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Another Juror Dismissed in Scott Peterson Trial; Update on Yasser Arafat's Health; Fed Raises Interest Rate Quarter of a Point

Aired November 10, 2004 - 14:00   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.


TONY HARRIS, CNN ANCHOR: Hello. And welcome back, everyone, to the second hour of LIVE FROM. Tony Harris and Betty Nguyen, and we are following all kinds of developments in Redwood City, California, as another juror in the Scott Peterson murder trial has been dismissed. By my count, we have three jurors that have been dismissed in the this trial.
We are covering this from a number of different angles. Jeffrey Toobin, our CNN legal analyst, is on the phone with us; Rusty Dornin is in Redwood City, California; and David Mattingly is also joining us with coverage of this case.

Let's start with Rusty Dornin.

Rusty, once again, give us a reset of where we are right now, and then I have a couple of questions for you.

RUSTY DORNIN, CNN CORRESPONDENT: OK. Well, juror number five, who was elected foreman of this jury when they went into deliberations last week, a doctor, a lawyer, he has been excused for some undisclosed reason from this jury. He's being replaced by alternate number three, another man in his 50s, who's retired, whose son-in-law worked for Scott Peterson in San Luis Obispo and actually bought a restaurant that Scott and Laci Peterson owned in San Luis Obispo.

Apparently the man, during jury selection, said his son-in-law did not work for Peterson very long, didn't know him very well. The alternate himself did not know Scott Peterson at all.

They've elected a new foreman. That is juror number six.

He is a firefighter in his 20s. He was noticeable during the trial because he didn't take any notes or very few notes. He appeared bored at times.

He also was apparently very good friends with the very first juror dismissed from the case, Justin Falconer, who's of course been talking a lot about this trial. But that firefighter was very good friends with him.

So that's the scorecard now. The jury is back to their deliberations. Mark Geragos looking very happy, apparently, and also had his arm around Scott Peterson as they left the court.

HARRIS: OK, Rusty, that's the point I want to pick up on. We understand that Geragos is hugging Scott Peterson, and that's going on.

Give me a sense -- we spent the last hour talking about the legalese of this and kind of the movings here and there. But give me a sense of what Laci Peterson's family has been going through as this process has unfolded? Have you been able to sort of peek in on their ever-changing emotions as this process is played out?

DORNIN: They have been maintaing a very low profile. They have been around the courthouse area, but have not come into the courtroom.

On the other hand, Scott Peterson's family has come into the courtroom a couple of times for these announcements. But Laci Peterson's family has not.

You can only imagine the kind of agony that they are going through as all of these things happen. They know these things are probably not great for the prosecution, all these jurors being dismissed, and the possibility of a mistrial, of course. And hearing about the battles that these jurors are having has got to be upsetting to them.

HARRIS: OK.

And David Mattingly, have you been able to get a sense or maybe you saw some reaction to this latest development on the part of the prosecution? Did you? And you can share what you saw with us?

DAVID MATTINGLY, CNN CORRESPONDENT: The prosecution had polite smiles on their faces the entire time they were within the public eye there in the courtroom. Remember, they were in closed-door meetings with the judge and the defense attorneys for almost an entire hour before they came out. But again, everyone coming out very business- like, very relaxed, seeming, and with polite smiles on their face.

The strongest reaction we saw in the courtroom was from one of the jurors who mouthed the words, "Oh, man," indicating some sense of surprise after two days in a row and two jurors being dismissed from this jury.

HARRIS: OK, David.

And Betty, you've got a couple questions?

BETTY NGUYEN, CNN ANCHOR: Yes. We want to bring in legal analyst Jeffrey Toobin to talk about all of this as well.

Jeffrey, I think the question that really struck me was this alternate that's replacing juror number five. That alternate's son- in-law worked with Scott Peterson. They're allowing him to stay on this jury, but is that going to be a major issue here?

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: I don't think that's a major issue, because that -- the fact of his peculiar distant relationship to Scott Peterson was fully aired during jury selection. So the defense and prosecution both had the chance to strike him if they wanted to. Both passed up that opportunity, so I think that is a non-issue if the case against -- as the case goes forward as a legal matter. It's certainly strange, like a lot of things in this case.

NGUYEN: Yes, very -- well, yes. Many things have been strange in this case.

TOOBIN: But it's not -- it will not lead to any sort of appellate proceedings of any kind.

NGUYEN: All right. Well, Rusty Dornin had spoken about Mark geragos putting his arm around Peterson once this juror number five was dismissed. This bodes well for the prosecution, you say.

TOOBIN: Well...

NGUYEN: I'm sorry, the defense?

