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The Brief with Jim Sciutto

Tulsi Gabbard Resigning; Pakistani Military Chief Arrives In Tehran For Talks; Iran Seeks To Establish "Mechanism" With Oman To Secure Strait Of Hormuz; Protesters Clash With Authorities At DRC Treatment Center; Kevin Warsh Sworn In As Fed Chair; SpaceX Makes Another Attempt At Starship V3 Test Launch; Supermarket Savings This Holiday Weekend. Aired 6-7p ET

Aired May 22, 2026 - 18:00   ET

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

[18:00:00]

PAULA NEWTON, CNN ANCHOR: Hello and a very warm welcome to our viewers joining us from all around the world. I'm Paula Newton in New York. Jim

Sciutto is off. You are watching "The Brief."

Just ahead this hour, U.S. National Intelligence Director Tulsi Gabbard says she's resigning to help her husband with his battle against cancer.

Kevin Warsh is sworn in as the chair of the Federal Reserve. And SpaceX makes a second attempt to launch the largest version of its Starship

rocket.

But we do begin in Washington, where the U.S. National Intelligence Director Tulsi Gabbard has tendered her resignation, citing her husband's

diagnosis with cancer. Now, in a letter, she told President Trump, quote, at this time, I must step away from public service to be by his side and

fully support him through this battle. Gabbard says she will leave office at the end of June.

President Trump responded on Truth Social. Tulsi has done an incredible job, and we will miss her. Trump added that Gabbard will be replaced for

now by the principal deputy director of national intelligence, Aaron Lukas.

Joining me now is Larry Sabato. He's the director of the Center for Politics at the University of Virginia. Larry, always good to see you, but

especially today as, again, perhaps not unexpected that Gabbard was leaving. I mean, it is interesting the way it all unfolded, and, of course,

everyone wishes her and her family all the best.

I have to say, though, she entered office, right, promising to depoliticize intelligence. I remember some of her speeches in front of Congress

promising to do just that. But where are we with this? Based on what you have seen in her tenure, do you believe she's actually brought up the

confidence of the intelligence agencies in this country or done them some harm?

LARRY SABATO, CENTER FOR POLITICS DIRECTOR, UNIVERSITY OF VIRGINIA: Well, she certainly has increased the confidence. First of all, she has never

been in the inner circle. I think she was picked to begin with because she represented the old MAGA, the old Make America Great Again group around

Trump, the millions of voters who put him in office because they were dovish, really, surprisingly dovish for Republicans who are normally

hawkish. They didn't want any more forever wars. They didn't want another George W. Bush. What have they gotten? They got Venezuela. They got Iran

twice. This is the second time with Iran. Cuba may be next. We'll have to see.

And so, the position of this Trump administration is really diametrically opposed to what Tulsi Gabbard has said all along she is for, and that

included even her stint as a Democratic member of the U.S. House of Representatives.

NEWTON: You know, how significant do you believe it is, though, that a senior intelligence official is stepping down? I'm going to underscore and

make a fine point of it. The U.S. is at war at this hour.

SABATO: Well, the old saying is you don't change horses in the middle of a stream. Sometimes that's used as a justification for reelecting public

officials. But it also applies to the appointed officials at the top level like Gabbard. She didn't get along with the other intelligence people.

Of course, she's DNI, Director of National Intelligence. This has only been around for a quarter century. It was created right after 9/11. But for a

number of years, in fact, most of this quarter century, it has been a key component of America's intelligence services and intelligence delivery. And

I don't think she ever really was part of it. She wasn't even there in the situation room for many of the critical decisions. She wasn't included by

President Trump. She would have been there if he wanted her.

NEWTON: Yes, it is a significant point because there were times when she was away, actually on vacation, and people were in the situation room. And

as you point out, she would have been a person who'd be in the room if he wanted her there. Gabbard's involvement, though, in Fulton County in

Georgia and that election investigation was highly unusual. Why do you believe she did that? And what do you think she hoped to achieve?

[18:05:00]

SABATO: She did it to curry favor with Donald Trump, who, as you know, is obsessed with the 2020 election that he claims he won, but that voter

rigging deprived him of that victory, which is utter nonsense, completely and totally debunked. But this has happened before with senior

administration officials when they perhaps fall out of favor a bit. To get back into favor, they play to Trump's prejudices about this nonsense

concerning the 2020 election.

