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New Day Saturday

Markets Rattled Amid Fears of Inflation, Dramatic Rate Hikes; Trump Call Members of Jan. 6 Select Committee "Con Artists"; CDC Advisors Vote Today on COVID-19 Vaccines for Young Children; Third American Missing in Ukraine Identified As Former U.S. Marine. Aired 6- 7a ET

Aired June 18, 2022 - 06:00   ET

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

[06:00:25]

CHRISTI PAUL, CNN ANCHOR: Well, good morning to you. Welcome so much to your Saturday. We're grateful to have you. I'm Christi Paul.

BORIS SANCHEZ, CNN ANCHOR: And I'm Boris Sanchez. The White House projecting optimism despite soaring inflation draining Americans' wallets, the very real impacts, the rising interest rates are having on mortgages, car prices and salaries.

PAUL: Yes. You know it very well. All of you watching here. So former President Trump when he's speaking publicly about the January 6 committee hearings, this as we're learning who will testify next week, and the role the wife of a Supreme Court justice played in trying to overturn the election, will we hear from her?

SANCHEZ: Plus, more than two years into the pandemic, a key moment in the fight against Coronavirus, the CDC set to vote on recommending vaccines for young children.

Good morning, it's Saturday, June 18. We are grateful that you're starting your weekend with us. Christi, it's always a pleasure to be with you.

PAUL: Good to see you too, Boris. So let's talk about these new fears that we're learning about regarding the U.S. economy and that it is headed toward a recession.

SANCHEZ: Friday marked the end of a rocky week for Wall Street after the Federal Reserve announced its largest interest rate hike in decades, all in an attempt to tame inflation. The Dow edging down on Friday, the S&P finishing slightly higher but still winding up with its worst week since 2020.

On the brighter side, we also learned that wages in the United States are climbing at their fastest rate since the mid-1980s. But inflation has climbed up so quickly that workers have actually been handed a pay cut.

PAUL: Here's the thing, President Biden told The Associated Press, America is in a stronger position than any other nation to overcome inflation. And he addressed rising fuel costs.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: In the United States, I'm using every lever available to me to bring down prices for the American people. And our nations are working together to stabilize global energy markets, including coordinating the largest release from the global reserve, from global oil reserves in history.

(END VIDEO CLIP)

SANCHEZ: The White House is pushing back on the grim economic outlook with officials saying that a recession is not inevitable.

PAUL: That doesn't necessarily quash the concerns about what the future holds. Here's CNN's Matt Egan.

MATT EGAN, CNN BUSINESS REPORTER: Christi and Boris, this was another brutal week for the American economy. Stocks are down, inflation and borrowing costs are up. And all this is causing real economic anxiety for families.

The good news is the jobs market is still pretty strong. Historically low unemployment, layoffs are relatively uncommon, though they are picking up a bit. The bad news is that even the White House concedes the jobs market needs to slow down to get inflation under control. Inflation is so high that the Federal Reserve is resorting to the most aggressive interest rate hike since 1994.

Now, the goal is to slow the economy just enough that prices chill out, but not so much that it causes a recession. That won't be easy. And in the meantime, borrowing costs are surging, especially in the housing market. Mortgage rates are spiking at the fastest pace since 1987. The average 30-year fixed rate mortgage is now 5.8%. That's almost twice as high as a year ago. This is going to pry some people out of the housing market. The higher mortgage rates go, the less home you can afford.

The business leaders and investors are getting nervous. A new survey from the Conference Board found that 60% of global CEOs and executives expect a recession by the end of next year. And 15% say we're already in a recession.

Recession fears have helped cause more market mayhem on Wall Street, with U.S. stocks falling sharply this week. And these losses are shrinking investment portfolios 401(k) plans and college savings plans. Now, hopefully these economic worries are overdone, and the Fed is able to get inflation under control without causing a recession. But the risks are clearly rising. Boris and Christi.

SANCHEZ: Matt Egan, thank you so much for that report. Joining us now to discuss the implications, CNN Political Commentator Errol Louis, he's a Political Anchor for Spectrum News and host of The You Decide Podcast.

