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The Situation Room

Inflation Rises to Highest Level in Nearly Three Years; Trump Admin. to Send Americans Exposed to Ebola to Kenya; NY and NJ Attorneys General Investigating FIFA Ticket Prices. Aired 11:30-12p ET

Aired May 28, 2026 - 11:30   ET

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

[11:30:00]

WOLF BLITZER, CNN ANCHOR: Happening now, 11 people are presumed dead in Washington state after a tank with toxic chemicals imploded. Today, crews are working through dangerous conditions to try to recover bodies from the site. Officials say the implosion contaminated the Columbia River, the lifeblood of the Pacific Northwest.

And this morning, a judge in Georgia is moving the trial for the teen accused of killing two students and two teachers at Apalachee High School back in 2024. Colt Gray was 14 at the time. His father was found guilty in March of murder and manslaughter. Prosecutors say he bought the gun his son used in the shooting.

And Dale Earnhardt Jr. is revealing the last text messages he exchanged with Kyle Busch, who died last week from sepsis at just 41 years old.

(BEGIN VIDEO CLIP)

DALE EARNHARDT JR., AMERICAN RACE CAR DRIVER: I was texting with him the day before he passed away about getting together this Thursday to bring his seat for his late model over to my shop because we had agreed that he was going to race our car in the car store.

[11:35:00]

I just really have a hard time believing that he passed. And I think that that's going to take a while you know. I think it's going to take a while, you know.

UNIDENTIFIED MALE: Definitely doesn't seem real.

EARNHARDT JR.: No. It's one of the things you don't want to have to come -- you know, come to terms with and life.

(END VIDEO CLIP)

BLITZER: Dale Jr. also revealed Bush wanted to drive in Earnhardt's iconic number eight car, Pamela.

PAMELA BROWN, CNN ANCHOR: Happening now, Wolf, if you think the cost of living seems more expensive, well the latest government numbers say you're right. Annual inflation is at its highest level in nearly three years, topping 3.8 percent last month. It's also making the divide between high earners and lower income families even deeper.

So, let's bring in our CNN Business Senior Reporter David Goldman to make it make sense. So, David, today's question why is there this growing divide between the rich and the poor in America?

DAVID GOLDMAN, CNN BUSINESS SENIOR REPORTER: It's such an important question because I think we all understand intuitively that rich people make a lot of money and you know people who don't have as much they make less money but it's much more complicated than that and that is why we call it the K-shaped economy because people who get rich, they keep getting richer and people who have less means well it really feels like they're making less every single year and the divide is really growing.

And what is happening here? Well, if you just take a look at the net worth of individuals, people who are making $175,000 a year or more, that's the top 20 percent of U.S. earners. Look at this, they made 25 percent more over the past three years but then if you take a look at the folks who are in the bottom 20 percent making less than $33,000, well their net worth only increased 13 percent and so the thing that's causing all of this, well it's housing, stocks and inflation and this is a really important one that we're going to get to.

But let's start with homes because people who make $175,000 or more, they own 54 percent of the mortgages in the United States. Only 3 percent for the people who make $33,000 or less. So, this puts them at a distinct advantage because we know that homes increase in value and that's where they get a lot of their wealth from. But stocks are another important factor too because look at this, the top 20 percent, they own more than three quarters of the U.S. stocks and so that gives them that big advantage too because we know stocks keep going up and up and up over the past decade.

And then if you take a look at inflation, it isn't true that inflation works for everyone the same way. People who make more money, they pay less inflation than the people who make less. 46 percent was the increase in the cost of living for the wealthiest Americans but it was 57 percent for the bottom 20 percent.

And so, what does it mean? Well, going back to our K, the rich are getting richer and that explains why people who don't make as much money, they feel like they're being left out.

BROWN: Yes, so important. And also, just to follow up with you, you know, we keep talking about how consumer sentiment is low right now, David, but also, we're seeing that consumers are still spending in certain areas and they're not pulling back as much as economists may have thought they would be given the economic circumstances.

GOLDMAN: Right. Well, the question is who is doing the spending, right? Because wealthier Americans, they have more to spend, obviously, but they also know that their investments keep going up, their home values keep going up and that helps them buy more too. And so, if you look at the data by income level, people who are on the bottom of the K, they're not spending quite as much or their growth isn't quite as much as the folks on the top of the K. That's really boosting prices and it's boosting overall economic growth.

BROWN: Really important context here, David Goldman, thank you as always. And if you need to -- David, to make it make sense, you can just email or send us a selfie video of your question to makeitmakesenseatcnn.com. Thanks, David. Wolf.

BLITZER: Excellent analysis. And for 18- to 21-year-olds, most gambling is illegal unless you turn to prediction markets. There are sites that allow users to purchase event contracts, but more simply put, critics say it's a legal loophole and it allows young adults over 18 to make bets on things like sports and pop culture.

Let's go to CNN's senior reporter, Marshall Cohen, who's working this for us. Marshall addiction experts and state officials are warning that this so-called loophole could fuel a public health crisis. What more are you learning?

