: Financial planners are urging their clients to do just that. Credit card debt can be treacherous for consumers as the interest rate rises in lock step with market rates. For the same reason, adjustable rate mortgages may be a riskier choice for homeowners now that interest rates have turned up.

MARC FREEDMAN, FREEDMAN FINANCIAL: Those that have adjustable interest rates, I would say now is the time to turn those into fixed interest rates. There's no need for adjustable interest rates any more or adjustable rate mortgages as we approach a rise in interest rate environment.

RODGERS: Economists predict a doubling of the Federal Funds Rate to 2 percent by year end. That's a huge jump in percentage terms. But economists say in real terms, it isn't because rates are rising from such low levels.

DIANE SWONK, BANK ONE: We're not going to see the kind of interest rates that we saw in the 1980s. We're going to see rates that we've more come accustomed to in the last five to 10 years. I mean, we're returning to more reasonable leveling of rates.

RODGERS: Investors may have a hard time deciding which investment will fair better as rates rise, since a lot hinges on whether inflation become as bigger problem. But there seems to be a consensus on what investors should avoid.

FREEDMAN: Long-term bonds may be ones that are worth selling right now, taking the profit margin you've earned on those bonds and reallocating them either into the stock market or simply into cash.

RODGERS (on camera): Higher interest rates do have a silver lining, they'll eventually show up on the interest paid on money market funds and certificates of deposit, investments that were once popular with small investors until rock bottom interest rates cut their returns to next to nothing.

Ceci Rodgers, CNN financial news, Chicago.

(END VIDEOTAPE)

PHILLIPS: Other news across America now.

He's back, radio shock jock Howard Stern returning to the air in four markets where his syndicated morning show was dropped. Months after being dumped by Clear Channel, Stern's show is being picked up by rival Infinity Broadcasting, which syndicates Stern's show. Infinity is also adding Stern's show to five new markets.

Recouping the costs, the Boy Scouts of America being sued for close to $14 million for a devastating fire set at a scout camp in 2002. Both the federal government and state of Utah are trying recover costs of fighting that blaze. The Boy Scouts has not admitted responsibility for the fire.

And a California boy who tried to shimmy down a chimney learned that gravity doesn't always do the trick. The 11-year-old boy got stuck halfway down the chimney at his friend's house yesterday. After several attempts, firefighters finally pulled him out.

A woman who introduced Scott Peterson to his mistress testified today in his double murder trial.

CNN's Ted Rowlands is following the case in Redwood City and joins us -- Ted.

TED ROWLANDS, CNN CORRESPONDENT: Fredricka, the jury listened very intently to the testimony of Shawn Sibley today. She, as you indicated, is the woman that introduced Amber Frey to Scott Peterson.

She started by telling the jury about the first time she met Scott Peterson at a convention at the Disneyland Hotel. She said a group went out to dinner, but she and Peterson ended up staying until 3:00 a.m. talking about a number of different subjects, both personal and professional. She said, during that conversation, Peterson indicated that he was looking for his soul mate, that he told her that he had once a soul mate, but he had lost her, and was looking for another soul mate.

She says that after being with Peterson until 3:00 a.m., she decided he was a good enough guy to set him up with her friend Amber Frey. She then detailed how, in early December, three weeks before Laci Peterson was reported missing, that she had a tip that Peterson might have been married. And she confronted him with that information. But Peterson, she said, called her back, sobbing uncontrollably, saying that, yes, he had been married, but he had lost his wife.

She testified that she asked Peterson straight out: "I don't care if you're divorced or you are a widower. Are you still married now?" to which she says Peterson said, absolutely not. She then went on to detail how Amber Frey and her were at a party one night when Amber Frey received a call that Scott Peterson was married to that missing Modesto woman. And, at that point, she says that Amber Frey contacted police and started working with the investigation.

Cross-examination from Mark Geragos very short today. His strategy seemed to be to throw out other names, unexplainable names. He kept asking Shawn Sibley, "Do you know this person?; Do you know this person?" presumably to throw out names of possible suspects to cloud jurors' minds. Whether or not that takes hold remains to be seen.

The jurors were let go today early, just a morning session. And the court will be dark until July 7, so the jurors can enjoy the Fourth of July holiday -- Fredricka.

WHITFIELD: All right, Ted Rowlands, thanks very much.