Hope you drank some coffee this morning, Errol, it is bright and early, and we appreciate you joining us. I think some of the concern when it comes to this statement from the White House that a recession is not inevitable is that they also insisted that inflation was transitory and that it would go away. But it hasn't. What do you think of the White House's messaging on the economy?

[06:05:20]

ERROL LOUIS, CNN POLITICAL COMMENTATOR: Well, the White House -- good morning, Boris. The White House's messaging on this is really talking past the question. They're really less concerned, I think about trying to identify whether or not there's going to be a recession, which is a very iffy kind of proposition. But we'll know one way or another within a few weeks.

What they're really getting at is that they should not be blamed that they're -- they should not be held accountable to the extent that voters are having a hard time dealing with inflation and dealing with the looming recession. And make no mistake about it, we're very likely to see when in fact, the Atlanta Federal Reserve, the Atlanta branch or the Federal Reserve, the economist there have already said that we're already in a recession, which is just defined as two consecutive quarters of GDP shrinking. I think it's very likely.

What the White House, though, I think beyond messaging has to do is make clear that they did what they were supposed to do. They were supposed to make sure that households didn't fall off a cliff, economically. They're supposed to see to it that there was an economic reopening that would be robust. And that, in fact, is what has happened. Americans were and are out there spending, getting jobs, going back to work and so forth. That's exactly what we wanted. That's why we had the vaccination campaign.

On the other hand, not -- the rest of the globe is not opening at the same pace. And in the same way. And that in part is what is driving inflation when you have the number one exporter of natural gas, which is Russia, going to war with the number five exporter of wheat, which is Ukraine, the price of fuel is going to go up, the price of food is going to go up. The price of everything is going to go up.

When you have China responding to its problems with the pandemic by locking down major, major cities so that they're not making computer chips. They're not making cars, they're not doing a lot of things that, you know, that is driving inflation as well. So, look, the White House has to say, we're doing what the American people wanted us to do. We're making sure we got to reopening, we're making sure people have money to spend and that they can go out and do it. The after effect of that, however, is inflation, Boris.

SANCHEZ: And President Biden has been quick to point out that inflation in other countries across the world is also rising at a speedy clip. For people in the United States, one huge concern, sky high gas prices of the White House has indicated that all options are on the table that President Biden is studying everything that can be done to help relieve the cost of gas prices for Americans, including rebate cards and other options. What do you think of those options and which one the White House is most likely to pursue, if any? LOUIS: Well, what the White House cannot say is that even if he released everything that's in the Strategic Petroleum Reserve, even if all of that was released tomorrow, the levels of inflation are not going to noticeably come down, you're still going to be tipping up toward $5 a gallon at the pump. It's a big global market. We don't have the power as a sole economy, even as the largest economy in the world with a very robust recovery, you're not in a position to sort of just change reality.

What's happening in Saudi Arabia matters. What's happening in Russia matters. What's happening in Ukraine matters. What's happening in China matters. And these are problems that no president can just turn around at the snap of a finger. So yes, he's going to say -- the President is going to say he'll do everything that's within his power. The dirty little secret there, though, Boris is that what's -- within his power when it comes to something as large as the global price of petroleum is really quite limited?

SANCHEZ: I'm glad you mentioned Saudi Arabia because I wanted to ask you specifically about that. He's planning a controversial trip to Saudi Arabia, clearly an attempt to repair some of the bonds that he may have frayed with Mohammed bin Salman, after the fair criticism that he made of the Saudi leader for the death of Jamal Khashoggi, The Washington Post journalist. Even some Democrats have been critical of Biden's decision to now try to reset that relationship. Here is how President Biden address that yesterday.

(BEGIN VIDEO CLIP)

BIDEN: I'm not going to meet with MBS. I'm going to an international meeting, and he's going to be part of it, just like there were people part of the discussion today.

(END VIDEO CLIP)

SANCHEZ: How do you think about how the White House is handling this? Because he says he's not going to go meet with MBS. There is no foreign policy in Saudi Arabia without MBS?

LOUIS: Oh, that's correct. Look, the reality is a lot of diplomacy is done around the edges. It wouldn't be the first time that this or any other American president did business while they were at, you know, Davos or some economic conference something entirely innocuous in some ways. The point is that the diplomacy gets done whether it was a specialized trip.

