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New Day

Today: Biden Announcement On Student Loan Forgiveness; Florida's Crist To Face Gov. DeSantis In November; Biden Orders Airstrikes On Iran-Backed Forces In Syria. Aired 7:30-8a ET

Aired August 24, 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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[07:30:07]

JOHN BERMAN, CNN ANCHOR: So, later today, President Biden is expected to make a long-awaited announcement on student loan debt.

Sources tell CNN that the president intends to cancel $10,000 in debt for those making less than $125,000 a year. He intends to give even more loan forgiveness for groups, including Pell grant recipients. And a final extension on the pause that's been in place for the pandemic to student loan repayments.

With us this morning, CNN chief business correspondent Christine Romans, and CNN business correspondent Rahel Solomon.

This has been a long time coming and it may make some people happy, but it's making people on both sides unhappy.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT, ANCHOR, "EARLY START": There's a lot of -- I mean, people are passionate about this because there's a -- this will -- response on some who say wait a minute. I sent my kid to a state school. We paid for this. We live below our means. We didn't want student debt in the first place and now we're forgiving people student debt.

Then there are others who say you promised you were going to -- $50,000 is what we heard from Elizabeth Warren on the campaign trail. We wanted more student debt forgiveness. Those are progressives.

And then you have people like Larry Summers, a former Treasury secretary, who says this is inflationary and it's not targeting the right things in the economy. You want to be maybe supporting people who couldn't get to college. This disproportionately affects middle- class people -- people who could get into the college game in the first place.

And then, finally -- and I really feel this way -- it does not affect the problem, which is inflation -- or tuition that's too high and a -- and a higher education system that is just runaway inflation there for the value of what you're getting. It doesn't -- it's a Band-Aid. It doesn't fix that, which is a broken system. KAITLAN COLLINS, CNN ANCHOR: Well, and it also may not address the political aspect for Biden because if he angers progressives who want to see more forgiven -- you know, he hasn't taken -- gone far enough for them. But then, people who don't think it should be forgiven at all are also not happy.

ROMANS: It is something, though, and it is a campaign promise that he would fulfill. He campaigned saying I'm going to get money and it's not fair for young people to have all this debt out there in the world, and it holds them back from being in the middle class. So, it is a campaign promise that would be --

COLLINS: And he's wrestled with it.

ROMANS: And he has really wrestled. And he has been very targeted so far, right -- targeting those who were defrauded from these horrible for-profit situations. Veterans who were defrauded. He has already canceled more student debt than anybody else ever has.

So I think you're going to hear $10,000 today. I think -- and I think that it will make a difference for a lot of people. I mean, I've been talking to people who work here. It will make a difference for a lot of young people who work here. But does it fix the overall problem? No.

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Well, I mean, I think in terms of the inflation -- which, by the way, every economist right now who is on Twitter is debating is it inflationary, is it disinflationary -- I think there are a few ways you can look at it, right?

The $10,000 forgiveness. I think many economists would say OK, that's negligible in terms of inflation.

The pausing, again, student loan payments -- many, like Larry Summers, might say well, if you were to restart payments tomorrow, for example, suddenly, borrowers have one more bill. They have less money to put into the economy.

Other says look, they haven't had this bill for two years so it's not as if new demand is being created. It's not as if new money is being generated. It's a very controversial issue and economically, I don't know that there is a simple yes or no in terms of whether it's inflationary. But you can bet, just like student loan reform, inflation is very controversial and very fiercely debated, and will continue to be so today.

ROMANS: You know, Larry Summers, for two days, was on a tweetstorm that got a lot of attention and a lot of debate. You heard people say if you can bail out the banks, why can't you bail out student debtors? And he makes the point -- no, the government made money bailing out the banks in the end. This is -- this is a grant that taxpayers have here.

BERMAN: Let me talk about two major trends that we're seeing here that are sort of conflicting, which is home prices and gas prices. Tell me what's going on here.

SOLOMON: OK, so let's talk about home prices because, I mean, the housing industry has really fallen off a cliff. Home prices continue to rise although at a slower pace.

Home sales have fallen off a cliff because of two things, primarily. Mortgage rates, of course, have gone up certainly much higher than last year but also much higher than the start of this year. And home prices continue to be high. So people are being pushed out of the housing market.

