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COVID Cases In U.S. Plunge, But Thousands Still Dying Each Day; U.S. Households Spending Additional $276 Each Month; Prince Andrew Agrees To Settle Sex Abuse Lawsuit. Aired 7:30-8a ET

Aired February 16, 2022 - 07:30   ET

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


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[07:31:37]

BRIANNA KEILAR, CNN ANCHOR: COVID cases are plummeting in most places across the country. In New York, down 97 percent since the January peak. And in states, both red and blue, you're seeing them ditch mask mandates without waiting for the CDC'S blessing. But there are questions remaining about whether the Biden administration will be ready if the U.S. is hit with yet another wave.

Joining us now is Dr. Tom Inglesby. He is a senior adviser to the White House COVID-19 response team, as well as the director of the Center for Health Security at the Johns Hopkins Bloomberg School of Public Health. Doctor, thank you so much for being with us this morning.

I want to talk to you about testing and masking -- testing, first, though. Can you just tell us about this request that you're making of the testing industry?

DR. TOM INGLESBY, SENIOR ADVISER, WHITE HOUSE COVID-19 RESPONSE TEAM, DIRECTOR, JOHNS HOPKINS CENTER FOR HEALTH SECURITY, BLOOMBERG SCHOOL OF PUBLIC HEALTH: Sure. Good morning, Brianna. It's great to be with you.

So just taking a step back for a moment, when we started the administration, there were no rapid tests on the market. And over the past year, we've seen the supply of rapid tests grow dramatically. We now have a very strong market.

Stocks -- the pharmacy stocks are now ready for people to buy these tests. We have tests now covered by private insurance. And hundreds of millions of tests are either now delivered to Americans' homes or on their way to Americans' homes.

So, the step we're taking today is to put our foot on the gas, make sure we sustain this progress, and make a formal request to the industry that develops these tests to ask them for best ideas on how to sustain and expand this market in the months ahead. We know the market is volatile. We know demand will go down as Omicron goes down and we want to do everything we can to sustain and expand this testing market. KEILAR: I mean, it seems like the tests that did go out, they missed -- they missed the wave, right? A lot of people are getting them or -- I haven't gotten mine yet, for instance. I know a lot of people have gotten them but a lot of people haven't at a time where you don't really even need them anymore.

INGLESBY: Well, at this point, more than 50 million households have received their tests out of the initial 60 million that were ordered. So that's more than 80 percent of those who have ordered their tests have gotten them and the rest will get them this week. We know you'll get yours this week, Brianna.

And we're going to need these tests going forward. We're going to need them to interrupt the spread of COVID for the long term. We're going to need them for people to be able to get early diagnosis so they can get treatment quickly. And we're going to need them to protect the most vulnerable in our society.

So, the Omicron surge -- we're very happy to see that subsiding but we're going to need these tests for the long run.

KEILAR: Are you expecting another surge similar to Omicron?

INGLESBY: We're going to be prepared for any surge that comes. We don't know whether we'll have another surge. We're -- as the president has said, we're looking forward to in the near term a time when COVID doesn't disrupt our lives in the way it has, and we're going to work to protect people and treat them. But, of course, we are going to be prepared for any surge in the future.

And we are now bettered protected for -- against COVID than we've ever been. We have more access points for vaccine and boosters. We have more treatments available. Masks -- 230 million high-quality masks have been delivered to pharmacies and community health centers. And we have a very strong testing market. So we have more tools than ever before.

We hope that we're in a period of time where we're going to be able to have much less disruption, but we're prepared for a variant of the future if one arrives.

[07:35:00]

KEILAR: So, let's talk about masks now.

INGLESBY: Yes.

KEILAR: At what point does it make sense to abandon them in schools, at least temporarily?

INGLESBY: So, CDC is reviewing that data very carefully. The CDC is seeing the numbers come down across the country and seeing the hospitalizations subside, and that's all great news. So I know that they are very carefully reviewing the information.

I think CDC's job is to make sure that schools are safe and that kids can be in school around the country. And we're very happy that whereas in the beginning of the administration, there were about 46 percent of schools that were in-person. Now we're up to 99 percent of schools in- person and we want to keep it that way. So, CDC is going to review the guidance and make its judgments and offer that guidance to the American people.

KEILAR: Does it make more sense that masks maybe should be reconsidered if they're not high quality, considering how we saw the spread of Omicron?

INGLESBY: I think what CDC has said is that you should wear the best mask that you have available. So, any mask is better than no mask but, of course, these high-quality masks that are being distributed for free now are the best. And so, whatever high-quality mask is available, I think that's the recommendation.

The government will be making high-quality masks available for kids. That process is underway. But for now, I think for adults, wearing the best mask you can get your hands on when you're in indoor settings and the situation requires it, that would be the recommendation.