[06:10:13]

The question that we were just talking about, Boris, is very much related, of course to this conversation. You don't go and talk to the Saudis just because you feel like having a chat. You go to them when there are oil shocks where there's, you know, I saw some gasoline prices over $6 a gallon. I've never seen that. These record high prices are something that the President has to deal with. This is how you do it. It would be nice if the White House just came out and said, so that if you ever hope to see these prices come down, you've got to be in conversation with the Saudi Arabian government. And that, in fact, is what he's going to do.

SANCHEZ: Errol Louis, got to leave the conversation there. Always appreciate having you here.

LOUIS: Thanks.

PAUL: As we're following several developments in the January 6 investigation, first of all, former Trump Trade Adviser Peter Navarro has pleaded not guilty to contempt of Congress charges. He's also refusing to cooperate with the Select Committee investigating the insurrection at the U.S. Capitol.

SANCHEZ: The January 6 committee is holding more hearings next week focusing on Donald Trump's efforts to overturn the 2020 election results. And for his part Trump is attacking the committee calling the members con artists. CNN Justice Correspondent Jessica Schneider has details in this report.

(BEGIN VIDEOTAPE)

DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: I never called Mike Pence a wimp. I never call him a wimp. Mike Pence had a chance to be great. He had a chance to be frankly historic. But just like Bill Barr and the rest of these weak people, Mike and I say it sadly because I liked them, but Mike did not have the courage to act.

JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT: Former President Trump using his platform at a conservative political conference to deny the evidence against him and blast the January 6 committee.

TRUMP: The con people, they're con artists.

SCHNEIDER: Trump's attacks come as the Committee is gearing up for several more hearings. CNN has learned Georgia Secretary of State Brad Raffensperger will be at Tuesday's hearing with his deputy.

TRUMP: All I want to do is this, I just want to find 11,780 votes, which is one more than we have because we won the state.

SCHNEIDER: They'll testify about Trump's efforts to pressure them to change the election results. The Committee also wants to talk to Ginni Thomas, the wife of Supreme Court Justice Clarence Thomas about her communications with Trump Attorney, John Eastman. Eastman devised the scheme to pressure then Vice President Mike Pence to block the certification of Biden's 2020 electoral win.

MIKE PENCE, FORMER VICE PRESIDENT OF THE UNITED STATES: To tell her it's verified, appears to be regular inform and authentic.

SCHNEIDER: Something Pence ultimately refuse to do.

REP. BENNIE THOMPSON (D-MS): We have sent it, Ms. Thomas a letter asking us to come and talk to the committee. We look forward to her comment.

UNIDENTIFIED FEMALE: You need to follow -- SCHNEIDER: Ginni Thomas issued a short response to the committee via

the conservative publication Daily Caller saying she can't wait to clear up misconceptions. I look forward to talking to them. Eastman denying he ever discussed election litigation that might come before the Supreme Court with Ginni Thomas or with Justice Clarence Thomas. Eastman writing, we have never engaged in such discussions, would not engage in such discussions and did not do so in December 2020 or anytime else.

While the Committee has requested cooperation from outstanding witnesses, it has so far refused to share full transcripts of all of its interviews with the Justice Department, but the Committee says it will not be an obstacle to Justice Department prosecutions.

THOMPSON: We are not going to stop what we're doing to share the information that we've gotten so far with the Department of Justice, we have to do our work.

SCHNEIDER: CNN has learned to the panel is running into problems securing witnesses for an upcoming hearing about Trump's efforts to pressure the Justice Department to support and promote his false election fraud claims. While Jeffrey Rosen and Richard Donoghue, the top two officials at DOJ in the final weeks of the Trump administration are expected to appear. The committee is so far striking out with Pat Cipollone. Cipollone is the former White House lawyer credited with talking some sense into Trump by threatening to resign. Sources say Cipollone is not expected to join the hearing in person, despite already talking to the Committee privately.

(On camera): And the New York Times is also reporting that the committee could start sharing transcripts of those witness interviews with the Justice Department as soon as next month. Jessica Schneider, CNN, Washington.

(END VIDEOTAPE)

PAUL: Jessica, thank you so much. So we're learning more about that deadly shooting in an Alabama church, what police are saying now about how this all unfolded and the person who held down that shooter until officers arrived.

