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One World with Zain Asher

Hegseth & Caine Face Questions on Defense Budget; Hegseth & Caine Testify Before U.S. House Committee; Police Declare London Stabbing a Terrorist Incident; King Charles to Visit 9/11 Memorial in New York Today; Fed is Expected to Leave Interest Rates Unchanged Today; Biles Open Up about Mental Health Prior to 2028 Games. Aired 11a-12p ET

Aired April 29, 2026 - 11:00   ET

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

[11:00:00]

(COMMERCIAL BREAK)

BIANNA GOLODRYGA, CNN HOST, ONE WORLD: Hello, everyone. Live from New York. I'm Bianna Golodryga. Zain is off today. You are watching "One World". Two

of the top U.S. defense officials are on Capitol Hill this hour. Defense Secretary Pete Hegseth and Dan Caine, the Chairman of Joint Chiefs of

Staff, are testifying before the House Armed Services Committee. Let's listen back in.

They are actually taking a break right now. As we wait for them to come back from this break let's bring in CNN's Brian Todd. You've been listening

to this hearing, Brian, and something that's notable from just the first few rounds of questions, is the Secretary of Defense answering asking, will

ask -- being asked how much this war has cost to date with Iran?

And saying that it's $25 billion thus far, and also that he in his prepared statements pitching that historic $1.5 trillion budget. What has stood out

to you thus far?

BRIAN TODD, CNN CORRESPONDENT: That's right, Bianna, that stood out. And he also got a little testy with Adam Smith, the Ranking Member of the

Committee, when Smith kind of grilled him, challenging him on the idea that Iran's nuclear facilities have been obliterated in the previous round of

hostilities with Iran.

They went back and forth on that. Basically, Adam Smith contending that not a lot about Iran's capabilities has changed between the previous conflict

with Iran in the summer of last year and this conflict now. And Hegseth pushing back on that. In addition, Secretary Hegseth was a little defensive

about the criticism overall of the war and the conduct of the war, and even the idea that the U.S. got into the war.

Hegseth also defending the fact that, you know, all these critics are chiming in two months into the war, and he compared it to other conflicts.

Here's a little snippet of sound of what he had to say in his opening statements about that.

(BEGIN VIDEO CLIP)

PETE HEGSETH, U.S. DEFENSE SECRETARY: The biggest challenge, the biggest adversary we face at this point are the reckless, feckless and defeatist

words of Congressional Democrats and some Republicans two months in, I remind you, two months in to a conflict. Lest I remind you, and my

generation understands how long we were in Iraq? How long we were in Afghanistan? How long we were in Vietnam?

(END VIDEO CLIP)

TODD: And as Bianna mentioned, he's going to get a lot of grilling about his push for a $1.5 trillion budget request and a massive infusion, a

supplemental infusion to fund the production of new weapons. And why is he pushing for that infusion for new weapons?

Well, we had recent reporting in recent days from our colleagues, Zachary Cohen and Natasha Bertrand, citing three people familiar with defense

department stockpile assessments, the assessments of America's stockpile of weapons, in addition to experts from the Center for Strategic and

International Studies.

Basically, saying that the U.S. military has significantly depleted its stockpile of important munitions since the Iran war started, possibly

creating a near term risk of running out of weapons in the event of a future conflict that could come in years ahead.

Specifically, you see that graphic there, according to our sources, and according to the Center for Strategic and International Studies, over seven

weeks of war ending on April 21st the U.S. military has expended at least 45 percent of its stockpile of precision strike missiles, at least half of

its inventory of THAAD missiles. These are missiles designed to intercept ballistic missiles.

And they've expended nearly 50 percent of their stockpile of Patriot air defense interceptor missiles that's according, again, to our sources and to

CSIS, the think tank in Washington. Now, in the short term, according to our sources, the U.S. does have enough bombs and missiles to engage in

combat in Iran, but it could take years before those stocks are ramped back up.

And you know, there's a real question as to whether the U.S. would be able to successfully confront an adversary, possibly like China within the next

3, 4, 5, years, given the depletion of those stockpiles. We should note that the Pentagon has sent a statement to CNN saying that the military,

quote, has everything it needs to execute at the time and place of the president's choosing.

Bianna also, looked for him to get questions about his very controversial personnel moves in recent days.

[11:05:00]

He just last week, fired or maneuvered out the Navy Secretary John Phelan. He previously had maneuvered out a very popular and competent General,

General Randy George, who was the Army Chief of Staff. He no doubt Bianna will get questions about those very controversial moves.