And it's not just the impact for people who are looking for a home. It's the impact of that then has on rentals. I mean, we have seen rental prices skyrocketing. In fact, rents have hit a record high for almost a year and a half, so that has a real impact on people who can't afford to buy a home but are now finding that they can't afford to rent either.

COLLINS: And the other aspect of this also, though, is gas prices that people are looking at, which are -- it's 70 days no straight that they --

BERMAN: Seventy-one.

SOLOMON: Yes.

COLLINS: So today is 71 --

ROMANS: Yes, three --

COLLINS: -- that they have fallen since June when they were at sky high. You know, it was a major point of issue for the White House.

And so, if you are a consumer and you are looking at what's going on with housing and the fact that home sales are down as much as they are, you're looking at gas prices, what are you -- what is your feeling on this?

[07:35:00]

ROMANS: Everything is cross-currents in the economy. You can pick one thread that would be the headline in the economy in normal times and disruptive, and there are half a dozen things happening all at once.

I think this is why so many of the sentiment surveys don't show that people feel a lot better about lower gas prices because they are having trouble with rent and they're having --

And this -- to circle back to the beginning, this is why Joe Biden wants to give people $10,000 student debt relief because there are so many other things happening here that are headwinds for them. That would be a tailwind at a -- and a campaign promise kept.

BERMAN: Christine Romans, Rahel Solomon, great to see both of you.

ROMANS: Yes. BERMAN: Thanks so much.

COLLINS: All right. For the second time in eight years, Democratic voters in Florida have picked Charlie Crist as their nominee for governor. So, how does a former Republican who is now a Democrat who hasn't won a statewide office since 2006 plan to unite Democrats to beat a powerful GOP incumbent?

Let's ask him. Congressman Charlie Crist joins me now. And Congressman, following last night, what is your plan over the next 11 weeks to take on Gov. DeSantis?

REP. CHARLIE CRIST (D-FL), GUBERNATORIAL CANDIDATE: To tell the truth. To tell them he's tried to tear apart my state, attacking LGBTQ children, attacking women and their right to choose, disrespecting women. Attacking African American voters making it more difficult for them to vote.

Not having drop boxes in minority communities throughout the state of Florida. Making it more difficult for my parents to vote -- my 90- year-old father, my 87-year-old mother. Making it harder to use mail- in ballots in this state.

It's shocking. I mean, it's like he wakes up every morning about the new group he wants to attack. We don't need to tear my state apart. We need to bring my Florida together and do what's right for people and have a heart in the governor's office again instead of somebody whose ambition is so absurd that it's blind for the White House instead of caring about anybody's house in Florida.

COLLINS: But --

CRIST: And we have property insurance rates that are through the roof. It's crazy.

COLLINS: The ambition that you just mentioned -- it's pretty clear Gov. DeSantis has, as it's widely anticipated he will potentially launch a 2024 presidential campaign. That is really what's driving the feeling that Democrats nationwide have, which is that maybe you could help slow DeSantis' rise.

Obviously, that's no small task because despite how Democrats feel about him, Republicans in the state like him very much, obviously. He has high poll numbers, pretty much more than any other Republican who is not named Donald Trump.

And so, I wonder if you view this bid that you are now about to embark on for the next 11 weeks as Democrats' last chance to really -- to really DeSantis from getting to higher office potentially.

CRIST: It is the Democrats' last chance to stop him and it's going to be a lot cheaper to do it in Florida than it would be to do it in 50 states. So, let's do it now. Let's stop this thing.

And I'll give you some other numbers. He's not that popular. What is he, 50 percent approval? Well, when I was governor of Florida, my approval rating was 72 percent. I'll take that 22 percent difference in 2022 any day and six ways to Sunday. I'm going to beat this guy.

People don't even know what's going on in the Sunshine State, Kaitlan. It's unfortunate. But this guy has attacked everybody -- women and their right to choose. Did you see Kansas -- what happened? Kansas -- that's like Mississippi or Alabama.

Florida's a lot different than that. We're a lot more moderate than that. We're a third Republican, a third Democratic, a third Independent. Kansas is not. And you see what women in that state did.