Also Texas Republican Senator John Cornyn booed at a GOP convention in his own state because of his work on a bipartisan gun safety package.

[06:15:00]

Senator John Cornyn booed at a GOP convention in his own state because of his work on a bipartisan gun safety package. His response to that chilly reception and where things stand with the negotiations.

(COMMERCIAL BREAK)

PAUL: Nineteen minutes past the hour, we're so grateful to have you here. So there is a 70-year-old man in custody now after allegedly shooting and killing parishioners at an Alabama church on Thursday night. SANCHEZ: Authorities say the suspect acted alone and that he occasionally attended St. Stephen's Episcopal church before opening fire at a small groups potluck dinner. CNN's Nadia Romero has the details for us.

(BEGIN VIDEOTAPE)

DISPATCH: We are getting reports of a possible active shooter.

NADIA ROMERO, CNN NATIONAL CORRESPONDENT: Three people are dead after a shooting Thursday night at a church in Vestavia Hills, Alabama, a suburb of Birmingham.

[06:20:04]

DISPATCH: An active shooter incident with injuries, scene is not secure. At least three patients.

ROMERO: Police say, St. Stephen's Episcopal Church was hosting a potluck dinner when the suspect, 70-year-old Robert Smith who was attending the event open fire.

CAPT. SHANE WARE, VESTAVIA HILLS POLICE: At some point he produced a handgun and began shooting, striking three victims.

DISPATCH: Best estimate we have at this time for patients is going to be in the parish hall. The shooter has been held down at this time, but the scene is not secure.

ROMERO: Investigators say after opening fire, the suspect was held down by another person at the event.

DISPATCH: We can't get radio reception. Multiple people down. Subject in custody.

ROMERO: Police identifying the victims as 84-year-old Walter Rainey, who died on the scene, and 75-year-old Sarah Yeager, who died at the hospital. The third victim, 84-year-old Jane Pounds died at the hospital, Friday. The ordeal leaving the community and disbelief.

HUDSON BROWN, LIVES NEARBY: You see it in places you've never been to, people you don't know. And then now you're thinking that could have been one of my friends down there.

ROMERO: Former U.S. Senator Doug Jones has lived in the neighborhood for nearly three decades.

DOUG JONES (D), FORMER U.S. SENATOR: But I think it just goes to show that no community is immune from this kind of gun violence that we see playing out across the country. No one is immune.

ROMERO: So far, investigators have not released of motive. They say the suspect who is in custody acted alone. Police praising the bravery of the person who held down the suspect until they arrived.

WARE: The person that subdued the suspect, in my opinion is a hero. ROMERO: Earlier today, parishioners packed a prayer vigil at St Luke's Episcopal Church about six miles away.

UNIDENTIFIED FEMALE: I think the church has got a lot to mourn.

ROMERO (on camera): When this place of worship turned into a crime scene, the church leaders here tell me they immediately received calls and emails of support from people from around the world. Hundreds of people came out to the prayer vigil to mourn the lives loss. And the bishop says two of the people who were killed, Charles (ph) Rainey and Sarah Yeager were very active in their church communities, and that their fellow parishioners and their families are in mourning. Nadia Romero, CNN, Vestavia Hills, Alabama.

(END VIDEOTAPE)

SANCHEZ: Nadia, thank you.

Despite initial momentum, there are now serious doubts emerging about the Senate passing new gun safety legislation. Our Republican source tells CNN that it's going to be a long time before the text of the bill is ready, despite optimism from some Democrats who believe both sides have made progress.

PAUL: Yeah, and senators don't have an awful lot of time to pass a package because we are heading towards this two week recess that begins next weekend. CNN's Daniella Diaz is on Capitol Hill.

Daniella, good to see you. What is stalling negotiations at this point?

DANIELLA DIAZ, CNN CONGRESSIONAL REPORTER: Christi, it continues to be the same two sticking points that Democrats and Republicans in these bipartisan talks cannot agree on, one of them being the so called boyfriend loophole. Now, under federal law currently, people who have been convicted of misdemeanor domestic violence are prohibited from owning or purchasing guns, but the ban currently only applies to spouses, those who share child and cohabitants not dating partners. So these negotiators are trying to figure out what defines a boyfriend. And that is something they're continuing to work on they can't agree on.