Well, interest rates are inching up. Find out how the Fed has decided to influence our economy. A Wall Street debate when CNN LIVE FROM returns.

PHILLIPS: And she has taken the love for tennis and putting it into charity. Find out what else is keeping this former tennis star so busy.

(COMMERCIAL BREAK)

WHITFIELD: Traditional ultrasounds are going 4-D. New technology is rendering images so lifelike, even a novice can interpret them. It's giving doctors new insights into the development of a fetus and new concerns as well.

CNN senior medical correspondent Dr. Sanjay Gupta takes a look.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): Only in its 12th week and this fetus appears to be taking its first steps. With new scanning techniques, doctors are finding out that reflexes like walking occur much earlier than previously thought.

STUART CAMPBELL, PROFESSOR, LONDON'S CREATE HEALTH CLINIC: This is very typical of a newborn baby. If you hold a newborn baby with the feet against a flat surface, the baby makes stepping movements, and this little fetus is...

UNIDENTIFIED MALE: It's as if he is walking up the womb.

CAMPBELL: See the step. Yes, he is making the stepping movement.

GUPTA: The new technology is called the 4-D ultrasound. It's a 3-D ultrasound with the added dimension being movement. Originally created to help identify defects, it is giving doctors a new view of what fetuses are actually up to in the womb. It makes for an emotional experience.

CAMPBELL: I think the bonding is enhanced enormously by this. If you see the reaction of the parents to these images, it is so overwhelming. I mean, I've seen mothers in tears, fathers kiss the screen, kiss their wife's abdomen. It is really quite overwhelming, this feeling of love for their child prenatally.

GUPTA: Later on at 18 weeks, this ultrasound shows the fetus can open its eyes, but it can't see anything because the womb is dark.

Doctors previously thought a baby's eyelids were fused shut until 26 weeks. And at 20 weeks, this fetus is yawning widely, but it's not breathing air, it's breathing through the placenta. And so, a whole new picture of the life of the early fetus is emerging.

These high-tech ultra sounds are available in U.S. doctor's offices and also in specialty shops popping up across the country. Some parents are shelling out $200 or more for these ultrasounds outside the doctor's office.

UNIDENTIFIED FEMALE: It is a little boy.

UNIDENTIFIED MALE: Is it really?

UNIDENTIFIED FEMALE: It is.

GUPTA: The FDA is concerned and issued a firm warning earlier this year, saying not enough is known about the long-term effects of repeatedly sending high doses of energy across a mother's womb. Doctors are also concerned that entertainment ultrasounds may give parents a false sense of security. After seeing what appears to be a healthy fetus, some parents may forego standard prenatal visits.

So if you really want a prenatal keepsake, ultrasound experts say the risks from getting just one are probably pretty low. But, first, clear it with your doctor or you can just wait a few more months and be surprised.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

(FINANCIAL UPDATE)

WHITFIELD: Well, she was one of the top female tennis stars of her day and as a teenager made history at Wimbledon. Now she's focusing on something different.

PHILLIPS: That's right. She's helping children with cancer and Fred is going to talk with her when LIVE FROM returns. There she is.

WHITFIELD: And here she is. Doesn't she look good.

PHILLIPS: No pigtails.

ANDREA JAEGER, FORMER TENNIS PRO: A little different.

WHITFIELD: I like the shaggy look.

(LAUGHTER)

(COMMERCIAL BREAK)

WHITFIELD: Well, before Venus and Serena, there was Andrea. When Andrea Jaeger turned pro at the unheard age of 14, the whole world took notice. And when she beat veteran Billie Jean King at Wimbledon back in 1983, she was on top of the world and ranked No. 2 on the planet.

A career-ending injury made her a flash on the world stage, a brief one, five years, but it was an incredible journey nonetheless. Now she is up to a different kind of service. And she has a new book out, and it's called "First Service; Following God's Calling and Finding Life's Purpose."

And she joins me now to talk about that and what's up with Wimbledon and a whole lot of other things going on in her life. Good to see you.

JAEGER: Nice to see you. Thanks for having me.

WHITFIELD: Well, no problem. We're glad you could be here.

Well, talk a little Wimbledon right now. Women's tennis is unlike anything it's been before. We're talking about powerful women's tennis, with serves of 126 miles per hour. You got any favorites out there?