I have already, as the governor of this great state of Florida, vetoed an anti-abortion bill. I mean, my distinction from him on this issue is crystal clear -- crystal clear. And as long as we do what's right, tell the truth, get help from friends across the country -- because if you want to help Joe Biden get a second term, we need to shut Ron DeSantis down in Florida now. It's a lot cheaper.

Help us now. Go to charliecrist.com. Today's the day; now is the time. You want a moment to do what's right for our state and for our country, and for democracy, this is it. This is it -- charliecrist.com. Help us do it.

COLLINS: Congressman --

CRIST: We're already holding, we know, one or two points within him.

COLLINS: One thing I noticed about your campaign is you seem to be adopting the Biden model of running, which is reaching out to more traditional Democratic voters, taking this stance -- not certainly going to the left, obviously. I wonder what gives you the hope, though, that the Democratic brand still resonates in Florida in a general election?

CRIST: It's not the Democratic brand, it's the Florida brand. I'm a Floridian.

Floridians want decency. They want kindness. They want good teachers for their schools. They want safe communities for their children.

[07:40:00]

I'm the former attorney general -- the top cop of this state. You know, I know how to do this. I've done it before.

I've stood up for women. I've stood up for African Americans. I've fought for automatic restoration of rights for 155,000 returning citizens -- returning felons, frankly -- because they paid their debt to society. And I like God and I learned in Sunday School believe in forgiveness.

It's called doing the right thing. Do what's right for people instead of doing what's right for Ron DeSantis' political future. I mean, give me a break.

This guy is walking on the backs of my fellow Floridians to try to get to the White House? He thinks my Florida is a stepping stone? Florida is a special place. She is not a stepping stone.

And we need to do what's right for the Sunshine State, and what's right for the Sunshine State is to put this guy down on November 8, but we need people's help across the country and we need it now. You come help me now and you won't have to worry about him in '24 because this show is going to be over on November 8.

COLLINS: And we did see a little bit of a --

CRIST: charliecrist.com.

COLLINS: We saw a little bit of a preview last night from Gov. DeSantis about how he plans to run against you, talking about COVID restrictions and the way that you framed those during the height of the pandemic.

I do have a question, though. You said Florida is different. Would you like to see President Biden --

CRIST: Let me clear that point, Kaitlan. He talks about -- he talks about the pandemic. You know how many of my Florida friends have died? Eighty thousand Floridians are dead because of his policy -- dead. Over six million of my fellow Floridians have gotten this disease.

His great leadership on this issue because he kept a restaurant open -- you don't have to -- it's a false choice. You can keep business open and save people's lives if you know how to walk and chew gum. He doesn't; I do. We'll make the difference and we'll make Florida better for it, and we'll save people's lives.

COLLINS: Do you think that argument --

CRIST: It's crazy.

COLLINS: -- from you will appeal to Independents more than his argument, which is that he kept the state open, kept the economy running at a time when you saw other Democratic governors in some states having very severe restrictions in place, and they would necessarily argue that it didn't change the outcome of what the death rates looked like and what the hospitalization rates looked like?

CRIST: We don't have to have severe; we have to have common sense. He doesn't have it; I do. I'm the son of a family doctor. My sister is a physician.

I understand science. We can listen to science -- people like Dr. Fauci -- instead of mocking him like my governor -- like our current governor does, and make sure that we keep businesses open and save people's lives. They're not a false choice. You can do both if you've got a brain in your head and you graduated from Florida State University instead of Harvard like he did.

He's out of touch. He doesn't understand the Sunshine State. He doesn't have a clue about this place. It's sad. I do.

You know, I've lived here since 19 -- I was born in Pennsylvania -- Altoona -- but I moved here when I was three years old after my dad finished medical school at Emory in Atlanta.

And this is the place where you can make a difference. This is the place where you can help people. They call it the Sunshine State.

I want to bring the sunshine back to the Sunshine State because honestly, Kaitlan, under this governor -- under DeSantis -- the disaster DeSantis -- it's been dark for four years. We deserve better. Our people are suffering.

The economy is unaffordable. Forbes listed us as the most expensive state to live in in the country. More than California. More than New York. That's his leadership. That's what he's done.