Another provision of the framework that they're trying to figure out is red flag laws. They're trying to figure out funding for incentivizing states to implement red flag laws. However, Republicans such as Cornyn, who is the key Republican negotiator in these talks, he has expressed concerns that this funding is only accessible to states that have red flag laws, for example, his home state of Texas does not. So they're trying to figure out whether that funding could be used for mental health centers. That is another provision that they're trying to figure out that they have not been able to write through. But really the bigger picture here being as you said, Christi, the Senate goes for a two-week recess after this week.

Right now, they have momentum on this issue. They recognize that in the wake of the Uvalde shooting, in the wake of the Buffalo shooting, they have the attention of the Senate to try to pass this law, this legislation and if they don't get something done as soon as possible, they could lose that momentum. For example, if some sort of Supreme Court decision were to strike down and shift their attention. But Cornyn did express optimism yesterday afternoon to the Texas Tribune, he said that they're still on a path to try to come up with something by next week. Of course, Senator Chris Murphy, the other key negotiator here in these talks, the Democrat also is optimistic. So we expect these talks to continue over the weekend. And of course, in- person when they come back next week.

SANCHEZ: We know you'll be tracking the story for us and keeping us updated. Daniella Diaz live from Capitol Hill, thank you so much.

So the lead Republican negotiator on the bipartisan gun safety package was booed at a Texas convention just yesterday. Watch this.

[06:25:05]

SEN. JOHN CORNYN (R-TX): sometimes my job is just simply saying no.

SANCHEZ: Texas Senator John Cornyn told a home state crowd that he "fought and kept President Biden's gun grabbing wish list off the table." The audience still didn't want to hear it. Amid the backlash, Cornyn insists there are certain lines he will not cross in the bipartisan talks, such as an assault weapons ban and new restrictions for law abiding gun owners.

PAUL: Still there, U.S. military volunteers who disappeared in Ukraine. The Kremlin says it has no idea what happened to them despite the picture you see here and some new videos. That's next.

(COMMERCIAL BREAK)

PAUL: 29 minutes past the hour and CDC advisors are voting today on COVID-19 vaccines for Children as young as six months old. Now an FDA panel has approved vaccines by Pfizer and Moderna for emergency use authorization.

[06:30:00]

SANCHEZ: A lot of parents and pediatricians have been waiting for a vaccine for younger kids. Now, the White House says that shots could begin going into arms as early as next week after the CDC gives them the green light. But public health experts worry that some parents still won't get their kids vaccinated.

Shifting our focus now to eastern Europe. A third American listed as missing in Ukraine has been identified as a former U.S. Marine. Grady Kurpasi's wife confirmed his identity to CNN. Close friends say the last time they heard from him was in late April.

PAUL: Late April, that was two months ago. CNN senior international correspondent Sam Kiley is with us live from Kharkiv, Ukraine. Sam, what have you learned about these missing Americans this morning?

SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we know that Grady, who went missing in April was fighting down near Kherson in a completely different area of operations from the one I am here in Kharkiv. Now they haven't -- unlike the other two missing Americans, there hasn't been any evidence as to his whereabouts or indeed whether or not he's even still alive.

But there has been some, if you like, semi-positive developments here with the other two missing Americans who went missing during a ferocious combat about 20 kilometers north of where I am here in Kharkiv on the 9th of this month because they've been paraded, effectively, on Russian TV on video, and photographs have also been shown of them.

Now, we are not showing any of that video because it shows prisoners of war under duress, but we did speak -- I did speak exclusively to the comrade who survived that engagement, and this is the result of that interview.

(BEGIN VIDEOTAPE)

KILEY (voice-over): These two American fighters have their hands bound behind them, they're dressed in uniforms not their own, and they may well have been captured by the very Russians they've been fighting. This as far as it goes is good news for the comrade who last saw a T- 72 tank open fire on his two friends.

(on camera): Does that give you any kind of cause for hope?

UNIDENTIFIED MALE: Absolutely. I wish I could say with a 100 percent certainty that it's not a fake, but I'm -- I have a lot of hope that it's them.