GOLODRYGA: Yes, we're expecting him to get questions specifically related to that in the mass firings that we've seen over the last few weeks. Also,

General Caine is stressing the need for more drones and warships. And as noted, this comes as we are getting more and more reports.

And even the vice president reportedly expressing concern about the rapid depletion of some U.S. munitions right now in this war. Talk more about

what we can expect to see and hear from both men as they defend this $1.5 trillion budget request.

TODD: Well, they're going to be defending the request for that money. They're going to probably talk about the build-up of more munitions, as you

mentioned, as the vice president has voiced concern over. They are also going to be probably defending the very aggressive blockade of Iranian

ports and the aggressive maneuvers of the U.S. Navy in recent days.

We should note that the Navy has intercepted, and the Marines also have intercepted at least three, and possibly, I think now, four large Iranian

linked tankers and cargo ships, not just in the Persian Gulf, but also extending out into the Indian Ocean. They've been very aggressive in

intercepting these vessels.

General Dan Caine has said that at least one of them was carrying sanctioned Iranian oil. So, you know, again, they're going to push back on

the idea that they're being very aggressive with the blockade and being overly aggressive maybe in intercepting these vessels. That blockade Bianna

is going to be a real point of contention.

There is reporting in recent days that the U.S., or the Trump Administration, is looking to tighten that blockade and make it even more

restricting. And you know, they'll get questions about just how tough that's been on the Iranian economy and all of that?

So, it's just this -- these are going to be very highly charged hearings today with the House Armed Services Committee on Thursday with the Senate

Armed Services Committee. They've got to defend the blockade. Their plans for the blockade, they will be grilled also on how they are proceeding to

de mine the Strait of Hormuz.

That was a big question a few days ago, you know, because they've talked about de mining it. Well, they haven't given too many specifics on exactly

how they're doing it? What vessels they're using? The Littoral combat ships, that they're using to do that, and just their methods of doing that.

There is just a lot to unpack and go over in these hearings regarding the unclogging of the Strait of Hormuz, the blockades, the interceptions, and,

of course, the request for more money and more munitions. This is all during the ceasefire, also Bianna a ceasefire that could end maybe in the

coming days.

GOLODRYGA: Right. The reporting suggests the president is considering just extending the blockade indefinitely now, as he is not happy thus far, with

the counter proposals that Iran has put forward. Brian Todd, thank you so much.

Well, CNN Military Analyst and Retired Air Force Colonel Cedric Leighton joins me now. Cedric, it's good to see you. So just in response to the $25

billion that we now know is the total cost of the war thus far, in its eighth week.

How does that -- how does that rate to you now, two months into this war? Is that more than you would have expected less? And what does that say

about how much longer the war can go on at this cost?

COL. CEDRIC LEIGHTON (RET.), CNN MILITARY ANALYST: Yeah, Bianna, it's great to be with you. One of the things that I've noted is, you know, with this

$25 billion seems to be a very excessive amount of money, given what the accomplishments have been so far.

Tactically, the U.S. military has done a phenomenal job in terms of going in after all of the you know, different command and control targets, the

leadership targets, the military targets that you know, from a military perspective, they've done a fantastic job that way.

But the overall aims of the war have basically been changing as you know, we've progressed throughout these eight weeks. And this expenditure of

money also reflects the expenditures of things like the Tomahawk missiles that were launched against military targets.

You have, of course, the some of the situations that have resulted in faulty targeting, especially at the girls' school, being targeted near the

Iranian Revolutionary Guard Corps, Navy Headquarters that you know, of course, is a terrible incident. No amount of money, I can really account

for something like that.

But what it does tell you, from a money perspective, is that this is going to be probably a very long conflict. If it continues on this path, on this

trajectory, and it is also going to cost a heck of a lot of money that was otherwise not considered in future budget, in the past budget request for

future years.

[11:10:00]

And so that is something that is, I think, going to be a considerable issue going forward. And it reflects, I think, basically, poor planning on the

part of the Pentagon. And maybe they were caught by surprise by the administration's efforts to go after Iran at this particular moment in

time.

GOLODRYGA: Jules Hurst, who is a Senior Pentagon Official who is performing the duties of Comptroller at the Department of Defense, was actually the

one who had said and told lawmakers that this war thus far has cost $25 billion. He said most of that expenditure has come through the use of

munitions.