He's a disaster and we deserve better --

COLLINS: Congressman, can I ask you --

CRIST: -- and we're going to get it in about 11 weeks.

COLLINS: Can I ask you one last question? You know, you're talking about the perks of Florida.

CRIST: Sure.

COLLINS: I cover the White House normally. Will we be seeing you in Florida? Do you want President Biden to come and campaign with you?

CRIST: Absolutely. Listen -- look what Joe Biden's done for our -- President Biden, forgive me, has done for our country. He's been exceptional.

Look what he's done for the world. I mean, what's happening in Ukraine -- him bringing NATO together -- new members to NATO -- Finland, Sweden -- it's remarkable. The EU.

I mean, what other president could have done what he's done? He's been phenomenal. Gas prices are down. Inflation is trending down. Democracy is trending up.

I'm running against a guy who is against democracy. He doesn't support mail-in ballots. He doesn't support African Americans and their right to vote.

Joe Biden supports all of that. He's a good man. He's a great man. He's a great president. I can't wait for him to get down here. I need his help, I want his help.

And he's the best I've ever met. I know this man. He offered me his lunch when he was campaigning for me a couple of years ago down in Florida. I don't -- I only eat one meal a day. I try to stay fit. I'm an old quarterback from Wake Forest.

But seriously, this man is a great man. Joe Biden -- thank God Joe Biden's the President of the United States today. Thank God for that.

[07:45:04] COLLINS: All right, Congressman.

CRIST: And President Obama before him. These are good people. I'm sorry.

COLLINS: We'll see if he offers you his lunch --

CRIST: I love these guys.

COLLINS: -- the next time when we are in Florida if he's there campaigning for you.

Congressman Charlie Crist, thank you for joining us this morning.

And a note to viewers. We did reach out to Gov. Ron DeSantis' office to come on this morning and his campaign declined to do so.

All right, we have new video coming in this morning of a U.S. airstrike that happened in Syria. The latest on that from the Pentagon, next.

BERMAN: Ukrainian officials warn of intense attacks today as Russia's invasion of Ukraine reaches the 6-month mark. Have U.S. and European sanctions made a difference? A reality check ahead.

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[07:50:00]

COLLINS: New overnight, President Biden ordering airstrikes on Iranian-backed groups in Syria. Video obtained by CNN reportedly shows these strikes that come a week after rocket attacks near a military base in Syria that was housing U.S. troops.

Let's bring in CNN's Oren Liebermann. Oren, what is the latest that you're hearing from officials at the Pentagon?

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: Kaitlan, the U.S. attack -- a series of bunkers in Deir ez-Zor in northeast Syria. These bunkers, according to U.S. Central Command, used as ammo warehouses and storage facilities, as well as logistic support by these Iranian- backed groups.

The military was looking at a -- at a group of these bunkers -- 11 of them -- as the target here. Bunkers not used specifically in the August 15 attacks but that, in general, were used for support for these Iranian-backed militias. And according to a spokesman for U.S. Central Command, they were surveilled for hundreds of hours before these strikes.

In the end, that spokesman says the military attack -- nine of those -- because there were a few people near a couple of those bunkers, that meant that it wasn't an appropriate time to carry out the strike. According to an initial assessment of the strike, the nine bunkers were destroyed and, at least according to that assessment, there were no civilian casualties or no casualties as a result of this strike. These were carried out after there were two attacks on August 15 one week ago. First, there was a drone attack of the al-Tanf Garrison in Syria. And then just a few hours later, a rocket attack. There were no injuries or casualties in those attacks, according to Central Command.

But the Biden administration felt they had to respond. It's unclear which of those attacks this was in response to but from the Biden administration's perspective and from the U.S. perspective, they were both carried out by Iranian-backed militias and this is the response.

COLLINS: Oren Liebermann, thanks for that update.

BERMAN: So, it is Ukrainian Independence Day. Today also marks six months to the day since the Russian invasion of Ukraine began. Ukrainian defense officials warn of an increased threat of Russian missile strikes today.

So, have the U.S. and its allies done enough in their efforts to deter Russia? John Avlon with a reality check.