Let me also say it was deeply, deeply disturbing when she showed up at Fulton County. We have a strict division in the United States between

government officials, really domestic and foreign, but particularly those dealing with foreign policy. Interfering in elections that are run in this

country by the states and localities. That's the way we do elections. And it's worked pretty well for hundreds of years.

NEWTON: And that's why going forward, depending on who replaces Tulsi Gabbard, it will be interesting to see what kind of a pick Donald Trump

comes up with this. Larry Sabato, thank you so much. Have a great holiday weekend. We appreciate it.

SABATO: Thank you.

NEWTON: Now, to the Middle East, where mediation efforts are underway to end the conflict between Iran and the U.S. Now, Pakistan says its military

chief has arrived in Tehran for talks. U.S. Secretary of State Marco Rubio says Pakistan is planning to play a key role here.

(BEGIN VIDEO CLIP)

MARCO RUBIO, U.S. SECRETARY OF STATE: Well, the primary interlocutor on this has been Pakistan and continues to be. And they've done, I think, an

admirable job. And that's what we continue to work through. Obviously, other countries have interests, because especially Gulf countries that are

in the middle of all this may have their own situation. Going on, we talk to all of them. But I would just say that the primary country we've been

working with on all of this is Pakistan.

(END VIDEO CLIP)

NEWTON: All of this while Iran attempts to formalize its control of the Strait of Hormuz. It says it's seeking to establish a mechanism with Oman

to secure the critical waterway. Marco Rubio says Iran creating a toll system is not acceptable and makes a deal unfeasible.

CNN Political and National Security Analyst David Sanger joins us now. I mean, look, David, we've heard that line for several weeks now. What more

are you learning about what the president is weighing at this hour? Because you don't want to make it too simple, but he either gets a deal in the next

few days or they go back to military engagement.

DAVID SANGER, CNN POLITICAL AND NATIONAL SECURITY ANALYST, NYT WHITE HOUSE AND NATIONAL SECURITY CORRESPONDENT AND AUTHOR, "NEW COLD WARS": Well,

there are a lot of signs that, in fact, military engagement is what he's considering. And he met this morning, we were told, by the chairman of the

Joint Chiefs of Staff with Pete Hegseth, the defense secretary. We think some other commanders were there. And presumably that meeting was about

what targets they might hit.

The question is toward what end? You know, they fought this for 38 days starting in late February and through all of March and until the ceasefire

was declared or the pause was declared around April 8th. And what happened was that a lot of Iranian military targets got destroyed. But the Iranians

stuck with the nuclear program. It's sitting exactly where it was before that. And, of course, impose these tolls and some control over the Strait.

And so, the president's got to figure out what he could do differently now that would give him a different outcome.

NEWTON: When you say what he could do differently, it seems that Iran wants to do things differently. I mean, Oman is a close partner, as you know, of

the United States. I mean, what do all of these discussions about having a mechanism and paying fees, where are these negotiations going up anywhere?

And I note that the UAE came out this week very strongly saying, again, this is unacceptable.

SANGER: Right. So, you've begun to see some countries in the area saying, look, it's inevitable that there will be some Iranian control over the

Strait. That what happened after this attack was the Iranians did something that they had never done in the 47 years since the Iranian revolution,

which was actually cut off traffic in the Strait. And they suddenly discovered it was their superpower, right, that they could cause economic

disruption half a world away, send oil prices up simply by declaring this control.

And the fact of the matter is that if you want to put the genie back in the bottle, you have to be ready to be contesting that space forever because

the Iranians live there. And everybody else would have to send and keep their forces there.

So, the Iranians are just trying at this point to sort of put different facts in the water, right, and have a system that everybody else accedes

to, even if they don't like it.

[18:10:00]

NEWTON: And so, David, what is your -- you know, your understanding going into this weekend? I mean, Secretary of State Rubio says that the U.S. is

waiting on Iran, but that other options are on the table. I mean, what is your understanding? Because we've already heard from the president earlier

this week that he supposedly put a military strike on pause at the request of countries like Pakistan, because he thought that maybe there could be a

breakthrough. I mean, what are you learning?

SANGER: So, it's the Gulf countries that are worried that if the U.S. begins to strike energy sites in Iran, the Iranians will strike energy

sites in Saudi Arabia, UAE, and elsewhere. So, everybody would like to see a negotiated solution here.