And this as there are increasing concerns about the fast depletion of U.S. stockpiles and munitions. You have Pentagon officials saying that there is

nothing to be concerned about. Reportedly, the vice president has also echoed his concerns about this. What are some of the lessons learned? And

if fighting does resume, do you expect it to be at such a kinetic scale as it was the first few weeks of this war?

LEIGHTON: They're going to definitely try to keep it at that same level of intensity, where you had basically thousands of targets being prosecuted in

a very short compressed time frame. So, with that Bianna, you know, what you're looking at is the realm of the possible. So, there are, you know,

obviously munitions that are still available for use by the military in you know this war with Iran, but the question is, how quickly are they being

depleted?

And of course, the actual answer to that is classified. But what we can discern from, you know, what we know so far, is that there is not a

limitless or endless supply of these kinds of munitions. And you know, when you look at offensive weapons, you know, such as the Tomahawk missiles,

those are not only very precise munitions, but they are also munitions that aren't produced in great quantities.

You know, basically, you're talking somewhere around 60 or so a year and when you deplete them at the rate of 120 or so every eight weeks, that

obviously tells you that that's going to be a major problem in terms of keeping that stockpile active and also making it something that is useful.

So that you know, as far as the Tomahawk is concerned, that's one particular element there. Other weapon systems include things like the PAC-

3 missiles that are used by the Patriot from a defensive perspective. So those are also important, because the way Iran is fighting this war is

basically an asymmetric war.

And one of the things that I think hasn't happened from a planning perspective is the really taking into consideration the idea that the

Iranians are going to move into an asymmetric direction, using drones, using IEDs, potentially using cyber as a means to go after targets, not

only along the Gulf Coast. You know, as far as the Arab States, they are concerned.

But when you look at weapon systems like the Patriot which are used to protect assets, U.S. assets, as well as national assets, along among the

Gulf States, that becomes a critical component. And if you don't have enough of those defensive weapons, you put at risk entire societies and

entire economies.

And that is exactly what has happened here, especially with the closure, the de facto closure of the Strait of Hormuz. So, the force mix that has

been deployed has been effective in certain ways, but it has also evidenced some vulnerabilities in terms of not only how it's deployed, but also the

types of weapon systems that are deployed.

In essence, meaning, when you use a Patriot missile, you are spending somewhere upwards of 3 million or so dollars to go after what potentially

could be a $30,000 drone. So that monetary imbalance, that budgetary imbalance, is something that eventually comes home to roost.

And that is going to be a significant issue, not only from a budgetary standpoint, but also from an operational standpoint. And I think that's

going to be, I think, a considerable issue for the Pentagon to deal with as it plans for future wars, and more importantly, in the short term, what's

next from an operational perspective for Iran.

So that means that potentially operational plans will have to change the types of things like air tasking orders, which basically say, you know

where the aircraft are going to fly and what targets they're going to hit, that may have to be adjusted based on the types of munitions that are going

to be available at this particular moment in time.

[11:15:00]

GOLODRYGA: Yeah, drone technology has really redefined modern day warfare, that is for sure, and it's playing out in real time. Colonel Cedric

Leighton, thank you so much. Great to have you on as always. Former FBI Director James Comey is expected to turn himself in at a Federal Court

today, after the outspoken critic of President Trump was indicted for a second time.

The case stems from a photo Comey posted on social media last May showing the numbers 8, 6, 4, 7, spelled out in sea shells. The Justice Department

says it amounts to a threat to Trump, the 47th President. Comey deleted the post saying he didn't realize some people associated the numbers with

violence.

(BEGIN VIDEO CLIP)

JAMES COMEY, FORMER FBI DIRECTOR: Well, they're back this time about a picture of sea shells on a North Carolina Beach a year ago. And this won't

be the end of it. But nothing has changed with me. I'm still innocent, I'm still not afraid, and I still believe in the independent federal judiciary.

So, let's go.

(END VIDEO CLIP)

GOLODRYGA: Crime and Justice Correspondent Katelyn Polantz joins us now from outside the Federal Court in Alexandria, Virginia, where Comey is

expected to appear. Once he does appear, what can we expect to see? What will the process be?

KATELYN COLLINS, CNN CRIME & JUSTICE CORRESPONDENT: Bianna, today is the day that Jim Comey will be arrested and processed and face a judge for the

first time in this second criminal indictment of him brought by the Justice Department under this Trump Administration.

Now, Bianna that picture of the sea shells that would have been taken hundreds of miles away on the beaches of North Carolina, that's where the

case is charged, in the Eastern District of North Carolina. But Comey lives here in Northern Virginia, and so his first moment in court in this case,

it will be back here in the Eastern District.