TOOBIN: I'm not sure. You know, Mark Geragos is an accomplished television performer, and I don't say that in a hostile way. I mean, he knows he's being watched and he may be putting on a brave face.

I think it is to the prosecution's advantage that troublesome jurors are gotten rid of, and the deliberations continue. A hung jury is certainly bad for the prosecution.

But Geragos may be sending the message, and which he may even believe, that the makeup of the jury is moving more toward a group of people that he's more comfortable with. As I said earlier, over the course of a long trial, you get a sense of juror sympathies by watching their reaction. Geragos may believe that troublesome jurors are disappearing and good jurors for him are getting on the jury.

NGUYEN: All right. Legal analyst Jeffrey Toobin, we thank you for your time and your information today. We'll obviously be checking back with you throughout the day. Thanks, Jeff.

HARRIS: OK. I wanted to take a moment and bring Rusty Dornin back in.

Rusty, you've got some thoughts?

DORNIN: Well, I actually had a question for Jeffrey because...

HARRIS: Did we lose him? Let me find out if we lost him.

Jeffrey, are you still there?

NGUYEN: He's gone.

He's gone? Oh, he's gone. Sorry, Rusty.

DORNIN: Well, it's the next question to be answered. But the first juror to be dismissed in this case, Justin Falconer, he was dismissed last June. He's still talking about this jury.

HARRIS: That's right, yes.

DORNIN: Now, the last two jurors that are being dismissed we're told are under a gag order. We do know that there are some media attorneys that are trying to fight that, saying that is not legal, they should also be able to talk about some aspects of this case. I just wanted to see what Jeffrey thought about that.

HARRIS: Well, remind us of this Justin Falconer character. As I recall, he had some very strong opinions about this case. And you wonder, in light of everything that's going on, if perhaps some of those views were shared by other members of this jury?

DORNIN: Well, you have to wonder. But, you know, he -- again, he was only on the jury for four weeks. He did not go through all of the evidence. Certainly he knows the folks on the jury better than any of us do or any of the legal analysts, but as far as the other evidence the jury has seen, how perhaps people have change their minds, you know, he's not privy to that.

HARRIS: OK. All right, Rusty.

Betty, you have thoughts for David?

NGUYEN: Actually, I believe we're going to go on the phone to jury consultant Sonia Chopra.

Are you there?

Do we have her?

SONIA CHOPRA, NATIONAL JURY PROJECT: Hello?

NGUYEN: Hi there.

CHOPRA: Hi.

NGUYEN: I wanted to ask you a little bit about this jury, especially in light of all that's just happened. Rusty had mentioned that -- and also David Mattingly had mentioned that when this jury was told of the dismissal, many of them were shocked. Is this someone that perhaps may have been someone who may have been able to see this, some foresight into this happening, especially with the background of juror number five being an attorney and a doctor?

CHOPRA: Yes, I think it's interesting. I think that the background of this juror would lead anybody to think that he is definitely going to probably be foreperson material, is going to be a leader within the jury.

I think it's interesting that the other jurors didn't seem to know that this was coming, which does lend some support to the idea that this was personal, that he asked to be removed. It doesn't seem like from the other jurors' reaction that there was really dissent around this juror.

NGUYEN: Yes. One juror even seemed a little surprised about that.

And then now the juror foreman, the one that is replacing number five, who used to be the foreman, juror number six, we are told by Rusty Dornin that this person has not been too involved to paying attention to the proceedings. Why would that person be chosen as the foreman?

CHOPRA: Well, it could be, you know, a lot of times you can't read too much into how much people take notes and what you think they're processing because different people process information differently. And sometimes, you know, it's not the person who has the most information that's elected foreperson, but it's somebody who everybody gets along with and who can kind of create cohesion within the group.

So it could be just his personality that -- excuse me -- the other jurors liked -- excuse me -- but, you know, personality-wise, he could be the type of guy who can bring everybody together or let's everybody talk, or who brings out the quiet jurors, that sort of thing.

NGUYEN: And that's the key right now for this foreman, especially in light of all that's happened to bring this jury together and try to get some kind of a verdict despite all that has occurred?

CHOPRA: Absolutely.

NGUYEN: OK. It could be a tough job.

CHOPRA: Yes, it looks like it.

NGUYEN: All right. Sonia Chopra, jury consultant, we thank you for your time today.

CHOPRA: OK, bye.

NGUYEN: Tony.

HARRIS: Busy, busy afternoon. All right. We're going to take a quick break, and we'll come back with an update on the health of Yasser Arafat.

This is LIVE FROM.