Frankly, having covered the 2015 nuclear agreement quite at length, it's hard to imagine any kind of comprehensive agreement coming together in 24

or 48 hours. There's a reason it took nearly two years to negotiate that agreement and to get all the wording right. And when they were done, it was

160 pages long. But the Iranians largely stuck with it, as did others, until President Trump pulled out of it in 2018.

So, I think the best you could hope for would be some vague memorandum of understanding that would lead to a negotiation period. But I'm not sure

what that would add up to in the end.

NEWTON: But do you think we'd get to military strikes before that at this point?

SANGER: You know, it's happened before. I mean, the Iranians were in negotiation with the U.S. in June when there were military strikes. They

were in negotiations in February when there were military strikes. The only difference now is that President Trump is under greater pressure, from

people angry about paying $5 a gallon for gasoline to Republicans in his own party who have begun to turn against this war, to show that he is

decelerating, not accelerating.

NEWTON: David Sanger, for us, again, going into a long holiday weekend, we await to see what the president's next moves will be. Appreciate it.

SANGER: Thank you. Great to see you.

NEWTON: Now, to the Democratic Republic of Congo, where Ebola continues to spread. As family members mourn their loved ones, there is also growing

unrest. Thursday, protesters set fire to an Ebola treatment center, demanding the return of a body.

Now, the World Health Organization says misinformation is hurting the response to the virus. At least 177 deaths are now thought to be linked to

the disease in the DRC, while about another 750 cases are suspected. Larry Madowo has our report.

(BEGIN VIDEOTAPE)

LARRY MADOWO, CNN CORRESPONDENT (voice-over): Tensions ran high at this hospital treating Ebola patients in the Eastern Democratic Republic of

Congo. This local politician was on the scene.

LUC MALEMBE, CONGOLESE POLITICIAN (through translator): I'm at Wampara Hospital. We're locked down here. Look at the protesters. They're angry.

They're setting fire to the tents of Ebola patients because they want to forcibly retrieve the bodies.

MADOWO (voice-over): Residents grew angry after health authorities refused to hand over the body of a young man who died from Ebola, this father says.

LEOPOLD KATABUKA, WAMPARA RESIDENT (through translator): We came to bury my son, and then we saw these people coming in numbers asking for the body of

someone called Eli. They started throwing stones and set fire to the tents, and my son's body was left burned there. I don't know what to do.

MADOWO (voice-over): Police were quickly called in to control the scene after protesters set fire to tents where patients suspected to have Ebola

were being isolated, according to eyewitness accounts. And while health workers have been working hard to fight off the virus, a second battle has

also been underway, the fight against disinformation.

MALEMBE (through translator): This lack of communication, this absence of communication from the health authorities in the province is what allowed

rumors to take over, and it is what continues to this day.

MADOWO (voice-over): The key tensions seeming to lie between the sanitary protocols put in place by authorities and the wishes of the local community

to uphold traditional burial rights.

MADOWO: The community wants to bury the dead with dignity, but Ebola often spreads at funerals. It's still under investigation, but even this current

outbreak in the Democratic Republic of Congo is believed to stem from a super spreader event, a funeral on May 5th. That's because some people

touch the corpse of the dead as a final farewell.

The fluids from the body of Ebola patients are still infectious, and that's why authorities in Ituri, the epicenter of this outbreak, have now said all

funerals have to be carried out with strict protocols, and they've banned all wakes.

MADOWO (voice-over): In the region's capital, residents have been calling on their neighbors to take the virus more seriously.

[18:15:00]

UNIDENTIFIED MALE (through translator): Yes, the message I would like to convey now to those listening to me right now. We are in the town of Bunia,

and this affects us too. We feel it. So, what I tell people wherever they are is to know that they have to protect their families, to protect those

close to them, because if I become infected, that means my family is infected too.

MADOWO (voice-over): The World Health Organization also raised the alarm once again on Friday.

DR. TEDROS ADHANOM GHEBREYESUS, WHO DIRECTOR-GENERAL: We are now revising our risk assessment to very high at the national level, high at the

regional level, and low at global level.

MADOWO (voice-over): The WHO warning that a potential vaccine may still be as far as nine months away, news that is sure to be another blow to

communities struggling to come to terms with so much loss already.