Now, this is the court where Comey previously faced charges that have been dismissed. Those charges that was about perjury. This case, it's about

making a threat, a threat on the president. The Justice Department says they take this very seriously, and they investigated Comey for several

months.

Today in court here in the Eastern District of Virginia, it will just be an initial appearance, a first time that Comey gets to face the judge hear his

charges and that he will have some level of discussion with his attorneys. The judge may ask the Justice Department some questions, but it could be

quite a short hearing before the case moves over to the Eastern District of North Carolina.

That's where Comey will get to fight this case much more seriously and much more extensively. And the Justice Department will have to defend it as well

the charges as they have written them, as they have gotten them through the grand jury.

Those proceedings happen at a later date, and that's a very different court than here in the Eastern District of Virginia. This is a case, though, that

is going to be fought quite extensively by James Comey and his team.

We already know that, because there are several people in the legal community in First Amendment protection groups coming out and criticizing

this as another one of a series of retribution cases that the Justice Department has wanted to bring against people Donald Trump doesn't -- don't

-- people that he does not like.

In this particular case, Bianna, there is a lot of criticism already that this type of post on social media would be free speech that could be

protected and that Comey himself says he never intended any harm, Bianna.

GOLODRYGA: Yeah. And I would imagine, once again, Comey would be using the defense vindictive prosecution, which he did in his last case that was

brought down by the DOJ and ultimately dismissed. Katelyn Polantz, thank you so much.

Well, at this hour, Kevin Warsh is just one vote away from becoming the next Federal Reserve Chairman. The Senate Banking Committee just approved

his nomination, so now the full Senate can vote on it before Jerome Powell's term ends next month. That vote is expected to pass, but CNN has

learned Senate Democrats still plan to press Warsh on conversations he's had with President Trump about interest rates.

Matt Eagan joins us now from Washington with the details. So Matt, this is all but a done deal at this point. Now he does have the votes to be

confirmed, but what can Democrats do in terms of continuing to press him about their concerns?

MATT EGAN, CNN SENIOR REPORTER: Well, Bianna, it does increasingly look like Kevin Warsh is going to take over as the new Chairman of the Federal

Reserve. And yes, Democrats have raised questions and concerns about just how independent he will be?

This is a critical issue. As you know, fed independence is just a corner stone of economic policy and lawmakers want to make sure that Warsh makes

decisions on interest rates based on the economic data, not on the political calendar.

[11:20:00]

And that is something that Warsh has said that he will do. Now this is one of the intriguing subplots at today's Federal Reserve meeting here in

Washington, because it does look like it will be the last one with Jerome Powell at the helm.

And there is this drama, this succession drama at the Fed, specifically over whether or not Jerome Powell will leave the Fed when his term as Chair

expires in just a couple of weeks. He does have that option, because he has a separate term on the Fed's powerful Board of Governors, and that does not

expire until 2028.

Now, normally this isn't even an issue, right? Every single Fed Chair since 1948 has left the Fed and chosen not to stay on the Board of Governors, but

obviously we've left the world of normal quite a while ago. And former colleagues of Powell and fed watchers, they tell me they do suspect that

Powell will decide to stick around, and that's really for two reasons.

One, because he's a fierce defender of Fed independence, and he could view this as a way to protect that independence. But also, he could view this as

an insurance policy of sorts against the potential for the Trump Administration to reopen that criminal investigation into Powell himself

over those costly building renovations here in Washington.

Now, Powell, he has that option. We do know that just last week, Trump officials said they were dropping that criminal investigation. However, it

hasn't gone away altogether, right? It's really been punted to the Inspector General over at the Fed, and Trump officials have said that probe

could get reopened, depending upon what the IG report says.

Now, Powell himself, just last month, he laid out what it would take for him to step down from the board? And he said at the time, he said, I have

no intention of leaving the board until the investigation is quote, well and truly over with transparency and finality, and it really remains

unclear whether or not that criteria has been met.

So, Powell will surely face questions today on this matter. It's not clear whether or not he's going to answer them, whether or not he's going to tell

us what he plans to do? But Bianna, he's going to have to say something soon, because his term as chair expires in just about two weeks. Back to

you.

GOLODRYGA: Matt Egan, thanks so much appreciate it.

EGAN: Thanks Bianna.

GOLODRYGA: Elon Musk is expected to take the stand again today in the lawsuit he brought against OpenAI. Musk joined Sam Altman and Greg Brockman

to start OpenAI as a non-profit. Musk says the other two co-founders changed it to a for profit entity when they saw how popular it became.