KEILAR: But if we're talking about kids in school --

INGLESBY: Yes.

KEILAR: -- and they don't have -- and look, I've tried to get -- I have little kids. I've tried to get high-quality masks for them. It's tough. They come, they don't fit -- they fit one, they don't fit the other.

Does it make sense to reconsider it while you don't have those high- quality masks available for younger kids, or why not?

INGLESBY: I think what CDC has said is that -- is that you should be wearing a mask that's the best mask possible. So we know cloth masks are better than no masks. Surgical masks are better than cloth masks. So whatever mask is available and fits well for kids should be used, according to CDC guidance.

We know that local officials will make their own judgments about what works best for their schools. But we're hopeful that local officials will really carefully consider all the science and particularly, CDC recommendations as they make decisions about that.

KEILAR: All right, Dr. Inglesby. Thank you so much.

I know, and you know this, there are so many questions right now, especially I think for parents of young kids. They're waiting for vaccines. They've been watching Omicron. So we're going to keep pursuing them.

And we appreciate you joining us.

INGLESBY: Thanks so much, Brianna.

Prince Andrew reaching a settlement with the woman who accused him of assaulting her when she was a teenager. But there are some big questions that remain, like how much is going to be paid out here and who exactly will be paying.

JOHN BERMAN, CNN ANCHOR: Plus, could the Russia-Ukraine conflict push inflation past 10 percent? That's a big number. Christine Romans here to answer that question.

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[07:42:15]

BERMAN: New analysis shared exclusively with CNN warns the Russia- Ukraine crisis could send U.S. inflation soaring to 10 percent.

Christine Romans, our chief business correspondent, joins us now with that. That's a big number.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT, ANCHOR, EARLY START: It really is, John. You know, war in Europe could carry a high price for American consumers. President Biden acknowledging the consequences if Russia invades Ukraine.

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JOE BIDEN, PRESIDENT OF THE UNITED STATES: I will not pretend this will be painless. There could be impact on our energy prices. So we are taking active steps to alleviate the pressure on our own energy markets and offset raising prices.

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ROMANS: Higher gas prices, really, a certainty here. Crude oil prices already, John, up this year, struggling to keep up with the demand of a rapidly growing and reopening economy.

Russia, of course, is the world's second-largest producer of oil. A war in Europe or sanctions that cut off supply would send prices even higher. The question: how high?

Now, if prices rise north of $110 a barrel, one estimate has annual inflation in the U.S. topping 10%. That would be the highest since 1981.

Energy prices are a huge factor in this red-hot inflation hitting your household budget. January's Consumer Price Index, 7.5%, already the fastest annual growth in four decades.

At the pump, the national average is a 7-year high here of more than $3.50 a gallon. John, it's up 20 cents in the past month alone. Experts forecast $4.00 a gallon, national average, by the summer -- worse on the west coast.

Until then, the world waits for clarity on just what Vladimir Putin's end game is with Ukraine. John, as oil prices rise, Russia makes money. As it stands right now, a profitable situation for Vladimir Putin and the Russian economy. BERMAN: That's right -- 150,000 troops are expensive but when you create crisis like this, for Putin, it helps pay for itself.

Christine Romans, terrific reporting. Thank you so much.

KEILAR: All right, more now on how inflation is hitting Americans in their wallet. Families are spending hundreds of extra dollars each month just to keep up.

CNN's Vanessa Yurkevich is live in Tampa, Florida with more. Vanessa, tell us what you're seeing.

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Brianna, right here in Tampa, Florida, they are seeing the highest rate of inflation in the entire country in the last year, according to the Labor Department. So, families here are especially feeling this pain of rising prices.

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YURKEVICH (voice-over): Across America, families are spending $276 more per month on average because of inflation, according to Moody's Analytics. But here in Tampa, Florida they're feeling the squeeze even more.

YURKEVICH (on camera): Does that number sound about right to you?

[07:45:02]

GINA TULLIO, TAMPA RESIDENT: Yes. I mean, I would say in that ballpark is pretty accurate.

YURKEVICH (on camera): Do you estimate that you might spend even more some months?

TULLIO: Yes.

YURKEVICH (voice-over): Gina Tullio and her family of four live just outside Tampa. The metro area with the highest rate of inflation in the country soaring to 9.6% in the last year.

GULLIO: It doesn't seem to be slowing down. That's where the real concern is.

YURKEVICH (voice-over): She's feeling it with daycare --

GULLIO: It went up by like $30.00 a week.

YURKEVICH (voice-over): -- at the grocery store --

GULLIO: My eggs are a dollar more. And then I looked at the milk and I was like that's $1.50 more for the same gallon.