Larry Madowo, CNN.

(END VIDEOTAPE)

NEWTON: OK. Coming up for us, Kevin Warsh era begins in Washington. The new Fed chair facing a whole host of challenges, including the highest level of

inflation in years. Is he up to the task? We'll discuss.

(COMMERCIAL BREAK)

NEWTON: And welcome back. In today's Business Breakout, a solid way to end the week on Wall Street. Stocks rose right across the board ahead of the

long Memorial Day weekend. The Dow closed at record highs again. The S&P wrapped up its eighth straight winning week.

And this was, in fact, an auspicious beginning for Kevin Walsh's term as new Fed chair. Walsh was sworn into office earlier in a White House

ceremony. He replaces Jerome Powell as the helm of the U.S. Central Bank.

Now, the Walsh era begins at a critical time for the U.S. economy. Inflation has picked up dramatically since the start of the Iran war. That

could force the Fed to drop its rate-cutting bias and perhaps consider raising rates, the exact opposite, to be sure, of what President Trump has

been demanding from the central bank. Trump, however, sounding conciliatory during the event today. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: Honestly, I really mean this. This is not said in any other way. I want Kevin to be totally independent. I want him

to be independent and just do a great job. Don't look at me. Don't look at anybody. Just do your own thing and do a great job.

(END VIDEO CLIP)

NEWTON: OK. Warsh said in his remarks that major changes are coming to the Fed under his leadership.

(BEGIN VIDEO CLIP)

KEVIN WARSH, CHAIR, U.S. FEDERAL RESERVE: I will lead a reform-oriented Federal Reserve, learning from past successes and mistakes both, escaping

static frameworks and models, and upholding clear standards of integrity and performance.

(END VIDEO CLIP)

[18:20:00]

NEWTON: Fed Governor Christopher Waller, meantime, a key policymaker, said today he believes the bank should change its policy stance to neutral.

Waller recently advocated for rate cuts. He now says it's, quote, "kind of crazy to be thinking about lowering them further."

CNN Global Economic Analyst Rana Foroohar joins us now. Grateful to you to lend us this expertise on a historic day, right, Rana? I mean, how do you

square the fact that Trump, all we've heard from him for months, or even before he was president the second time, demanding these rate cuts, and

yet, you know, he didn't say that to Warsh today?

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST AND ASSOCIATE EDITOR, FINANCIAL TIMES: No, you know, Paula, it's a great point. It goes to a theory that's

sort of going around in investment circles, that really this was personal. This was about Jay Powell and Donald Trump. And maybe, just maybe, the

president is going to do what presidents should do with Fed chairs, step back and let them do their jobs when it comes to Kevin Warsh.

You know, as always with Trump, he could change his mind tomorrow. We could hear something very different. But I think it's good news that the markets

are up. I think that that says, look, we trust Warsh. We think he's going to do the right thing.

It's a tricky time, though, Paula. You know, the markets being up are one thing, but, boy, consumer sentiment and people's feeling about the economy,

about inflation, about the job market is the lowest it's been in some time. And, you know, the Iran factor continues to ripple through. It's going to

be a huge issue in the midterms. And you're seeing a lot of folks within the Fed, governors that would have said, OK, cut, or even be neutral, you

know, saying, look, we've got to think about inflation going ahead. So, he's got his work cut out for him, no question.

NEWTON: And given what you're saying, I mean, usually, the saying goes, every new Fed chair is tested very early on in their tenure. Where do you

see the risks of that in the coming months?

FOROOHAR: So, one of the things that I have admired about Kevin Warsh is that after the great financial crisis, he was one of the few people that

really stood up and said, you know what, we don't need more quantitative easing. We don't need more easy money in the system. He said this after --

you know, after the early days of QE, when we did see a lift to the market. But then there was round two, round three, round four. And Warsh said, no,

look, we've got to bite the bullet. We -- the economy's OK. But, you know, we can't keep going with this. I thought that was a brave stance to take.

Now, the question is, will he stand up to the president now or to other forces if rates need to be hiked? Will he do that? Will he take the tough

decisions, or is he going to be political? Is he going to be watching out to not tangle with the president? That's the big thing that markets are

watching for.

NEWTON: Interesting. And you don't think that the debate about his independence then has been put to bed yet?