(COMMERCIAL BREAK)

HARRIS: From Ramallah to Paris, Palestinians are bracing for the death of Yasser Arafat, which could be just hours away. CNN's Fionnuala Sweeney is outside the hospital in Paris where the Palestinian leader remains gravely ill -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Indeed, Tony. Yasser Arafat lying in critical condition, in an even deeper coma than the one he first subsumed to a week ago. Nabil Sha'ath, the Palestinian foreign minister, saying a short time ago that his heart and lungs were still functioning, but his brain was only partially functioning. That's because of the brain hemorrhage he suffered two days ago.

(BEGIN VIDEO CLIP)

NABIL SHA'ATH, PALESTINIAN FOREIGN MINISTER: Mr. Arafat's status has not changed. Yesterday, in Paris, I said that his heart's still working, his lungs are still working, and at least part of his brain is still working because of the hemorrhage he has suffered. Everything else is not functioning well.

(END VIDEO CLIP)

SWEENEY: Earlier today, the chief cleric, Muslim cleric from Gaza in the West Bank, came here to Paris. He spent an hour and a half by Yasser Arafat's bedside. Shaikh Tasir al-Tammimi (ph) speaking to journalists afterwards, saying that the question of euthanasia hat been ruled out.

It not only goes against Islamic law, but he also said as long as Yasser Arafat continued to function, there was still sign of life in his body, he would be allowed to remain alive. There would be no question of switching off any life support machine.

Here, outside the hospital, the vigil continues. About 100 Palestinian supporters and well-wishers of Yasser Arafat gathered outside this hospital, as they have been for a week or so now, Tony, since the news that Yasser Arafat had suffered a coma first began to emerge.

HARRIS: And Fionnuala, there is real significance to the visit from the clerics. Why don't you talk us through that.

SWEENEY: Well, the reason the cleric has been sent from the West Bank and Gaza is primarily to dispel this notion that there is any question of his life support system being switched off. He is on a respirator as we speak, but it's also to ensure that all Muslim traditions are kept are and are seen to be put into practice.

It won't be only just the French doctors who declare Yasser Arafat dead, should that happen. It will also be the final word from the chief Muslim cleric, and a judge as well, we understand.

He spent an hour and a half, as I said, earlier reciting verses from the Koran by Yasser Arafat's bedside, reportedly seeing one of Yasser Arafat shoulders move. A further indication in his view that Yasser Arafat is well and truly alive.

HARRIS: Fionnuala Sweeney reporting live for us. Fionnuala, thank you.

And as we speak, plans are in the works for a final farewell to Yasser Arafat. A bit later, we'll talk details with our senior editor for Arab affairs, Octavia Nasr -- Betty.

NGUYEN: We are waiting a decision from the Federal Reserve on another possible interest rate hike. And CNN's Chris Huntington is standing by in New York with the latest on this as we await that decision.

Hi there.

CHRIS HUNTINGTON, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Betty.

Well, indeed, all of Wall Street expects the Fed to raise its target on its so-called federal funds rate to 2 percent, up from 1.75 percent. That announcement expected within the next couple of minutes.

The Dow industrials right now are trading a little bit higher ahead of that announcement, up about 20 points. This, if it comes, would be the fourth rate hike since June. Federal Reserve Board chairman Alan Greenspan signaled back then if the Fed...

NGUYEN: Chris, let me jump in just really quickly. It has raised a quarter of a point, we're being told.

HUNTINGTON: Yes, there we go. I'm seeing that, too.

And now, of course, the game becomes what will the Fed do from now on? And there is a statement that will accompany this move. It's not just available yet. But that will be carefully parsed by all of the economists on Wall Street to see -- and if you're familiar with the way that Alan Greenspan speaks, he's almost rarely, rarely tips his hand.

But we are told that the statement right now is basically the same as it was before, which is that the Fed does not see inflation as a huge problem. Inflation right now, if you look at the Consumer Price Index, and particularly what's called the Core Consumer Price Index, only about 2 percent. The Fed pretty much signaling right now that it is not going to change its view of the economy a whole lot.

Now, the Fed Open Market Committee, this is the group of folks led by Alan Greenspan that adjusts interest rates, will be meeting again in middle in mid-December. And Wall Street right now is sort of split, Betty, as to whether or not that will bring another interest rate hike.

NGUYEN: All right. Every time we hear of an interest rate hike, people at home, consumers, people like you and me, want to know how does that affect us, and how long before the hike is factored in?

HUNTINGTON: Sure. Well, I bet you could probably look at the window right now and see some of the banks in your neighborhood raising their prime rates. The prime rate has been at 4.75, it's almost certain to go to 5 percent starting -- and that just becomes sort of a ripple effect throughout the banking community, really starting this afternoon.

There are many, many consumer rates that are set off the prime: credit card rates and auto loans, and so forth. But the most important rate that everybody really worries about are mortgage rates.