OpenAI's lawyer says Musk is just upset because he was not allowed to have full control of the company. We'll have much more on this in the next hour.

And to another alarming development, one man has been arrested after a stabbing attack that left two people injured in North London. An emergency

volunteer groups as a man with a knife was seen trying to stab members of the Jewish community there. Live pictures of the scene that you're looking

at right now. Police say the suspect had a history of violence and mental health issues. Officials also declared it a terrorist incident.

(BEGIN VIDEO CLIP)

LAURENCE TAYLOR, HEAD OF METROPOLITAN POLICE COUNTER TERRORISM POLICING: Metropolitan police officers responding to the incident were also attacked,

leading to the tasering and arrest of a 45-year-old man. He was arrested on suspicion of attempted murder, and he remains in police custody.

Counter terrorism policing are now leading the investigation. I can also confirm that this has now formally been declared a terrorist incident. Our

highly specialized teams of officers are working with the Metropolitan Police to progress this investigation quickly.

(END VIDEO CLIP)

GOLODRYGA: This is just the latest in a wave of anti-Semitic attacks in London. CNN's Jomana Karadsheh reports from the scene.

JOMANA KARADSHEH, CNN CORRESPONDENT: About a couple of hours ago, we were driving back from an interview with a Rabbi at a synagogue close by. His

synagogue was attacked recently. And as we were driving up towards Golders Green, this predominantly Jewish area in North London, we could hear

choppers up in the sky.

We could hear and see the police sirens and the emergency response. So, our team just got out of the cab and ran over to see what was going on. And

since then, of course, we have had those statements coming out from the Jewish charity, the sham ring that runs the neighborhood watch patrols, as

well as the MECC police, in the last few minutes as well, saying that two Jewish people were stabbed in this attack.

They were a 30-year-old and a 70-year-old man according to the police. They are in stable condition. The suspect, according to the MET, tried to also

stab police officers. He was tasered and he was taken into custody. They say that he's a 45-year-old man. They are working to establish his

nationality, his background, any links he might have.

[11:25:00]

This is being led by the counter terrorism police as this investigation is ongoing. I mean, -- were saying Becky that the attacker was running down

Golders Green Road with a knife looking to stab Jewish members of the public.

And keeping in mind, this is coming after that spate of anti-Semitic arson attacks that we have seen around London since the end of March, that has

very much put the Jewish community on edge, to say the least. Those attacks we don't know again, if this is linked to what is going on here? What has

happened here?

Those attacks we were claimed by a group that we've not heard of before. The British authorities have said that they are investigating its possible

links to Iran and whether Iranian proxies may have been used to carry out those arson attacks.

Speaking with members of the Jewish community, speaking with the Rabbi earlier, you know he was saying they are shocked by what is going on, but

not surprised. And the fear that we've heard from people here is that this sort of violence is becoming normalized. You know, after the arson attacks,

everyone was saying, thankfully, no one was hurt today, two people were stabbed here.

GOLODRYGA: Once again, the Jewish community there in London reeling. Thanks again to CNN's Jomana Karadsheh for that report. And still ahead, toasts

jokes and a talk of a shared destiny. Britain's Royal couple attend a state dinner at the White House. We'll have more on King Charles' first state

visit to the U.S. when we return.

(COMMERCIAL BREAK)

GOLODRYGA: King Charles and Queen Camilla are in New York to visit the 9/11 Memorial and meet families of the victims. The Royal visit was capped off

by a formal state dinner at the White House last night where the King turned on the charm offensive, presenting President Trump with the original

bell from a World War II British submarine named HMS Trump.

CNN's Richard Quest is at the 9/11 Memorial in lower Manhattan and joins us now. And Richard this coming as we mark the 20 -- Richard, can you hear me?

OK. I believe we lost Richard's connection there.

[11:30:00]

We're going to take a quick break and reconnect and come right back.

(COMMERCIAL BREAK)

GOLODRYGA: All right, we've regained connection with Richard Quest, who is in Lower Manhattan at the 9/11 Memorial, where the King and Queen are

expected to visit a little over an hour with President Trump. And a memorable visit this year, especially as we mark 25 years in September,

Richard of the horrific attacks that forever changed the country, forever changed the world.

And something that the King himself noted in his comments last night and yesterday, there before Congress, reminding everyone in the world that the

only time that Article V was invoked was following those attacks.