YURKEVICH (voice-over): -- and at the pump.

GULLIO: I'm like oh my God, $4.00. I paid $4.09 today for gas. So -- YURKEVICH (on camera): Is that the highest you've paid?

GULLIO: Yes.

YURKEVICH (voice-over): But the biggest pain is at the Rita's Italian ice franchise she just opened.

GULLIO: Have you been to Rita's before?

UNIDENTIFIED FEMALE: No.

GULLIO: Really? Oh, well, you're in for a treat.

YURKEVICH (voice-over): She's getting ready for her supply costs to go up on everything from paper goods to sugar.

GULLIO: This price is going to go up by 20%.

YURKEVICH (voice-over): She says she doesn't want to raise prices but in order to do that she's cut her entire salary.

GULLIO: It's got to come from somewhere. And so, I just -- it's a really tough position, like, to be in as a business owner. So I just -- I'll take it from me.

YURKEVICH (voice-over): Millennials like Tullio, and Latinos, have seen the steepest rise in living costs and the growing Latino population here in Tampa is outpacing the national average.

KATHERINE BAEZ, TAMPA RESIDENT (speaking foreign language).

In December, Katherine Baez says her rent went up by $400. "What did you think," I asked her.

BAEZ (speaking foreign language).

YURKEVICH (voice-over): "I can't," she said. So she moved and is now picking up odd jobs just to keep up with rising costs. Her one-woman beauty services business isn't covering the bills.

BAEZ (speaking foreign language).

YURKEVICH (voice-over): "I've had to clean homes, offices. It's not very comfortable but it has to be done," she said. Trying to keep up for her and her son has been hard, she says. I asked her how it's been emotionally.

YURKEVICH (speaking foreign language).

BAEZ (speaking foreign language).

YURKEVICH (voice-over): "There is uncertainty because when the date for paying these bills arrives and you don't have the full amount, you feel anguished. As a sole provider, as a single mother, it is difficult," she said.

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YURKEVICH: Now, there is an emotional element to these rising costs, especially for lower-income Americans whose wages may not be keeping up with this inflation. Some residents we spoke to say it's up to the government to fix this; others say there's too many forces at play for anyone to fix this, Brianna.

But it's important to note that some people we spoke to are fearful. Where these prices are or where they will stick just shows how Americans feel like they have no control over these prices and the stress that comes along with it -- Brianna.

KEILAR: Yes, so much stress. Vanessa, thank you so much for that report.

Alec Baldwin sued by the husband of the cinematographer that he killed on his film set. So, how will his comments, like this, play into it?

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ALEC BALDWIN, ACTOR: Something happened here that resulted in his wife's death. He's entitled to something, as far as I'm concerned.

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BERMAN: We also have breaking news. A new setback in former President Trump's efforts to prevent the January 6 Committee from seeing White House visitor logs.

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[07:52:48]

KEILAR: Prince Andrew agreeing to settle a sexual abuse lawsuit brought by Virginia Giuffre. She claims that convicted sex offender Jeffrey Epstein forced her to have sex with his friends, including the prince, when she was just 17.

CNN's Max Foster is live for us in London with details. Max, what do we know about the settlement here?

MAX FOSTER, CNN ROYAL CORRESPONDENT: Well, obviously, he hasn't been found guilty but he hasn't been cleared, either, of this. There's an out-of-court settlement and a sum is being paid to Virginia Giuffre and separately also to a charity, as we understand it. But neither side is talking so there must have been some sort of agreement that Giuffre and Prince Andrew wouldn't make statements beyond the one that was filed to the court.

So we don't know how big this settlement was. Lots of speculation in the British newspapers that it's over $10 million. That raises the question of how he's going to pay for it. He doesn't appear to have that sort of income, so is the queen paying for it? Buckingham Palace not commenting either. If she is linked to this case, obviously, that could potentially be quite damaging as well. In terms of the statement that was filed to the court, "Prince Andrew

intends to make a substantial donation to Ms. Giuffre's charity in support of victims' rights." That, we believe is separate to the payment that was paid to Giuffre. "Prince Andrew never intended to malign Ms. Giuffre's character," so is the statement. That comes after allegations that he did try to malign Ms. Giuffre's character in the early stages of this case.

I have to also say there's a separate story here as well involving his brother, Prince Charles, today. We found out that London's Metropolitan Police are investigating his foundation over allegations that it promised assistance with a knighthood in return for donations from a Saudi businessman.

So, a huge amount of bad publicity today here in the U.K. over the royal family.

KEILAR: Would you be really surprised Max if it turned out that the queen had supplied some of the money for the settlement?