NGUYEN: Of course. HUNTINGTON: And oddly enough, those are not necessarily triggered directly by a raise in the Fed funds rate. Those are generally more pegged to what's going on in the 10-year treasury note. And interestingly, even though the Fed has raised its short-term rates in the last couple of months, longer-term rates and particularly mortgage rates have come down a bit. That's essentially the market saying, well, we like the fact that the Fed wants to put a blanket on inflation now so it's not a problem later on.

NGUYEN: All right. Chris Huntington, we appreciate that insight and report today.

And stay tuned for more CNN LIVE FROM.

(COMMERCIAL BREAK)

HARRIS: White House counsel Alberto Gonzales is expected to be President Bush's nominee to replace outgoing Attorney General John Ashcroft. And we are expecting that announcement to come a little later this afternoon.

Alberto Gonzales is a full-fledged member of President Bush's Texas connection. And joining us now from Austin, Paul Burka, senior executive editor of the magazine "Texas Monthly."

Paul, good to see you.

PAUL BURKA, "TEXAS MONTHLY": Thank you.

HARRIS: Thanks for taking the time to talk to us. Explain to us just how close this connection is between Mr. Gonzalez and the president.

BURKA: Well, it goes back to when Governor Bush was in the governor's mansion here and Alberto Gonzales was his general counsel. And then the governor, then-Governor Bush, appointed Mr. Gonzales to the Texas Supreme Court.

So he has tremendous loyalty from Mr. Gonzales. And I think that's the hallmark of this appointment, that John ashcroft often went out freelancing on his own and created some problems for the president. You won't see that from Alberto Gonzales.

HARRIS: OK. So who is he? I've heard that he's a moderate Republican, a moderate on social issues. Give us a sense of his tone, his temperament.

BURKA: Well, I think he's a very careful lawyer. He was a lawyer at one of the state's outstanding law firms, really one of the nation's, Vincent and Elkins. That was John Connelly's (ph) law firm at one time. It is also, by the way, Enron's old law firm, although Mr. Gonzales was in the governor's office then.

So he has a good legal background. When he was on the Supreme Court, he was only there for a little over a year. But there was a very important abortion opinion in which he took a moderate view. This involved parental notification and minors' rights. And the conservatives and the moderates, all of whom were Republicans, accused each other of legislating. But he wrote the majority opinion.

HARRIS: I see. OK. Give us a sense of -- I'm sure that issue will come up in the confirmation hearings. Anything else on the radar that might come up, maybe his take on these so-called terror memos and his calling at one point in one of the letters the Geneva Conventions quaint?

BURKA: Quaint, oh, yes.

HARRIS: Yes.

BURKA: I'm sure he would like to take that word back. I'm sure that will come up, but it would probably be much more of an issue if Mr. Gonzales were being nominated to the Supreme Court. So I don't think that's really going to be much of an issue, and I can't imagine that the Democrats are going to put much opposition into this.

Mr. Gonzalez has a very good record. Now, there was something when Bush was governor. He was called to jury duty, and Mr. Gonzales got him out of jury duty because he might have been asked about his own personal history arrest record and, of course, there was that DUI up in Maine that had not surfaced at that time.

And so Mr. Gonzales was able to get him out of jury duty. That might be - come up, too.

HARRIS: Do you anticipate -- I guess the Patriot Act comes up for reauthorization in the next few years. Do you expect him to move forward as aggressively in that reauthorization process and view it the same way as John Ashcroft has viewed it, or do you expect it to be modified or changed in any way?

BURKA: Well, I don't think there are many people in America who view it the same way as John Ashcroft viewed it.

HARRIS: Yes.

BURKA: But I would expect him to be more moderate than that. But again, I think you're going to see Mr. Gonzales reflect the White House wishes in issues like that.

HARRIS: And are we going to see other sort of inner circle Texas Bush friends in this second term?

BURKA: I'd keep an eye on Joe Albaugh. I know that the White House is not satisfied with the performance of homeland security.

Albaugh was director of the Federal Emergency Management Agency for two years. Then he went out in private business.

He was the -- again, he is a 100-percent Bush loyalist, exactly like Alberto Gonzales. That agency needs fixing. Joe Albaugh was chief of staff for the campaign in 2000, and Joe Albaugh is the kind of person who can go over there and kick some tails and get it fixed.

HARRIS: Paul Burka, senior executive of the magazine "Texas Monthly," thanks for taking the time to talk to us. We appreciate it. Thank you -- Betty.

NGUYEN: Well, as you've seen here, it's been a busy news day. And we will check the top stories as we approach the half-hour. That is next.

Plus, why Yasser Arafat's state funeral won't be in the Palestinian territories.