KILEY (voice-over): A former U.S. serviceman, he was in the same battle as Alexander Drueke and Andy Huynh when they went missing in action. He fears Russian reprisals in Ukraine and beyond, and once his identity and voice hidden, he uses the code name Pip. But for the first time on TV, he described what happened on June the 9th, about 20 miles northeast of Kharkiv.

UNIDENTIFIED MALE: A team was sent out on a mission on the 9th, and they showed up in the area of operations, and a full-scaled Russian- armored assault was under way, a hasty defense was set up, two anti- tank teams were set up. Alex and Andy fired an RPG at a BMP that was coming through the woods and destroyed it.

An T-72 then turned its turd and fired upon them, drove a few more meters forward and hit the anti-tank mine that our Ukrainian officer had placed. We suspect they were knocked out by either the T-72 tank shooting at them or the blast of the mine.

KILEY: So far, Russian officials have denied any knowledge of the missing Americans. Two Britons both with U.K. and Ukrainian citizenship were recently sentenced to death on charges of being mercenaries by a so-called court in the Russian-backed rebel area of Ukraine that calls itself the Donetsk People's Republic. They were longstanding members of the Ukrainian armed forces. Huynh and Drueke had served alongside Pip in a three-man team since April. UNIDENTIFIED MALE: As far as I'm aware, we're paid about the same if

not exactly the same as a Ukrainian soldier who is on the front, and money is certainly not my motivation for being here, and I know it's not Andy's and it's not Alex's either.

KILEY: Ukraine has been appealing for urgent supplies of ammunition and heavy weapons. It's also recruited large numbers, the details are kept secret, of foreign volunteers into its international legion.

(on camera): So what advice would you give finally for anybody thinking of wanting to join the legion?

UNIDENTIFIED MALE: Oh, wow. Well, if you have no military background, if you don't have any combat experience, if you expect to come here with air support, intense helicopter support, then stay home because that is not the case. It is the Russian army, and they have massive amounts of artillery, they have massive amounts of armor, and the Ukrainians are giving it their damnedest.

KILEY: Did you make the right call?

UNIDENTIFIED MALE: I'll admit to questioning it once in a while, but I think yes.

KILEY (voice-over): For those captured by Russia, that answer may no longer be quite so positive.

(END VIDEOTAPE)

[06:35:00]

KILEY: Now, as a consequence of the sorts of engagement they talked about there, where a very substantial Russian force overran Ukrainians. We've been talking to a number of Ukrainian soldiers who have been operational in the outskirts, in the outer villages around Kharkiv. Kharkiv is relatively safe, but there's continuous counterattacks being launched by the Russians as they continue to also put pressure further east.

And the message coming from the Ukrainians, both the foot soldiers on the ground and from the president himself is that, we need weapons, we need long-range artillery, they need ammunition, they need support. At the moment, things are very much hanging in the balance.

PAUL: Sam Kiley, we appreciate the report. Thank you so much.

SANCHEZ: Still ahead, if you are in the market for a new car, be prepared. The average car payment now 700 bucks a month. What you need to know before hitting the car lot next. And a quick programming note for you, you can watch an incredible concert from the Hollywood Bowl tomorrow night.

You're going to see stars like Anthony Hamilton, Mary Mary and The Roots, they're going to lift their voices for "JUNETEENTH: A GLOBAL CELEBRATION FOR FREEDOM". It all starts right here at 8:00 p.m. Sunday, on CNN. (COMMERCIAL BREAK)

[06:40:00]

PAUL: So, how does $700 a month sound for a car payment? That is the average price per month with these rising interest rates and the spike in car prices. I mean, it's brutal. It's a brutal time to try and buy a vehicle, Boris.

SANCHEZ: Yes, and you combine that with less inventory. So fewer cars actually on the lots, that means that drivers are paying more with fewer options. CNN's Camila Bernal reports.

(BEGIN VIDEOTAPE)

ROLAND PAHUD, CAR BUYER: This here is the Wrangler, 4-wheel drive.

CAMILA BERNAL, CNN NATIONAL CORRESPONDENT (voice-over): This is Roland Pahud's new jeep. It was a necessity. He says and a quick decision.

PAHUD: I had another car. It was a lot of mileage, and I needed a bigger one.

BERNAL: The jeep was about $50,000, leaving his monthly payment at about $800, higher than the most recent Kelley Blue Book monthly payment average at $712.