FOROOHAR: I would -- I certainly wouldn't put it to bed until I see how he's responding to the data that's coming in. I will say I like the fact

that he's open to new ways of thinking. I have thought for some time that the Fed needed to come out of the box that it's been in, looking at old

ways of thinking about the economy, you know, past data models.

The Fed has actually really lagged the way a lot of economists actually think about the economy now. We're not living in a world of widgets. It's

21st century. It's data. It's extremely -- I mean, there's a lot of vectors in play right now. So, I like that creativity. But I want to see a few

quarters of, All right. here's the data. Now, how is Kevin Warsh responding? And how does he explain it to us? How does the Fed communicate

with us going forward?

NEWTON: Yes. And it's interesting that he's saying that perhaps he's going to do less communication, not more. So, that's also going to be interesting

to see, you know, where we are at that a year from now. Rana Foroohar, we will leave it there. We thank you so much for being with us. And happy

holiday weekend to you as well.

FOROOHAR: Happy holidays, Paula.

NEWTON: Now, checking some of today's other business headlines. New data shows U.S. consumer sentiment hitting a new all-time low this month.

According to the University of Michigan survey, 57 percent of consumers say high prices are eroding their personal finances. Some of the sharpest

declines in sentiment coming from lower income consumers and those without college degrees.

On Capitol Hill, House Oversight Chair James Comer is opening an investigation into possible insider trading on prediction markets. Comer

says he'll probe trades made on the Kalshi and Polymarket platforms, including trades made on elections and U.S. military actions in Venezuela

and Iran.

[18:25:00]

We should note CNN has a partnership with Kalshi and uses its data to cover major events, though all editorial employees are prohibited from

participating in prediction markets.

The CEO of Standard Charter Bank is apologizing after saying automation could replace, quote, "lower value human capital." Bill Winters says he's

sorry his choice of words caused upset and that he values all of his colleagues. Standard Charter announced earlier this week it would be laying

off thousands of workers, citing advances in A.I..

OK. Straight ahead for us, SpaceX hoping to test the latest version of its Starship after scrubbing yesterday's launch. Will the mega rocket actually

take off? Stay with us, because I'm curious about this as well. We will have a live update.

(COMMERCIAL BREAK)

NEWTON: So, within minutes, SpaceX is hoping to launch the latest version of its Starship Mega rocket. That was after canceling yesterday's attempt

because of multiple issues with the craft. Once the test launch does happen, assuming it eventually does in the next few minutes, the V3 rocket

will be the largest spacecraft to ever take flight. It comes as SpaceX hopes to break records with its upcoming IPO.

Now, one big issue for investors, the company's less than stellar safety record. A number of SpaceX's test flights last year ended in explosions.

Joining me now is the CEO of Aerospace startup, Muon Space. I'm not sure if I'm saying that properly, Jonny Dyer. The company reached a deal with

SpaceX to integrate Starlink terminals into its satellite constellations. That is your connection to Mr. Elon Musk and these kinds of ventures.

I am wondering though what you make of this launch right now, because they did have to scrub yesterday's, but they did say that, look, this debut of

this new version, that this will go as planned. I will say we are less than a minute away from this launch now.

[18:30:00]

JONNY DYER, CO-FOUNDER AND CEO, MUON SPACE: Yes. I mean, we'll see in just a few seconds what happens. It's very exciting. I mean, I think, you know,

these are enormously complex machines. This version, V3, is in a lot of ways almost an entirely new product. They've re-engineered a lot of the

vehicle for this. So, it's not terribly surprising. There's still some teething problems they're having as they try and get it off the ground.

But, you know, SpaceX does this better than anybody in the world. So, I wouldn't be surprised at all if it launches here.

NEWTON: Got you. My expertise ends at the skies look good. The weather looks good. Now, they did hold for a couple of seconds, but now we're in

the 22nd countdown here. If he does pull this off, if this happens, what does it mean really for the next phase of SpaceX? I actually apologize. I

apologize, Jonny. Hold on one second. We are about to do this. Let's listen in.

UNIDENTIFIED MALE: Switching down range.

UNIDENTIFIED FEMALE: (INAUDIBLE) pressure nominal.