And look who is back in the news. The man once known as Cat Stevens gets a special award.

Plus, the comeback kid on what the Democrats have to do to get back in the game.

(COMMERCIAL BREAK)

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Aired November 10, 2004 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Hello. And welcome back, everyone, to the second hour of LIVE FROM. Tony Harris and Betty Nguyen, and we are following all kinds of developments in Redwood City, California, as another juror in the Scott Peterson murder trial has been dismissed. By my count, we have three jurors that have been dismissed in the this trial.
We are covering this from a number of different angles. Jeffrey Toobin, our CNN legal analyst, is on the phone with us; Rusty Dornin is in Redwood City, California; and David Mattingly is also joining us with coverage of this case.

Let's start with Rusty Dornin.

Rusty, once again, give us a reset of where we are right now, and then I have a couple of questions for you.

RUSTY DORNIN, CNN CORRESPONDENT: OK. Well, juror number five, who was elected foreman of this jury when they went into deliberations last week, a doctor, a lawyer, he has been excused for some undisclosed reason from this jury. He's being replaced by alternate number three, another man in his 50s, who's retired, whose son-in-law worked for Scott Peterson in San Luis Obispo and actually bought a restaurant that Scott and Laci Peterson owned in San Luis Obispo.

Apparently the man, during jury selection, said his son-in-law did not work for Peterson very long, didn't know him very well. The alternate himself did not know Scott Peterson at all.

They've elected a new foreman. That is juror number six.

He is a firefighter in his 20s. He was noticeable during the trial because he didn't take any notes or very few notes. He appeared bored at times.

He also was apparently very good friends with the very first juror dismissed from the case, Justin Falconer, who's of course been talking a lot about this trial. But that firefighter was very good friends with him.

So that's the scorecard now. The jury is back to their deliberations. Mark Geragos looking very happy, apparently, and also had his arm around Scott Peterson as they left the court.

HARRIS: OK, Rusty, that's the point I want to pick up on. We understand that Geragos is hugging Scott Peterson, and that's going on.

Give me a sense -- we spent the last hour talking about the legalese of this and kind of the movings here and there. But give me a sense of what Laci Peterson's family has been going through as this process has unfolded? Have you been able to sort of peek in on their ever-changing emotions as this process is played out?

DORNIN: They have been maintaing a very low profile. They have been around the courthouse area, but have not come into the courtroom.

On the other hand, Scott Peterson's family has come into the courtroom a couple of times for these announcements. But Laci Peterson's family has not.

You can only imagine the kind of agony that they are going through as all of these things happen. They know these things are probably not great for the prosecution, all these jurors being dismissed, and the possibility of a mistrial, of course. And hearing about the battles that these jurors are having has got to be upsetting to them.

HARRIS: OK.

And David Mattingly, have you been able to get a sense or maybe you saw some reaction to this latest development on the part of the prosecution? Did you? And you can share what you saw with us?

DAVID MATTINGLY, CNN CORRESPONDENT: The prosecution had polite smiles on their faces the entire time they were within the public eye there in the courtroom. Remember, they were in closed-door meetings with the judge and the defense attorneys for almost an entire hour before they came out. But again, everyone coming out very business- like, very relaxed, seeming, and with polite smiles on their face.

The strongest reaction we saw in the courtroom was from one of the jurors who mouthed the words, "Oh, man," indicating some sense of surprise after two days in a row and two jurors being dismissed from this jury.

HARRIS: OK, David.

And Betty, you've got a couple questions?

BETTY NGUYEN, CNN ANCHOR: Yes. We want to bring in legal analyst Jeffrey Toobin to talk about all of this as well.

Jeffrey, I think the question that really struck me was this alternate that's replacing juror number five. That alternate's son- in-law worked with Scott Peterson. They're allowing him to stay on this jury, but is that going to be a major issue here?

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: I don't think that's a major issue, because that -- the fact of his peculiar distant relationship to Scott Peterson was fully aired during jury selection. So the defense and prosecution both had the chance to strike him if they wanted to. Both passed up that opportunity, so I think that is a non-issue if the case against -- as the case goes forward as a legal matter. It's certainly strange, like a lot of things in this case.

NGUYEN: Yes, very -- well, yes. Many things have been strange in this case.

TOOBIN: But it's not -- it will not lead to any sort of appellate proceedings of any kind.

NGUYEN: All right. Well, Rusty Dornin had spoken about Mark geragos putting his arm around Peterson once this juror number five was dismissed. This bodes well for the prosecution, you say.

TOOBIN: Well...

NGUYEN: I'm sorry, the defense?