MATT DEGEN, SENIOR EDITOR, KELLEY BLUE BOOK: This is a new record for that monthly payment. This is a new record. And then the car -- the new car prices are actually near records.

BERNAL: In the last year, new car prices have gone up 12.6 percent, used cars up 16.1 percent, food, 10.1 percent. And gas up 48.7 percent. But gas prices, not necessarily deterring potential buyers at this southern California car dealership.

RAED MALAEB, GENERAL MANAGER, RUSSELL WESTBROOK CHRYSLER DODGE JEEP RAM: Demand is high, supply is still low, and we're still in chip shortage era.

BERNAL: This paired with the high interest rates making it difficult for buyers.

DEGEN: We don't see prices decreasing much, and even if they do, just keep in mind the interest rates are rising. So the cost of borrowing money is going up, so that just means you're still going to be paying as much or nearly as much as you were even if those prices go down.

BERNAL: Car, home and student loans all higher. Interest rate on a 30- year fixed mortgage have jumped from 2.93 percent to 5.78 percent in the last year.

PAHUD: This is how it looks.

BERNAL: Pahud wishes his interest would have been lower, but says it was his need and want that motivated his new car purchase. Camila Bernal, CNN, Los Angeles.

(END VIDEOTAPE)

SANCHEZ: Still ahead on NEW DAY, why Ghislaine Maxwell says she deserves a much lighter sentence than the recommended 20 years behind bars. Will the judge agree? A legal discussion straight ahead.

(COMMERCIAL BREAK)

[06:45:00]

PAUL: Well, lawyers for convicted sex trafficker, Ghislaine Maxwell, are asking the judge for leniency. And here's what they say, that she should only serve around four to a little more than five years in prison for her role in Jeffrey Epstein's sexual abuse of teen girls. Their argument is that Maxwell, who was convicted in December on five federal charges including sex trafficking of a minor has already had a difficult time in detention, and she shouldn't face a harsher sentence that would be more appropriate for Epstein himself.

Let's remember, Epstein is dead. Here with me to discuss this, CNN legal analyst and criminal defense attorney, Joey Jackson. Joey, so good to see you. Now, we know that she's appearing for sentencing next Tuesday. Probation officials have recommended a 20-year sentence, which is still below the sentencing guidelines for Maxwell, if I understand it correctly, is that right? And what do you think the judge is going to land on this?

JOEY JACKSON, CRIMINAL DEFENSE ATTORNEY: Yes, good morning to you, Christi. So, what happens is, in federal court, you have these sentencing guidelines, and they're just that, right? They're guidelines in order to assist and provide for uniformity of prisoners who are convicted or people who are convicted and become prisoners, you want sentences to be somewhat uniform.

It's always up to the judge, there are many factors to consider, as you noted, probation looked at it and they determined based upon sentencing guidelines, which include your prior criminal history in addition to the current offense, and it should be 20 years. And yes, indeed, that would be below the sentencing guidelines. Let's remember that the sex trafficking charge itself carried 40 years. What her attorneys are doing is noting what you noted that the conditions she's endured in prison have been problematic.

She's been threatened, of course, with her life in prison. In addition to something new, and that was that her upbringing and childhood were particularly harsh.

[06:50:00]

Her father was particularly abusive, and that made her particularly susceptible to the abuse of Jeffrey Epstein. Meaning, just really, his manipulation, et cetera. And so, the judge has a lot to consider. And the judge could very well depart from a sentencing guideline. Remember that it is that, as I've noted, it's not set in stone. It's something to recommend to the judge. And there are two things very briefly, Christi, one is, the judge can depart from the sentencing guidelines, the other is the judge can vary the sentencing guidelines.

So, these are the arguments to be made. Final point, we know she was convicted after a month-long trial of five charges including trafficking and conspiracy. Her lawyers made a motion to dismiss to the judge, the judge said no, but the judge did drop three, right, or two, excuse me, of the five charges. So she'll be really sentenced on three of them. I think the judge will land on a significant sentence, perhaps not even the probationary 20 years, but certainly, it will be a very tough sentence she'll be imposing.