RICHARD QUEST, CNN ANCHOR, QUEST MEANS BUSINESS: Indeed, the reality is that this moment is probably the most solemn of all of the visit by their

Majesties. It's not the first time that they've been here. Back in 2005 on the -- they were there. He was then the Prince of Wales. She was the

Duchess of Cornwall. They visited the 9/11 Memorial.

And of course, one of the things that keeps coming back is the phrase that the late Queen Elizabeth used in the memorial service that was held here in

New York after the atrocity, when her Late Majesty said in her message that grief is the price we pay for having loved, and that's one of the core

phrases in her senses, the core quote that has always been used ever since.

So, this first part of the visit to New York will be very serious. It will be very solemn, and then their Majesties go back to their more normal.

There will be a literature, there will be some nature, there will be a variety of cultural and trade events.

[11:35:00]

But the focus, I think by far, is what's going to be happening here down in Lower Manhattan at the 9/11 Memorial.

GOLODRYGA: And Richard will be covering it for us as well. Thank you so much, Richard Quest. All right, let's get you some of the headlines we're

watching today. Top Pentagon officials are facing questions from lawmakers for the first time since President Trump launched the war in Iran more than

two months ago.

Defense Secretary Pete Hegseth called Congressional Democrats the biggest adversary that the U.S. is facing, and he claimed Tehran's nuclear weapons

have been obliterated. Former FBI Director James Comey is expected to turn himself in at a federal court today after he was indicted for a second

time.

Case stems from a photo Comey posted on social media last May showing the numbers 8, 6, 4, 7, spelled out in sea shells. The DOJ says that it amounts

to a threat to President Trump, the 47th President.

The U.S. Supreme Court has tossed out Louisiana's long contested congressional map as an unconstitutional gerrymander. The decision could

have implications for this year's midterm election. The court's decision scraps a map that had added a second black and Democratic lawmaker to the

state's Republican delegation.

President Trump posted this image on social media warning Iran. Quote, they better get smart soon. Meantime, sources say Iran is expected to give a

revised proposal to mediators in Pakistan in the next few days after Trump rejected an earlier proposal to end the war.

For more on efforts to revive peace talks let's bring in Nic Robertson, live from Islamabad. So that initial proposal that the president rejected

Nic included ending the closure of the Strait of Hormuz, opening it back up for business that being part one. Part two, being later, at some point,

renewing nuclear negotiations.

The president said that was delivered in bad faith, and that's not something he wants to pursue. Now the president is awaiting a second

proposal from Iranian officials, as reports suggest he is willing to prolong this blockade for a significant period of time. What are you

hearing from your sources Nic?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: We heard from Pakistan's Prime Minister today, potentially here, when he was speaking to

his cabinet, because this quote was made public, a sort of a public nudge to the Iranians, a sort of a politer version of President Trump's no more,

Mr. Nice Guy.

The Iranians need to sort of get their act together the president's message. The Pakistan's Prime Minister saying that the Iranian Foreign

Minister who was here over the weekend, of course, had promised to call him. And this seems to be a reference to, you know, the ongoing backward

and backward and forward nature of the conversations.

And I think perhaps that's a good way to understand the mediation efforts and how the U.S. and Iran are talking to each other. There is a sense of

sort of discrete moments where, you know, where -- where ideas or positions are communicated and then answers go back, but I think it's more of a flow.

You know, there's a lot of conversations that go on back and forth, is my understanding, at least. But where does it stand? I mean, President Trump

has alluded to it last night in his speech the banquet, referencing King Charles saying that Iran should not have a nuclear weapon.

So clearly, that issue that was going to be the issue that was left until later, is very much on the president's agenda still. So, is there some part

of the nuclear issue? Perhaps not the commitment about enrichment, or not the access to highly enriched uranium, which seems to be the most

contentious part, or at least the United States, access to the highly enriched uranium, which seems to be the most contentious part.

Are there other parts of a potential nuclear agreement? Things that were discussed when J.D. Vance was here a couple of weeks ago, when there was, I

understand, quite a lot of agreement on the nuclear issue. Could that then become part of what of a package that Iran puts forward that will get

President Trump to endorse it, rather than send it back, as he did last time.

I don't think anyone thinks there's going to be a complete deal, big all in one deal for everything, because some of the nuclear issues do remain

contentious. But I think we get the sense from President Trump that while he says, you know, he's got plenty of time and he'll keep the blockade in

place, he is really keen, publicly, keen, to get this answer from Iran, to keep pressure on them.