TOOBIN: I'm not sure. You know, Mark Geragos is an accomplished television performer, and I don't say that in a hostile way. I mean, he knows he's being watched and he may be putting on a brave face.

I think it is to the prosecution's advantage that troublesome jurors are gotten rid of, and the deliberations continue. A hung jury is certainly bad for the prosecution.

But Geragos may be sending the message, and which he may even believe, that the makeup of the jury is moving more toward a group of people that he's more comfortable with. As I said earlier, over the course of a long trial, you get a sense of juror sympathies by watching their reaction. Geragos may believe that troublesome jurors are disappearing and good jurors for him are getting on the jury.

NGUYEN: All right. Legal analyst Jeffrey Toobin, we thank you for your time and your information today. We'll obviously be checking back with you throughout the day. Thanks, Jeff.

HARRIS: OK. I wanted to take a moment and bring Rusty Dornin back in.

Rusty, you've got some thoughts?

DORNIN: Well, I actually had a question for Jeffrey because...

HARRIS: Did we lose him? Let me find out if we lost him.

Jeffrey, are you still there?

NGUYEN: He's gone.

He's gone? Oh, he's gone. Sorry, Rusty.

DORNIN: Well, it's the next question to be answered. But the first juror to be dismissed in this case, Justin Falconer, he was dismissed last June. He's still talking about this jury.

HARRIS: That's right, yes.

DORNIN: Now, the last two jurors that are being dismissed we're told are under a gag order. We do know that there are some media attorneys that are trying to fight that, saying that is not legal, they should also be able to talk about some aspects of this case. I just wanted to see what Jeffrey thought about that.

HARRIS: Well, remind us of this Justin Falconer character. As I recall, he had some very strong opinions about this case. And you wonder, in light of everything that's going on, if perhaps some of those views were shared by other members of this jury?

DORNIN: Well, you have to wonder. But, you know, he -- again, he was only on the jury for four weeks. He did not go through all of the evidence. Certainly he knows the folks on the jury better than any of us do or any of the legal analysts, but as far as the other evidence the jury has seen, how perhaps people have change their minds, you know, he's not privy to that.

HARRIS: OK. All right, Rusty.

Betty, you have thoughts for David?

NGUYEN: Actually, I believe we're going to go on the phone to jury consultant Sonia Chopra.

Are you there?

Do we have her?

SONIA CHOPRA, NATIONAL JURY PROJECT: Hello?

NGUYEN: Hi there.

CHOPRA: Hi.

NGUYEN: I wanted to ask you a little bit about this jury, especially in light of all that's just happened. Rusty had mentioned that -- and also David Mattingly had mentioned that when this jury was told of the dismissal, many of them were shocked. Is this someone that perhaps may have been someone who may have been able to see this, some foresight into this happening, especially with the background of juror number five being an attorney and a doctor?

CHOPRA: Yes, I think it's interesting. I think that the background of this juror would lead anybody to think that he is definitely going to probably be foreperson material, is going to be a leader within the jury.

I think it's interesting that the other jurors didn't seem to know that this was coming, which does lend some support to the idea that this was personal, that he asked to be removed. It doesn't seem like from the other jurors' reaction that there was really dissent around this juror.

NGUYEN: Yes. One juror even seemed a little surprised about that.

And then now the juror foreman, the one that is replacing number five, who used to be the foreman, juror number six, we are told by Rusty Dornin that this person has not been too involved to paying attention to the proceedings. Why would that person be chosen as the foreman?

CHOPRA: Well, it could be, you know, a lot of times you can't read too much into how much people take notes and what you think they're processing because different people process information differently. And sometimes, you know, it's not the person who has the most information that's elected foreperson, but it's somebody who everybody gets along with and who can kind of create cohesion within the group.

So it could be just his personality that -- excuse me -- the other jurors liked -- excuse me -- but, you know, personality-wise, he could be the type of guy who can bring everybody together or let's everybody talk, or who brings out the quiet jurors, that sort of thing.

NGUYEN: And that's the key right now for this foreman, especially in light of all that's happened to bring this jury together and try to get some kind of a verdict despite all that has occurred?

CHOPRA: Absolutely.

NGUYEN: OK. It could be a tough job.

CHOPRA: Yes, it looks like it.

NGUYEN: All right. Sonia Chopra, jury consultant, we thank you for your time today.

CHOPRA: OK, bye.

NGUYEN: Tony.

HARRIS: Busy, busy afternoon. All right. We're going to take a quick break, and we'll come back with an update on the health of Yasser Arafat.

This is LIVE FROM.