UNIDENTIFIED MALE: All right. We are T-plus 30 seconds into flight. C33 out of 33. Raptor 3 engines on booster V3 ascending over the Gulf now coming up

on maximum aerodynamic pressure.

UNIDENTIFIED MALE: Booster and ship avionics power telemetry nominal.

UNIDENTIFIED MALE: Systems looking good. We're just passing through the period of maximum dynamic pressure. A little over a minute into flight now.

Vibrations chilling out here at Star Factory as we continue to watch Starship Flight 12 arc out over the Gulf. The next major thing coming up is

going to be hot staging.

UNIDENTIFIED MALE: Booster props (INAUDIBLE).

UNIDENTIFIED MALE: Reminder, we do what's our version of MECO, Most Engines Cut Off. So, we're going to shut down all but five of the Raptor engines on

the booster. And then after that happens, we're going to ignite the six engines on ship while it is still attached. We have clamps that hold the

two together. Those are going to retract inside of that hot stage ring kind of protect them.

We had one of the engines go out still flying on 32 of the Raptor engines, but again, once we get the hot staging, those six engines on the ship are

going to ignite. We're going to do it in a little bit different of a of a sequence on version three. Essentially, those three are back engines will

ignite first, almost immediately after just one of those central engines is going to ignite, and that's going to give the booster a bit of a kick,

sending it in a known direction, followed shortly after by the other two.

We're through MECO.

UNIDENTIFIED MALE: Separation.

UNIDENTIFIED MALE: There you go. Successful hot staging separation. We're not seeing as many booster engines ignite as we expected for boost back,

but we are seeing six good engines lit on ship. It looks like we just had an early boost back shutdown. Again, a reminder, the booster was planned to

essentially head into the Gulf for a splashdown, but it has shut its engines down early on into boost back.

And we just see one of the RVAC. So, we're now running on five engines on ship. We do have engine out capability, so it's going to continue into its

ascent. You got booster on the left there, ship on the right.

UNIDENTIFIED FEMALE: Get avionics power (INAUDIBLE).

UNIDENTIFIED MALE: Again, we're not planning on bringing the booster back for this flight, as this was the very first time.

All right. So, about three minutes, 50 seconds into today's flight. Just a reminder, the ship planned to burn its engines for about eight minutes and

change. About eight minutes and 11 seconds was our plan today.

[18:35:00]

That could shift slightly as we do have one engine out running on one fewer RVACs.

Again, continuing to watch. So, booster did not complete its boost back burn. We did not see all of the engines ignite. That we expected. All

right. Continuing to get some views from it, though. That's going to make a splashdown somewhere in the Gulf. Reminder, we clear air, sea space,

everything for these launches.

All right. So, we are coming up on T-plus five minutes. The ship continuing to fire five of the six. Standing by for callouts, making sure ship's on

its planned trajectory. Again, we are planning a suborbital trajectory for the ship today. Booster giving us some views as it continues to make its

way back down towards the water.

All right. So, a little over five and a half minutes in flight. Kate, Jake, you guys with me. It looks like booster's starting to come in hot.

UNIDENTIFIED FEMALE: Yes. We had the opportunity to stand outside to watch launch. And wow, that was incredible.

UNIDENTIFIED MALE: Yes, that was really loud, really shaky. And I was actually surprised how fast the booster got off the pad -- or the whole

stack. That was that was quite incredible.

UNIDENTIFIED FEMALE: Absolutely. So, we have views here from the booster coming back down, making its way into the Gulf. Pretty cool to see --

UNIDENTIFIED MALE: We have healthy chamber pressures on five out of six. Ship --

NEWTON: Let's bring Jonny Dyer back in here. Listen, you're a former SpaceX engineer. I think I believe this went as according to plan, except they

keep saying that one engine is out. But literally, it was spectacular just to see the force of this thing as it left the ground. What are your

impressions in terms of what you've just seen from this test flight?

DYER: Well, you know, clearly a lot of things went right. I mean, they got, you know, the first stage burned to completion and they staged to the

Starship.

But there was a couple of issues I noticed on the way up. So, you know, the first stage lost an engine and then they were trying to actually do a boost

back burn to basically get the first stage to reenter the way they expected to eventually when they want to reuse the booster. And it appears that

didn't happen successfully. So, I think there's definitely some key milestones that they were looking to hit that probably didn't come off

fully successfully so far.