PAUL: So, I want to ask you about former Trump White House trade adviser Peter Navarro as well pleading not guilty to two contempt of Congress charges yesterday after he refused to cooperate with the House Select Committee's ongoing January 6th investigation. But if he's convicted, he'd face a mandatory minimum jail sentence of I think, a month. And as I understand it, Joey, the trial, they're looking at a November trial date for him.

His lawyers are arguing the trial should be postponed until next year because he has a book coming out. Joey?

JACKSON: Yes.

PAUL: What is happening?

JACKSON: That's -- that they made. Not really a good argument to be making to the judge. And if you look at it, how ironic, right? Because we're talking about contempt of Congress. That contempt is really you not appearing before the select committee who was looking at and evaluating what happened that led to the January 6th insurrection, what led up to that? What were decisions that were made? What were the officials doing? And you not appearing, right? Because you don't think that you have to.

You're not producing documents because you don't think you have to. And now you're saying, you don't -- shouldn't have to go to trial because you have a book. It just shows contempt for the process, and as a result of that, obviously, the judge said no. You're still going to trial on November 17th.

He has to appear, and he has to otherwise plead his case at that particular time. He better have a legit defense other than the committee is composed of not many Republicans and I'm privileged, and I shouldn't have to be there. Tough way to go for him.

PAUL: All right, Joey Jackson, we always value your perspective. Thank you for being here, sir.

SANCHEZ: A New Jersey father and a former major leaguer teaming up with the result being a field of dreams in which everyone can play ball.

(BEGIN VIDEO CLIP)

CHRISTIAN KANE, CREATOR, RJWBARNABAS FIELD OF DREAMS: Is what we're trying to redefine. We're doing this because inclusion does matter. (END VIDEO CLIP)

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[06:55:00]

PAUL: Well, there's a town in New Jersey that is home to a special park where everyone can play now.

SANCHEZ: Let's bring in Coy Wire to tell us the story of how this came to be. Good morning, Coy.

COY WIRE, CNN SPORTS CORRESPONDENT: Hi, Boris and Christi. Toms River, they won the '98 Little League World Series with future two-time all- star Todd Frazier, and now it is home to its very own field of dreams where those of all abilities can play and feel like they're part of a winning team too. It was created by Christian Kane, inspired by his son Gavin who suffered a traumatic brain injury in a car accident as a child, and Kane has worked tirelessly to make this dream a reality.

(BEGIN VIDEO CLIP)

KANE: My wife, Mary and I first thought of the idea for the Field of Dreams when we realized that Gavin wanted to actually partake in activities, you know, at local parks. And when we were going there, there was really nothing for him to do, except, you know, go on a big red swing in the corner of a park. And on top of that, he had to wait as all the typical kids were using the big red swing.

So, it was right around that point, we knew that there was a need for helping people with special needs.

MATT MCDONALD, CEO, CHILDREN'S SPECIALIZED HOSPITAL: The hope would be that this would be a model that we can replicate, so that not just children in the Toms River community can have access to this unbelievable playground, but that children across the country would have the same access.

TODD FRAZIER, MLB VETERAN: This is Mecca for these kids. We have a baseball field here, something and what I love dearly. It's true to my heart and now we can get these kids, boys and girls to come out here and get a smile, get a laugh. Do whatever they want to do. This is -- this is their park, this is their big-league opportunity, this is their opportunity to shine and we're going to do everything possible to make them feel at home, make them feel comfortable and hit that home-run every time.

KANE: Gavin's reaction is, you know, as typical Gavin is. It's always a smile, a laugh. To say he's stoked and happy and excited, that would be, I would say, an understatement. The definition of inclusion is what we're trying to redefine. We're doing this because inclusion does matter. And it's just not, you know, something you check off because you have a big red swing in the playground, and he said, well, I met my inclusion quota.

Deep down inside, everyone wants to have fun, no two ways about it. And that's what a complex like this does. It allows people of ranging abilities and ranging ages, to be able to come together, have a laugh, participate, play games and just forget about, you know, the troubles in the world or your -- whatever concerns that you have, you know, on your day-to-day basis.

(END VIDEO CLIP)

WIRE: Now, Christian Kane says that they hope someday Gavin will go on to college and have the life that was somewhat taken away from him. He said when tough things happen like this, it doesn't mean you have to give up, you just have to find a different way of getting to your goal.