And it does sort of get to concerns and issues that we hear about the Ayatollah, the Supreme Leader in Iran. What is the access for Iranian

negotiators to him to get his direct message?

[11:40:00]

Are the hard liners in Iran interfering? I think this is perhaps a picture we may get more information on in the coming days.

GOLODRYGA: All right. Nic Robertson, thanks so much, as always. And still to come for us, we take a look at the markets after Kevin Warsh moved a

step closer to being the next Federal Reserve Chairman ahead of the Fed's latest interest rate decision.

(COMMERCIAL BREAK)

GOLODRYGA: All right. Welcome back. Let's take a look at where the U.S. markets are this morning, right now. Red arrows across the board, the DOW

down just six tenths of a percent, the S&P500 basically flat and the NASDAQ as well. This as Kevin Warsh moved a step closer to becoming the next Fed

Chair.

And in a couple of hours, we'll get what's likely the last interest rate decision of Chairman Jerome Powell's tenure. Let's bring in Betsy

Stevenson. She's a Professor of Public Policy and Economics the University of Michigan, and was the Chief Economist at the U.S. Labor Department.

Betsy, it's been a while since I've talked to you. Good to have you back on my friend.

So as the Fed here is assessing the risks to both sides of its dual mandate, it is largely expected to keep rates unchanged. This as gas

prices, I think, are hitting their highest levels, definitely since this war began, but I think for over the last few years as well, $4.23 a gallon.

Is this the right call at this point in your view, to leave rates unchanged if that's where we end up?

BETSY STEVENSON, PROFESSOR OF PUBLIC POLICY, UNIVERSITY OF MICHIGAN: You know, I think that they will leave rates unchanged. And I think that is the

right call for right now. We do see a labor market that is slowing and putting downward pressure on inflation.

You know, so we're not seeing a lot of people being fired, and we're not seeing wage cuts, but we are seeing some companies starting to announce

benefits cuts, which is a form of compensation cut that is deflationary.

And, you know, everybody has heard this is a low, higher, low fire environment, so it's just it's not a strong labor market. And that's giving

them a little bit of cushion to think that the market itself is going to help bring encounter that inflationary pressure. And the oil prices is

really going to lead to a one-time jump in prices, rather than ongoing inflation, unless it triggers something like a wage price spiral.

[11:45:00]

GOLODRYGA: So, then how are we supposed to extrapolate from projections from oil experts then that, even if the war ends tomorrow, the impact from

the closure of the Strait of Hormuz and everything that we're seeing around the world, which the U.S. thus far, has been mostly insulated from that

that will be prolonged, perhaps until even the end of the year? How do economists weigh that?

STEVENSON: Look, I think there is no doubt that we're having higher inflation this year. Everybody would agree it's going to be higher

inflation than what the Fed was predicting for 2026 a year ago. You can go back to the March projections, and you saw that they were hoping for lower

inflation in 2026 we're not going to get it.

We may not even really get it in 2027 so there is an inflationary worry. So, what should the Fed do right now today? I think that at this time where

there's a transition in who the Fed Chair is going to be, it's a really good time to emphasize the importance of making data driven, politically

independent decisions that balance the dual mandate of price stability and maximum employment.

That sounds like, you know, wonky reiterating, but that's the key. And if Kevin Warsh just has the president whisper a little too frequently in his

ear and he starts making politically driven decisions, rather than data driven decisions to balance the two mandates. Well, that's when inflation

is going to be off to the races.

GOLODRYGA: He has quite a long resume, though, and as we heard during his congressional hearing, there a lot of supporters as well that have spoken

to his experience through the financial crisis. He knows the markets well. He knows the fed well.

All of that said, he is in a position where you have a President of the United States who is exerting a lot of pressure on the current Federal

Reserve Chairman, on the current Reserve Chairman's predecessor, and I would imagine that will be the case for Jerome Powell's successor as well.

And it looks like that will be Kevin Warsh. Do you think that he's up to the job and up to defending the independence of the fed the way that Powell

has?

STEVENSON: You know, the thing that has marked the Trump Presidency is uncertainty. Nobody really knows what's going to happen at any given

moment. And Warsh is another really uncertain guy. Absolutely, on the one hand, he looks just like Jerome Powell. He looks like a guy who is

conservative and really an inflationary hawk.

And that's who Powell was. Now you've seen President Trump is not very happy with Jerome Powell. Will he end up not very happy with Kevin Warsh?

Or will Kevin Morse decide that he doesn't want to get the kind of pressure and animosity from the president that Chair Powell is frankly, shown

enormous courage in the face of?