[11:40:00]

MARSHALL COHEN, CNN SENIOR REPORTER: Wolf, you're right that some are indeed calling this a potential public health crisis, we're talking about prediction sites like Kalshi and Polymarket. You can bet on nearly anything like you mentioned, from sports to elections and entertainment and beyond. Most people probably don't realize that this is not technically considered gambling. They are regulated like financial markets under federal law, like crypto and day trading, and that means they're available to anyone over 18. Critics say this is a loophole because in most states you must be 21 to use a sportsbook and bet on the same exact games.

Now, we've heard from young people, including some still in high school, who say they've become addicted to prediction markets. At first it was fun betting on things that they're passionate about to earn extra cash to pay for vacations and nice dinners.

But addiction specialists say the brain just isn't fully developed at age 18. You take more risks. You might not consider the consequences of all your actions, and experts have warned that this is especially true among young men.

Now, earlier this week, President Donald Trump said he fully supports the prediction industry, and his administration has been aggressively taking steps to stop states from regulating these sites like gambling. In the meantime, Kalshi has voluntarily imposed some safeguards that they say will protect younger users, like encouraging deposit limits or requiring proof of funds. And I actually recently spoke about this with Kalshi's head of product, Catherine Sullivan. Here's what she said. Take a listen.

(BEGIN VIDEO CLIP)

CATHERINE SULLIVAN, HEAD OF PRODUCT, KALSHI: It's more so in terms of suggestions and gentle guardrails, more so than policing our users, which we never want to do. If we see that our younger users are losing a certain amount of money, we start triggering alerts to them. Who are we to really, like, police what people can do once they turn 18? Like, these are the principles with which the country was founded.

(END VIDEO CLIP)

COHEN: Now, Kalshi says only 4 percent of its total trading volume comes from these 18 to 21 cohorts. But, Wolf, consider this. Kalshi sees about $4 billion in total volume every week. Meanwhile, the biggest rival to Kalshi, Polymarket, they became widely available in the U.S. this month. They've been on a marketing blitz. Their ads are all over social media. I've been getting them nonstop on my TikTok. And they've partnered with the very popular influencer Logan Paul, who has a massive following with younger Americans. Polymarket declined to comment for this story.

And, Wolf, for full disclosure, CNN, of course, we have a partnership with Kalshi. We use its data to cover major events. But CNN employees are not allowed to use prediction sites.

BLITZER: All right. Marshall Cohen reporting for us. Thank you very, very much. And by the way, if you or someone you know has a gambling problem, call the National Council on Problem Gambling, the helpline at 1-800-MY-RESET. 1-800-MY-RESET. R-E-S-E-T.

Coming up, Pamela.

BROWN: Well, a new Ebola plan, Wolf. Why the Trump administration is proposing sending Americans who may have been exposed to the virus to Kenya. The CDC is now responding.

(COMMERCIAL BREAK)

[11:45:00]

BROWN: Happening now, the Trump administration says it is focused right now on keeping Ebola out of the U.S. It's now making plans to send Americans who may have been exposed to the virus in Central Africa to new health facilities in Kenya and not bringing them back to the U.S.

Joining us now is Dr. Celine Gounder, an infectious disease specialist and epidemiologist. She is also the editor-at-large for public health at KFF Health News. Doctor, thank you so much for coming on. So, the U.S. has its own specialized network of hospitals that are highly equipped to treat Ebola patients, and they have a proven track record. What are your thoughts on this new facility in Kenya?

DR. CELINE GOUNDER, EDITOR AT LARGE FOR PUBLIC HEALTH, KFF HEALTH NEWS AND INFECTIOUS DISEASE SPECIALIST AND EPIDEMIOLOGIST: We have real concerns. Those of us who have served as Ebola aid workers, who are infectious disease specialists, establishing one of these facilities, first of all, is very expensive. We have spent billions, with a B, over the last 10-plus years to establish these treatment locations across the United States. You also need to have staff go through rigorous training to safely care for these patients.

And so, to erect a facility like this ad hoc at what we hear is an Air Force base in Kenya, in a place where currently they have only a single isolation room capable of handling Ebola patients in the country, to do this in this fashion is really going to discourage people from wanting to go volunteer and serve as Ebola aid workers.

BROWN: And a CDC source working on the Ebola response tells CNN that some officials at the agency actually strongly recommended against this plan to send Americans to Kenya. I'm sure you're not surprised by that. How do you see the risk versus reward of this plan?

DR. GOUNDER: Well, the issue here is that you need to have people respond to the outbreak, to surge people to the region, to contain it and control it. That's how you protect the American people. You would not say to somebody who's, say, a Marine deploying to the Middle East that, well, you're going to have to suffer the consequences of your decisions and you're not going to get to come home afterwards if you're injured.