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HARRIS: From Ramallah to Paris, Palestinians are bracing for the death of Yasser Arafat, which could be just hours away. CNN's Fionnuala Sweeney is outside the hospital in Paris where the Palestinian leader remains gravely ill -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Indeed, Tony. Yasser Arafat lying in critical condition, in an even deeper coma than the one he first subsumed to a week ago. Nabil Sha'ath, the Palestinian foreign minister, saying a short time ago that his heart and lungs were still functioning, but his brain was only partially functioning. That's because of the brain hemorrhage he suffered two days ago.

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NABIL SHA'ATH, PALESTINIAN FOREIGN MINISTER: Mr. Arafat's status has not changed. Yesterday, in Paris, I said that his heart's still working, his lungs are still working, and at least part of his brain is still working because of the hemorrhage he has suffered. Everything else is not functioning well.

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SWEENEY: Earlier today, the chief cleric, Muslim cleric from Gaza in the West Bank, came here to Paris. He spent an hour and a half by Yasser Arafat's bedside. Shaikh Tasir al-Tammimi (ph) speaking to journalists afterwards, saying that the question of euthanasia hat been ruled out.

It not only goes against Islamic law, but he also said as long as Yasser Arafat continued to function, there was still sign of life in his body, he would be allowed to remain alive. There would be no question of switching off any life support machine.

Here, outside the hospital, the vigil continues. About 100 Palestinian supporters and well-wishers of Yasser Arafat gathered outside this hospital, as they have been for a week or so now, Tony, since the news that Yasser Arafat had suffered a coma first began to emerge.

HARRIS: And Fionnuala, there is real significance to the visit from the clerics. Why don't you talk us through that.

SWEENEY: Well, the reason the cleric has been sent from the West Bank and Gaza is primarily to dispel this notion that there is any question of his life support system being switched off. He is on a respirator as we speak, but it's also to ensure that all Muslim traditions are kept are and are seen to be put into practice.

It won't be only just the French doctors who declare Yasser Arafat dead, should that happen. It will also be the final word from the chief Muslim cleric, and a judge as well, we understand.

He spent an hour and a half, as I said, earlier reciting verses from the Koran by Yasser Arafat's bedside, reportedly seeing one of Yasser Arafat shoulders move. A further indication in his view that Yasser Arafat is well and truly alive.

HARRIS: Fionnuala Sweeney reporting live for us. Fionnuala, thank you.

And as we speak, plans are in the works for a final farewell to Yasser Arafat. A bit later, we'll talk details with our senior editor for Arab affairs, Octavia Nasr -- Betty.

NGUYEN: We are waiting a decision from the Federal Reserve on another possible interest rate hike. And CNN's Chris Huntington is standing by in New York with the latest on this as we await that decision.

Hi there.

CHRIS HUNTINGTON, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Betty.

Well, indeed, all of Wall Street expects the Fed to raise its target on its so-called federal funds rate to 2 percent, up from 1.75 percent. That announcement expected within the next couple of minutes.

The Dow industrials right now are trading a little bit higher ahead of that announcement, up about 20 points. This, if it comes, would be the fourth rate hike since June. Federal Reserve Board chairman Alan Greenspan signaled back then if the Fed...

NGUYEN: Chris, let me jump in just really quickly. It has raised a quarter of a point, we're being told.

HUNTINGTON: Yes, there we go. I'm seeing that, too.

And now, of course, the game becomes what will the Fed do from now on? And there is a statement that will accompany this move. It's not just available yet. But that will be carefully parsed by all of the economists on Wall Street to see -- and if you're familiar with the way that Alan Greenspan speaks, he's almost rarely, rarely tips his hand.

But we are told that the statement right now is basically the same as it was before, which is that the Fed does not see inflation as a huge problem. Inflation right now, if you look at the Consumer Price Index, and particularly what's called the Core Consumer Price Index, only about 2 percent. The Fed pretty much signaling right now that it is not going to change its view of the economy a whole lot.

Now, the Fed Open Market Committee, this is the group of folks led by Alan Greenspan that adjusts interest rates, will be meeting again in middle in mid-December. And Wall Street right now is sort of split, Betty, as to whether or not that will bring another interest rate hike.

NGUYEN: All right. Every time we hear of an interest rate hike, people at home, consumers, people like you and me, want to know how does that affect us, and how long before the hike is factored in?

HUNTINGTON: Sure. Well, I bet you could probably look at the window right now and see some of the banks in your neighborhood raising their prime rates. The prime rate has been at 4.75, it's almost certain to go to 5 percent starting -- and that just becomes sort of a ripple effect throughout the banking community, really starting this afternoon.

There are many, many consumer rates that are set off the prime: credit card rates and auto loans, and so forth. But the most important rate that everybody really worries about are mortgage rates.