And then we're also seeing on Starship right now, although it seems to be flying fine, it's got one engine out as well, which I think is probably not

-- it's definitely not planned. And it does have the capability to still complete its mission with five of the six engines or to lose another one

before it's done doing its full burn. You know, they would probably have some more problems.

NEWTON: Jonny, how difficult is it what they attempted here? And when we talk about milestones, I mean, obviously, they want everything to go 100

percent the way they had planned. But are these setbacks or is this more about, you know, the components of a test flight?

DYER: I mean, it's a bit of both. You know, I think for Starship, there's been a little bit of two step forward, one step back with a lot of their

flights. And part of the reason for that is they're changing a lot as they go. So, we're on the third version of the Starship.

You know, they had a couple of quite successful flights with the V2. But as I said, this is almost an entirely new product. So, they've reengineered a

whole you know, everything from the engines to the thermal protection to a lot of the interior kind of architecture of the plumbing, et cetera, in the

booster.

So, it's kind of to be expected that there's going to be some teething problems and things that come out. And when you're making all these

changes. You know, I suspect at SpaceX, they would they would like to have seen a perfect flight and a lot of these milestones getting hit and nailed

as they have in previous flights. But I suspect there's also a healthy realism for the fact that when you're changing that much, you expect to see

some problems.

NEWTON: In terms, though, for U.S. space programs, both whether it's NASA or the private programs themselves, given we are in the middle of a space

race, how crucial is it that they kind of hit these milestones and hit the timelines here? Because obviously, given some of the complications you just

spelled out, I mean, to a certain extent, it is back to the drawing board, right, let's figure out what we need to do next time.

DYER: Yes. I wouldn't call it back to the drawing board, right? They're getting incredible data from this flight, even if they have some failures.

So, they're going to learn a ton. They're going to be able to fix these problems quickly, you know, hopefully on the next flight. So, again, I

think there's a huge amount of value they're getting out of this, even if they're not hitting every single milestone.

[18:40:00]

In terms of the flight itself, I mean, you know, in the rocket itself, it's enormously important. It's enormously important for the country. I mean,

we're going to be heavily reliant on Starship to do all the things we want to do as a country in space. It's also incredibly important for SpaceX.

You know, they're about to IPO. If you read their IPO prospectus, you know, all of their future plans in terms of how they imagine growing to become

one of the world's most valuable companies with some of the largest markets in the world are really hinged upon Starship becoming not only working, but

becoming this reusable workhorse, unlike anything that's ever existed before.

And so, you know, they're still on their way to that. There's promising signs that they're on the right path, but they really do need to get this

working very, very, very well if they're going to succeed in a lot of their ambitions that they've been, you know, talking about as part of the public

offering.

NEWTON: Yes. You've made such good points. I mean, just looking at the IPO, that was dense with a lot of things, but one of it -- one thing was the

ambition of SpaceX and Elon Musk to have this multi-planetary existence. We'll continue to follow it closely. Johnny, thanks so much for holding our

hand through this. I mean, we're looking at some of the excitement there, as I said, on the ground, it must be incredibly dramatic, but glad that you

just really gave us some of the details of what's at stake here. Appreciate it.

DYER: Thank you for having me.

NEWTON: All right. Coming up on "The Brief," Memorial Day weekend is usually a time to unwind, relax, have a barbecue, but rising prices are

getting in the way of that for many Americans. After the break, some timely advice on how to save a buck or two.

(COMMERCIAL BREAK)

NEWTON: Those Americans mark Memorial Day this weekend. Traditionally, it is a time for backyard family gatherings, but high gas prices and the cost

of living have plunged U.S. consumer sentiment to an all-time low. That's according to the University of Michigan.

Everything from burgers to the grills, you cook them on, could be costing more this year. In fact, already are. The Leonard family has been in the

food business for 100 years. And Stew Leonard joins us now from one store in Canada. Good to see you. Happy holiday weekend to you, first and

foremost.

STEW LEONARD JR., PRESIDENT AND CEO, STEW LEONARD'S: Thank you.

NEWTON: And I want to say that obviously we know, right, your customers might be feeling the pressure. They certainly are. You got gas, rent,

insurance, groceries. Are shoppers changing what they buy this Memorial Day? And what tips can you give them on how to save a little bit?