Is Kevin Warsh going to be up to that kind of courage? I don't know. I do believe he has the technical chops to do the job. I think that's the open

question is whether he's going to be willing to stand up to the president.

GOLODRYGA: And it's looking especially if Kevin Warsh is confirmed within the next few days or weeks, that Powell's term as Fed Chairman will end and

we will have a new Federal Reserve Chairman in time for the next Feds meeting in June.

But Jerome Powell has a decision to make as to whether he remains on the Governor's Board, which that term expires in January of 2028? How

significant is that decision Betsy? And what does it signal if he decides to stay?

STEVENSON: I think it's a very significant decision. So, if he decides to stay, he's basically not giving the president another seat. And I think he

would only do that if he was truly worried about the independence of the Federal Reserve system.

I think it's really important for everybody to understand that Jerome Powell is a Republican and a conservative, but he's sort of an old school

conservative, and that he believes in the institution. And the institution is independent central banking. And he has not been willing to bend one

tiny bit on that belief in the independence of central banking.

And I think if you see him deciding to stay on it's because he thinks that's necessary to preserve the integrity of an institution he

fundamentally believes in.

GOLODRYGA: Quickly Betsy explain to our viewers because this has become a norm that we've just gotten used to and assumed that the Federal Reserve's

independence is what's to be expected here in the United States? Explain to our viewers why that's so important and what happens if that independence

is shattered?

[11:50:00]

STEVENSON: Well, you know, if you go back to the 1970s people been talking a lot about that stagflationary pressure we faced. Part of that came

because the Fed was under a lot of pressure to declare inflation was over, cut rates. They're not a problem here anymore. And then what happened was

they got runaway inflation.

And that runaway inflation happens when you and I and everybody out there start to expect that, you know, inflation is going to be prices are going

to increase five, six, or maybe even just four or 5 percent a year. But then we start negotiating our employment contracts on that we start

expecting it in terms of raising rent.

If you're a property owner, you're going to start saying, well, we're going to raise the rent 5 percent every year. And we bake in that ongoing

inflation is very hard to break people's expectations when they start to expect ongoing inflation.

And that is the reason you have to have independence is because sometimes you have to accept a slowing economy to break the back of inflation. And no

president ever wants that.

GOLODRYGA: Yeah. All right. Betsy Stevenson, so important. Great point. Thank you, as always, for joining us.

STEVENSON: Great to talk with you.

GOLODRYGA: And still to come for us, one of the most successful athletes of all time, Simone Biles is sharing her experience of tackling mental health.

We'll bring you her story just ahead.

(COMMERCIAL BREAK)

GOLODRYGA: Well, Superstar American Gymnast Simone Biles is opening up about her mental health. The 11-time Olympic Medalist says her experience

at the 2020 games in Tokyo was a pivotal moment. Biles experienced a mental block known as "The Twisties" during the games and pulled out of several

events. The 29-year-old told our Amanda Davies, she is getting the therapy that she deserves.

(BEGIN VIDEO CLIP)

AMANDA DAVIES, CNN WORLD SPORT: As time has gone on with a bit of space and distance from what happened in Tokyo. How do you view it now?

SIMONE BILES, 11-TIME OLYMPIC MEDALIST: Well, I think it was very good globally to have that conversation on the topic of mental health. But other

than that, I feel like it showed the realness to me, because everyone thought I was a robot. She's not real, but it's like, down to the core, I'm

just like, you guys, I'm real.

There's rawness to it. But most importantly, it got me the therapy that I deserved. And I'm still currently in therapy. And now I look at it as being

courageous and not so much a weakness. Which before that was not the case.

DAVIES: How hard in that moment was it to find the strength to say what you needed to say and do what you needed to do?

[11:55:00]

BILES: Yeah. I would say it was really difficult because we're not somebody or gymnasts aren't viewed as people who have weaknesses, and that was the

first time that weakness was displayed on a global stage like that.

DAVIES: But is it a weakness?

BILES: I mean, I guess I would say vulnerable then, but I had a lot of help, and my group, my core group, was really helpful in letting me know

that its OK people go through this and you're just human.

(END VIDEO CLIP)

GOLODRYGA: Biles, who is the most decorated female gymnast of all time, is taking a break from the sport, but says there's a 50-50, chance she will

compete in the 2028 Games in Los Angeles. We'd love to see her do that. All right, stay with CNN. I'll have more "One World" after the break.

(COMMERCIAL BREAK)

END