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Latest News On The Federal Reserve; Daylight Savings Time; Story Of Two Paragliding Pilots. Aired 4-4:10a ET
Aired March 10, 2023 - 04:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COY WIRE, CNN 10 ANCHOR: Hello, everyone. Hope you`re off to a great start to this little slice of heaven week called Friday. The weekend is upon us,
but we`re gearing up for one more epic data this week, so let`s get it done. I`m Coy Wire.
This is CNN 10. But we`re down to just nine minutes and 45 seconds left, so let`s go. We start with the latest news on the Federal Reserve System, the
central banking system of the United States. The Federal Reserve, or simply the Fed, performs five functions to help the U.S. economy operate optimally
and keep the U.S. financial system stable.
But one of its most important functions is analyzing financial markets in the U.S. like unemployment rates and inflation. Inflation, which is an
increase in the general price of goods and services, has been high for quite some time in America.
And despite its attempts to bring it down, the Fed is seemingly having a really tough time getting it to calm down. One of the ways the Fed can
bring inflation down is to raise interest rates, making it more expensive for people and businesses to borrow money.
So, it essentially deters people from spending. That, in theory, then brings the price of those goods and services back down. So, with inflation
still high, the Fed is considering raising interest rates yet again. And that would impact a lot of us, and not just in the piggy bank.
Listen to this exchange between Senator Elizabeth Warren and the Federal Reserve Chair Jerome Powell when Warren asks Powell, what could happen if
they raise those interest rates again.
(BEGIN VIDEO CLIP)
SEN. ELIZABETH WARREN, (D) MASSACHUSETTS: Chair Powell, if you hit your projections, do you know how many people who are currently working, going
about their lives, will lose their jobs?
JEROME POWELL, FEDERAL RESERVE CHAIRMAN: I don`t have that number in front of me. I will say it`s not -- it`s not an intended consequence, but --
WARREN: Well, but it is, and it`s in your report. And that would be about 2 million people who would lose their jobs. If you could speak directly to
the 2 million hardworking people who have decent jobs today, who you`re planning to get fired over the next year, what would you say to them?
POWELL: I would explain to people more broadly that, that inflation is extremely high and it`s hurting the working people of this country badly.
(END VIDEO CLIP)
WIRE: All right. More now from our Chief Business Correspondent, Christine Romance, who does a great job of explaining how interest rates impact
spending and borrowing in everyday households.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: This means something for every American here, whether you`re talking about your job or you`re
talking about all these ways that higher interest rates are going to affect you. And I want to just look at the mortgage market, for example.
30-year fixed rate mortgages are indirectly tied to these Federal Reserve rate hikes, and you`ve already seen mortgage rates rising here. You`re
paying about $700 more a month in interest on a typical mortgage today, a new mortgage today than you would have if you`d got that mortgage last
On credit card interest rates, those are at record highs here, 19% for a typical credit card interest rate. This bears repeating, you guys. If you
are putting money on a card and not paying it off, you will spend a long time and a lot of money to get out from underneath that debt.
So that`s a really important part here, too. And now in savings rates, you`re seeing a little bit of money. Eventually you might get a little bit
more by having your money in a certificate of deposit or in a savings account that has lagged, I`m going to say sadly. But eventually saving
money because of these higher rates could be a little more advantageous. It`s just not happening quite yet. But you will feel higher rates in just
about everything. And the Fed is signaling higher rates for longer here.
And that`s really one of the worries here. The Fed only has that one big tool, and that is raising those interest rates. They`ve done it eight
times. How come inflation is still above 6%? How come the job market is still so strong? How come consumers are still so flush with cash and still
spending so robustly? You have underlying strength in this economy. That means the Fed has to move harder to get these interest rates higher so that
they can cool down the economy, and that could throw the economy into a recession. It`s a very, very dangerous and delicate balance that the
Federal Reserve is trying to do.
And I think what we heard from the Fed Chief yesterday is that this economy has been stronger than they thought, it really has been. And we`re going to
hear a lot more information over the next week to 10 days that could, I think, really rattle markets and rattle that confidence in whether the Fed
has done the right thing at the right time here.
WIRE: OK, this weekend, most clocks in the U.S. will spring forward for the start of daylight-saving time. That means Sunday, March 12 at 02:00,
a.m. clocks in most U.S. states will suddenly jump to 3:00 a.m.. And not everyone`s a fan of time changes, especially when we lose an hour of sleep.
And there`s this push by some to end daylight saving altogether. The Sunshine Protection Act, a bill aimed at eliminating those changing clocks
in the U.S. was passed in the Senate last year by unanimous consent from both Republicans and Democrats. But then it stalled in the House of
This topic remains controversial. Some believe making Daylight Saving Time permanent would help us avoid losing sleep and would lead to brighter
afternoons, making people more productive, rested, and happier.
But some scientists suggest that bright mornings help people wake up, be more alert, and that the dark nights allow the body to trigger hormones
that help us sleep. Where do you stand? Here`s CNN meteorologist Jennifer Gray, who has more on the origins of the tradition.
JENNIFER GRAY, CNN METEOROLOGIST: So, why don`t we change the clocks ahead 1 hour in the spring and back 1 hour in the fall? Well, it`s actually to
reduce the electricity consumption by extending the daylight hours.
In the U.S. we change our clocks at 02:00 a.m. on the second Sunday in March, that begins Daylight Saving Time. That`s when we spring ahead. On
the first Sunday in November, we change our clocks at 02:00 a.m. again, that`s actually just going back to Standard Time.
Believe it or not, this started with an idea from Benjamin Franklin. Franklin did write an essay suggesting that people could use less candles
if they got up early and made better use of daylight. In 1918, the Standard Time Act established time zones and daylight-saving time. But not all
states participate. To this day, most of Arizona and all of Hawaii did not change their clocks.
Over 70 countries across the world observe Daylight Saving Time, with notable exceptions of China and Japan. In 2007, we actually changed the
date of when we set our clocks back an hour to the first week in November. This helped protect trigger traders by giving them an extra hour of
daylight. One of the other lines of thinking was that we would have a better voter turnout on election years.
Experts say each time you change your clocks, it`s always a good idea to change those batteries in your spoke detector. And always look forward to
fall when you get that extra hour of sleep.
WIRE: Ten second trivia.
What is the second highest mountain on Earth?
Mount Kilimanjaro, Denali, K2 or Matterhorn?
Asia`s K2 has a peak of over 28,000 feet, making it less than a thousand feet shorter than Mount Everest.
And for today`s story, getting a 10 out of 10, we`re heading to K2 widely considered, did you know, the most dangerous mountain in the world. But why
climb when you can float to it? Two pilots, Horacio Llorens and Tom de Dorlodot have become the first people to reach K2 by paragliding to it.
They did this back in July by spending four weeks on a glacier in Kashmir, performing several test flights toward the mountain to plot their course.
Eventually, they soared all the way up the face of the mountain to nearly 25,000 feet.
One of the biggest challenges, though, battling the cold weather. It was colder than a polar bear`s toenails up there hitting -Y_ 30 at times.
And now on to my favorite part of the day, we have a special shout out for Thomas Street Middle School in Toronto, Canada. We see you. Keep in touch
over the weekend. I`m @Coywire on Insta, Snapchat and TikTok. We`re CNN 10 on YouTube. I hope that you and everyone watching around the world have a
wonderful weekend. Remember, you are more powerful than you know.
I`m Coy Wire we`re CNN10. It`s been a blessing to spend this week with you.