JAEGER: Well, it's totally changed. The game is about power.

And the players, they are such athletes. You watch them. And I definitely would be blown off the court immediately. But Serena Williams, she's showing how she can really bring her game together for any grand slam. And her and Lindsay Davenport, they both have won grand slam titles before. And they both have the ability.

But you would think, with Serena, she's so hungry. She's been out there. She wants the grand slam titles. And it's looking like it might go her way.

WHITFIELD: And both of them advancing to the semifinals. We saw a great rivalry between Jennifer Capriati and Serena Williams. And they even talk about it being a fairly friendly rivalry. They're not best friends, but they like it that they are both hungry, too.

JAEGER: Yes, it's important because you want those rivalries. People come to watch that and the fierceness and the toughness, and it's just great to see a lot of American players doing so well.

WHITFIELD: Any interest in the current day to be involved again on the international stage, whether it's commentating or being an analyst, in some way of being involved with tennis since it's evolved so much lately, the women's game?

JAEGER: Well, I'm so thankful to tennis. It's been so good to But me. I look back at those pictures and I'm really appreciative of how God has worked with me in my life and how he's taken me from the tennis stage.

And, in a way, my injury, even though I had seven shoulder surgeries, I feel like he said, OK, I've given you that great tennis career, but now I want you to help children full time. And that's what my calling is in life.

WHITFIELD: And you're doing that with the Silver Lining Foundation, which is so extraordinary, reaching out to kids with cancer and really granting a lot of their wishes and fantasy of being able to do things that they never really thought before.

What provoked you to do that, to go from being on the court and the world stage to reaching out to so many kids?

JAEGER: It was so great, just seeing those pictures of those kids playing tennis there. That's maybe why I learned how to play tennis, is to teach some of those kids. Kevin Costner is there helping the kids fish.

And it's important. The Silver Lining Foundation was started in 1990 with Heidi Bookout and myself. And we want to bring fun, laughter and long-term support to children with cancer. And so through our Silver Lining programs and our Little Star programs, we're doing so many things for kids around the world. And it's been 14 years now.

And so the people's generosity -- John McEnroe was the first person to ever donate. And Andre Agassi has helped sponsor programs, and so has Pete Sampras. And it's been a wonderful journey to watch how we can help others. I've lived those years. I've lived my childhood. I have had those opportunities.

WHITFIELD: Yes.

JAEGER: And now it's about people coming together and feeling like they care enough to help, to donate, and we'll run the programs and help these children.

WHITFIELD: And talk about donations and talk being selfless. You talk about all these other people who have donated. But you yourself gave an awful lot of your more than million-dollar earnings to get this started. And then folks along the way decided, you know what? I am going to contribute, too, whether it was money or even land.

(CROSSTALK)

JAEGER: Yes, it's been amazing, the power of prayer. I talk about these stories in the book, where service -- they're miracles.

They're really miracles when it comes and you see a $10 million land donation coming in and a building being built. And we have the Benedict-Forstmann Silver Lining Ranch being built by Ted Forstmann and other people who have given their -- whether it's $25 or $100. And now we're looking for the $40 million endowment miracle. But it's incredible to see people.

And that's what "First Service" is about, people with caring hearts, people from Madonna, who has helped, and Cindy Crawford, Faith Hill, Tim McGraw, a lot of wonderful people that have joined together. And then there's other people that aren't as famous, but have been praying for us. Pat Thessan (ph) is a great mentor of mine and he's been praying for Heidi and I to keep going on these programs. So it's been great.

WHITFIELD: Well, everything is rooting for you, Andrea Jaeger. It's called "First Service," the new book. And we're so glad to hear your story and be able to have you here to help tell your story. And folks can read about it, too.

JAEGER: Thanks. It's great. And 100 percent of my proceeds are going to help children's charities, too. So it's kind of a double bonus if you get to buy the book. So...

WHITFIELD: Oh, fantastic. All right, nice to meet you. Thanks for dropping by.

JAEGER: Thanks for having me. See you.

(CROSSTALK)

PHILLIPS: It's good to see you, too. Thanks for the book. It's awesome.

(CROSSTALK)

(LAUGHTER)

WHITFIELD: All right, thanks a lot, Andrea.

JAEGER: Thank you.

PHILLIPS: Well, that wraps up this edition of LIVE FROM.

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