FOSTER: I wouldn't in the sense that he doesn't have an income and he does depend on money from the queen to live, effectively. He has a military pension but that's not very large. He's got property. He can sell that but it's not going to last very long. So his only source of income, really, is the queen at this point.

[07:55:02]

And after this, he'll have to go out to the private sector and earn an income.

But at the moment, he hasn't got a private income so he's only got one option, really, going to the queen. But she won't want to be associated with this. She tries to distance herself as much as possible from this case by effectively sacking him. But privately, maybe she feels a duty to help pay for him as a mother.

KEILAR: Yes. Max, thank you for that report.

BERMAN: All right, we do have breaking news this morning.

The New York Times is reporting and CNN has confirmed that the Biden administration sent a letter to the National Archives saying it must hand over White House visitor logs from the Trump administration to the January 6 Committee within 15 days. Trump has claimed that the logs are subject to executive privilege.

Joining us now, Jeffrey Toobin, CNN chief legal analyst, and former federal prosecutor.

One can see why these logs could be important in the investigation -- who was going in and out of the White House after Election Day until January sixth.

JEFFREY TOOBIN, CNN CHIEF LEGAL ANALYST, FORMER FEDERAL PROSECUTOR: It's very -- it's very important evidence and it's also an easy call. The White House logs are something that Democratic administrations --

the Obama administration, the Biden administration -- doesn't think they are covered by executive privilege and doesn't even think they should be private. They have released them publicly.

So, consistent with what the courts have said, we only have one president at a time to assert executive privilege and the great majority of cases. This is something that I am sure the National Archives will simply follow and turn over.

BERMAN: And if the Trump people do try to fight this in court it seems to be a tough battle given what the courts have already ruled in terms of the merits of the investigation. That things like this do seem worthy.

TOOBIN: This is a slam-dunk compared to other -- you know, there are certain areas of executive privilege where there is genuine dispute over what's covered and what's not. Given what the courts have said about executive privilege, I don't see any judge will give this even the time of day, if Trump even goes to court to try to fight the issue of the visitor logs.

BERMAN: Other legal matters --

TOOBIN: Yes.

BERMAN: -- for our chief legal analyst here.

TOOBIN: Yes.

BERMAN: The family of Halyna Hutchins, who was killed on the "Rust" film set by the gun that Alec Baldwin fired or that went off in his hand -- the family is suing Baldwin and others in a wrongful death suit.

What's the standard there? What do they need to prove, and where is this headed?

TOOBIN: Well, it's a -- it's a negligence case. Did the people running the film set -- and that's one of the issues is who was actually in charge -- show ordinary care? And obviously, they didn't.

It is inconceivable to me that a case like this will go to trial. The only issue here is what does the insurance cover and what will the insurance pay? I mean, they are simply going to pay out whatever they can. And the question -- the only question will be how much will Alec Baldwin, as a producer of the film, have to contribute. What about the other defendants.

I mean, the idea that -- there's no doubt there was negligence here. I mean, in a most extreme and horrible way. It's only a question of how many dollars they're going to get.

BERMAN: Is Alec Baldwin on the hook as the person who held the gun, or is he on the hook as a producer of this? TOOBIN: You know, a lot of it is going to depend on what the contracts say. You know, what do the contract -- his contract, his producers say? I think that's really what's -- what does the insurance cover?

I think the criminal liability is going to be more complicated. I don't think Alec Baldwin is going to have any criminal responsibility. But the armorers -- the people who placed the bullets in the gun or didn't place the bullets in the gun -- that's a -- where I think the heart of the dispute is.

Baldwin, I don't think, is going to face any criminal liability, but depending on what his contract says, he might have to pay some money.

BERMAN: Jeffrey Toobin, great to see you this morning.

TOOBIN: Mr. Berman.

BERMAN: Thank you very much.

NEW DAY continues right now.

KEILAR: Good morning to viewers here in the U.S. and around the world. It is Wednesday, February 16th, and I'm Brianna Keilar with John Berman.

And just moments ago, NATO's secretary-general issued a chilling update on the crisis in Ukraine, declaring that Russia has the capability to launch a full-fledged invasion without warning. He says we have not seen any de-escalation on the ground -- on the contrary. It appears that Russia continues the military buildup.

Today is officially a day of unity in Ukraine, so declared by Ukraine's President Volodymyr Zelensky, even as his nation is facing the threat of a possible invasion.

President Biden urging Russian President Vladimir Putin not to give up on diplomacy, and taking the unusual step of appealing directly to the Russian people.

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BIDEN: We're not targeting the people of Russia. We do not seek to destabilize Russia. To the citizens of Russia, you are not our enemy and I do not believe you want a bloody, destructive war against Ukraine.

(END VIDEO CLIP)

BERMAN: This morning, the Kremlin is responding to President Biden's comments for the first time.

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