NGUYEN: Of course. HUNTINGTON: And oddly enough, those are not necessarily triggered directly by a raise in the Fed funds rate. Those are generally more pegged to what's going on in the 10-year treasury note. And interestingly, even though the Fed has raised its short-term rates in the last couple of months, longer-term rates and particularly mortgage rates have come down a bit. That's essentially the market saying, well, we like the fact that the Fed wants to put a blanket on inflation now so it's not a problem later on.

NGUYEN: All right. Chris Huntington, we appreciate that insight and report today.

And stay tuned for more CNN LIVE FROM.

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HARRIS: White House counsel Alberto Gonzales is expected to be President Bush's nominee to replace outgoing Attorney General John Ashcroft. And we are expecting that announcement to come a little later this afternoon.

Alberto Gonzales is a full-fledged member of President Bush's Texas connection. And joining us now from Austin, Paul Burka, senior executive editor of the magazine "Texas Monthly."

Paul, good to see you.

PAUL BURKA, "TEXAS MONTHLY": Thank you.

HARRIS: Thanks for taking the time to talk to us. Explain to us just how close this connection is between Mr. Gonzalez and the president.

BURKA: Well, it goes back to when Governor Bush was in the governor's mansion here and Alberto Gonzales was his general counsel. And then the governor, then-Governor Bush, appointed Mr. Gonzales to the Texas Supreme Court.

So he has tremendous loyalty from Mr. Gonzales. And I think that's the hallmark of this appointment, that John ashcroft often went out freelancing on his own and created some problems for the president. You won't see that from Alberto Gonzales.

HARRIS: OK. So who is he? I've heard that he's a moderate Republican, a moderate on social issues. Give us a sense of his tone, his temperament.

BURKA: Well, I think he's a very careful lawyer. He was a lawyer at one of the state's outstanding law firms, really one of the nation's, Vincent and Elkins. That was John Connelly's (ph) law firm at one time. It is also, by the way, Enron's old law firm, although Mr. Gonzales was in the governor's office then.

So he has a good legal background. When he was on the Supreme Court, he was only there for a little over a year. But there was a very important abortion opinion in which he took a moderate view. This involved parental notification and minors' rights. And the conservatives and the moderates, all of whom were Republicans, accused each other of legislating. But he wrote the majority opinion.

HARRIS: I see. OK. Give us a sense of -- I'm sure that issue will come up in the confirmation hearings. Anything else on the radar that might come up, maybe his take on these so-called terror memos and his calling at one point in one of the letters the Geneva Conventions quaint?

BURKA: Quaint, oh, yes.

HARRIS: Yes.

BURKA: I'm sure he would like to take that word back. I'm sure that will come up, but it would probably be much more of an issue if Mr. Gonzales were being nominated to the Supreme Court. So I don't think that's really going to be much of an issue, and I can't imagine that the Democrats are going to put much opposition into this.

Mr. Gonzalez has a very good record. Now, there was something when Bush was governor. He was called to jury duty, and Mr. Gonzales got him out of jury duty because he might have been asked about his own personal history arrest record and, of course, there was that DUI up in Maine that had not surfaced at that time.

And so Mr. Gonzales was able to get him out of jury duty. That might be - come up, too.

HARRIS: Do you anticipate -- I guess the Patriot Act comes up for reauthorization in the next few years. Do you expect him to move forward as aggressively in that reauthorization process and view it the same way as John Ashcroft has viewed it, or do you expect it to be modified or changed in any way?

BURKA: Well, I don't think there are many people in America who view it the same way as John Ashcroft viewed it.

HARRIS: Yes.

BURKA: But I would expect him to be more moderate than that. But again, I think you're going to see Mr. Gonzales reflect the White House wishes in issues like that.

HARRIS: And are we going to see other sort of inner circle Texas Bush friends in this second term?

BURKA: I'd keep an eye on Joe Albaugh. I know that the White House is not satisfied with the performance of homeland security.

Albaugh was director of the Federal Emergency Management Agency for two years. Then he went out in private business.

He was the -- again, he is a 100-percent Bush loyalist, exactly like Alberto Gonzales. That agency needs fixing. Joe Albaugh was chief of staff for the campaign in 2000, and Joe Albaugh is the kind of person who can go over there and kick some tails and get it fixed.

HARRIS: Paul Burka, senior executive of the magazine "Texas Monthly," thanks for taking the time to talk to us. We appreciate it. Thank you -- Betty.

NGUYEN: Well, as you've seen here, it's been a busy news day. And we will check the top stories as we approach the half-hour. That is next.

Plus, why Yasser Arafat's state funeral won't be in the Palestinian territories.

And look who is back in the news. The man once known as Cat Stevens gets a special award.

Plus, the comeback kid on what the Democrats have to do to get back in the game.

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