[11:50:00]

And quite literally, President Trump in 2014 tweeted that people who go to faraway places to help out are great, but must suffer the consequences. And the problem here is if you tell people go serve, but if you get sick, you're on your own, fewer people are going to want to go.

BROWN: Well, and U.S. travelers returning from an Ebola-affected region of Africa will soon be able to fly into New York's JFK Airport for screening. So, right now, passengers are directed to land in just a few cities, Atlanta, Houston or at Dulles Airport outside of Washington. How significant is this addition of JFK?

DR. GOUNDER: Well, it provides an additional site, obviously. I went through similar kind of screening myself when I returned from Guinea after having spent two months as an Ebola aid worker during the big West African outbreak. And it certainly will improve logistics to spread out the returning travelers over multiple sites.

At that time, I was met by a Customs and Border Patrol official at the airplane. They escorted me to a CDC screening station where I was given a flip phone, a thermometer and a symptom diary. They reviewed my exposures, whether I had any symptoms, checked to make sure I didn't have a fever. And then I had to call in to the health department every day to complete my 21-day quarantine at home. And I think that approach worked really well.

In fact, the case of Craig Spencer, he went through a similar protocol as soon as he started to develop symptoms, reported that to the health department and went straight to Bellevue Hospital. No one else, including his wife, who he lived with, was infected.

BROWN: That was quite a process you had to go through there. I'm wondering, just as we wrap this up, what your thoughts are on the World Cup matches coming up. Eleven U.S. cities are hosting them and they begin on June 11th and then will continue for five weeks. Given the international visitors that will flock to these cities, how do these large gatherings impact U.S. health planning?

DR. GOUNDER: Well, unfortunately, the U.S. has no health plan for this. Zero dollars have been allocated by the U.S. government for health preparedness for the World Cup. It's really been left to state and local health departments with no additional resources to figure this out for themselves. In contrast, the federal government has put $625 million into law enforcement and security for the World Cup.

I'm not concerned about Ebola or Hantavirus at the World Cup. What concerns me would be something like a measles outbreak. We have our own issues here with measles in the U.S. We've seen measles in the wastewater in Kansas City recently, for example, and we know we have pockets of low vaccination rates, so we could be actually the source of that ourselves. And then other infectious diseases like MERS, which is another coronavirus, those are the kinds of things that I'm more concerned about.

BROWN: All right. Dr. Celine Gounder, thank you so much. We'll be right back.

(COMMERCIAL BREAK)

[11:55:00]

BROWN: Happening now, the attorneys general for New York and New Jersey are investigating FIFA ticket sales for the upcoming World Cup. They ordered FIFA to produce documents about its pricing practices for matches at MetLife Stadium. Some ticket resale prices have soared more than ten times over and both states are looking into whether public statements from FIFA may have contributed to that. Fans are also complaining they were misled about their seats. FIFA has not commented on this investigation. Wolf.

BLITZER: And a Yorkshire terrier named Tank is back with his owners. Firefighters in Colorado say they got a call that Tank was trapped under a deck.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Hi, buddy.

UNIDENTIFIED MALE: Hey, buddy.

UNIDENTIFIED MALE: There he is.

UNIDENTIFIED FEMALE: Oh, my God. Thank you so much.

UNIDENTIFIED MALE: Hey, buddy.

(END VIDEO CLIP)

BLITZER: Tank looks so happy. I'm so happy for both of them. All of them. The operation included sawing, shoveling, digging, and using a remote camera.

[11:55:00]

Officials said it took a full technical rescue team as well as animal control. Tank was said to be shaken, but otherwise, thank God, he's OK.

BROWN: That was such an emotional reunion there.

BLITZER: It was so sweet, so nice.

BROWN: Glad he's OK.

BLITZER: And as all of our viewers know, you and I, we love those little doggies.

BROWN: We do. We do a lot of dog segments on this show, don't we, Wolf?

BLITZER: Yes, we do. And you know what else I loved? I went to the Bruce Springsteen concert, Pamela, last night at Washington Nationals Park, and it was so powerful, so wonderful. I felt like dancing in the dark.

BROWN: Well, here is a picture. Wow, I don't blame you for wanting to dance in the dark, Wolf. That must have been a lot of fun.

BLITZER: It was a lot of fun, and he was so energetic, so powerful. It was just a wonderful, wonderful few hours of listening to Bruce Springsteen and the E Street Band. They were just great.

BROWN: That's amazing. I wish I had been there with you, Wolf.

BLITZER: Next year, for sure.

BROWN: You'll have to take me next time.

BLITZER: For sure.

BROWN: Next year. I know some other CNN colleagues who went as well.

BLITZER: Because I know, Pamela, you would have been dancing in the dark as well.

BROWN: Absolutely.

BLITZER: Like all of us. Yes, for sure.

BROWN: And I love that some of our songs of the day come from Bruce Springsteen.

BLITZER: Oh, a lot of the songs.

BROWN: Some of our favorite songs for the Situation Room.

BLITZER: He's one of the best. There's no doubt about it. All right. And to our --

[12:00:00]