JOHN AVLON, CNN SENIOR POLITICAL ANALYST: We're now six months into Russia's brutal and unprovoked invasion of Ukraine. It's a remorseless war that some experts said would never happen, while other said it would all be over in a matter of days.

But the predictions of Putin's restraint or Russia's overwhelming military might have both proven to be bluster. To date, some of the predictions of economic doom for the West if it dared stand up to Russian aggression.

But what about the hype around the unprecedented international sanctions on Russia? Well, let's dig into the data because a World Bank report shows that Russia's GDP is projected to plummet this year, more than 11 percent, while inflation hit a stunning 17 percent in April and has hung around 15 percent since.

That's not all. A detailed analysis of Russia data by Yale economists is damning. It shows that Russian imports have largely collapsed leading to widespread supply shortages, while Russian domestic production has come to a complete standstill. And while Europe is feeling energy pressure, the Kremlin's oil and gas exports can't be shifted overnight to Asia, as some have suggested.

Not only that, the foreign companies that have left Russia in the wake of the invasion account for some 40 percent of GDP, with some 500,000 workers fleeing the country, half of whom are highly educated, and they aren't coming back anytime soon.

Now, the Yale paper concludes that while Putin is sorting to patently unsustainable dramatic fiscal and monetary intervention, looking ahead there's no path out of economic oblivion for Russia as long as the allied countries remain unified in maintaining an increase in sanctions pressure.

So, the Kremlin's predictable talking point that international sanctions have utterly failed has about as much credibility as the black knight in Monty Python's holy grail.

(BEGIN VIDEO CLIP)

CLIP FROM "MONTY PYTHON AND THE HOLY GRAIL": It's just a flesh wound.

(END VIDEO CLIP)

AVLON: But to quote another line in that film, the Russian economy is not dead yet. Continued Western resolve through the upcoming winter is essential, as is for the ratcheting up of the cost on the oligarchs.

I reached out to Cornell Professor Nicholas Mulder, who is the author of a new book on sanctions called "The Economic Weapon," and here's his take. Quote, "The sanctions have caused serious damage to the Russian economy and will continue to cause more. But they haven't succeeded in their ultimate goal, crippling Putin's war effort in Ukraine by causing insurmountable economic problems for them."

It is direct pressure on Putin's Kremlin cronies and more support for Ukraine's economy that might matter most. And surprisingly, there is still leverage to be pulled.

As jailed Russian opposition leader Alexey Navalny recently pointed out in a post -- social media post from prison, to date, Western sanctions have only targeted 46 of the Forbes list of Russia's 200 richest people. So that leaves a lot of room and rational questions about what they're waiting for.

Look, all this comes with a caveat that increased domestic economic pressure on Putin could make him even more desperate and more dangerous. But that's no reason to retreat from the economic isolation of Russia. Because giving in to a bully is only a guarantee of further conflict.

[07:55:06]

The bottom line, international sanctions on Russia are unprecedented and they have succeeded in having Russians pay a likely long-term lasting price for its aggression against Ukraine. As the Yale study says, "By any metric and on any level, the Russian economy is reeling, and now is not the time to step on the brakes."

And that's your reality check.

BERMAN: John Avlon, thank you very much.

And we should note that ahead, State Department spokesman Ned Price will be here on NEW DAY live.

New research this morning on electric currents possibly improving short-term memory. Dr. Sanjay Gupta here to explain.

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COLLINS: Want to improve your short-term memory? A new study shows that non-invasive brain stimulation in the form of mild electrical currents might be the answer.

CNN's chief medical correspondent Dr. Sanjay Gupta is here to tell us more about this research. So, Sanjay, 1) where do I sign up; and 2), how exactly does this work?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, this was mostly for people over the age of 65 Kaitlan, so you have some time, hopefully, before you would need something like this.

But it is -- it is kind of remarkable research. You know, brain surgery -- that's my area. And the idea that you could start to non- invasively stimulate the brain, it's a relatively new idea. Why? Because the brain is encased by skull. But over the last 20 years, they have been able to use magnets, they have been able to use sound. And as you say, now electricity to try and change the brain -- to stimulate it in different ways.

And what they found here was really interesting. They basically took this -- these alternating electric currents and stimulated two different areas of the brain.