[18:45:00]

LEONARD JR.: Well, you know, you notice people are changing because, you know, here's something that's always popular at the Fourth of July. This is

probably one of the best steaks you can buy right here. It's a ribeye tomahawk steak, and it's at the top of the list, but it probably is going

to cost you $70 or $80, OK?

NEWTON: $70 or $80.

LEONARD JR.: So, here's what people are doing -- yes, for that right there.

NEWTON: Wow.

LEONARD JR.: You know, you'll probably feed -- I mean, you could feed two or three people with that. Hey, if you went to a steakhouse, it would

probably be double or even more than that.

But here's what we're noticing right now. People are sort of switching and trading down. So, instead of something that double digits on price per

pound, here's something that's only five bucks a pound, you know, or six bucks a pound, which is a hamburger. So, we notice, of course, with

Memorial Day, that's going to be big.

Hey, if you want, check out our YouTube -- go to YouTube and you can see I just did a big burger tasting. This is a ribeye burger. I did a porterhouse

burger. You know, so I did a burger tasting. I ate like three cheeseburgers at lunch one day with all these tastings. But check it out.

NEWTON: It's tough work, Stew, but someone has to do it.

LEONARD JR.: Hey, I was hungry anyway. But you know what, then you have people even moving down to chicken. And one thing I've been doing instead

of a steak, I've been eating a pork chop, you know.

NEWTON: OK.

LEONARD JR.: And you're saving ten bucks a pound.

NEWTON: Got you.

LEONARD JR.: So, you notice people moving down to bread and proteins.

NEWTON: Understood.

LEONARD JR.: And you know what wnother challenge that the customers have right now is like one morning I get a call and -- from our farmer down in

Florida who grows tomatoes. And he said, boy, I got hit with a cold snap. You know, tomato prices are up a little bit right now, just like eggs were.

Just has to do with the weather. He had to replant his crop. But he said it's going to cost you $2,000 more to get your truck up, the trailer truck

from Florida up to your stores around the New York area.

And so, then I'm in the store and the customer comes up and says, I just filled my Suburban up and it cost me $50 more to do that. So, you're sort

of -- we're stuck in the middle, you know, as a retailer right now. Over here I got suppliers that want to raise the prices because fuel went up.

And over here I get customers that are literally up to here right now. You know, they're feeling the pinch.

NEWTON: And on that --

LEONARD JR.: So, we're not raising prices right now right now.

NEWTON: Right. On that point, you know, earlier we had this issue with tariffs. Are you seeing that that is still you? Is that kind of abated a

little bit?

LEONARD JR.: It's still an issue. But, you know, one thing in the food business, nobody wants to raise prices, you know. You know, when prices go

up, sales go down. So, we felt we've worked pretty good through the tariff situation. And even like on the wine and spirit side, we didn't -- our

importers and wholesalers really didn't even pass on the tariff. I think they're getting some rebates right now.

But on the food side, there's a little bit -- what we've been doing is like I did with the farmer down in Florida, they said, look, we'll split it with

you. You know, I think the tariff thing will be temporary. I think the fuel thing is going to be temporary when we get the Middle East straightened

out. And also, I think prices on energy in general will be coming down.

NEWTON: Right.

LEONARD JR.: I think you'll start -- I'm optimistic about the next Memorial Day, maybe better than this one.

NEWTON: We appreciate that. But what we'll hope for Labor Day at this point in the fall. So, I want to ask you, what are your -- I don't have a lot of

time left, but what are your best tips for everyone who's in the supermarket to actually save money when you're shopping?

LEONARD JR.: OK. One of them is, you know, look for the specials online. We have specials at Stew Leonard's this week. Every store does. There's app

deals. Take advantage of those things. The second thing is don't impulse buy. You know, we do a lot of demos like Costco does and everything. We

want you to buy one extra item. But, you know, don't do that. One customer told me one way to save money. Leave the kids home. OK, because they're

always wanting throw some cookies or something in the car.

And you know, the other thing is like, for instance, you can buy a watermelon like this and you can cut it yourself and make it into cubes or

you can do it like this and have it all chopped up by our cost for. So, yes, I know what do yourself at home.

NEWTON: Yes.

LEONARD JR.: Hey, you know, one of the last things I just want to mention, you know, my -- unfortunately my wife and I lost a little two-year-old boy

years ago to a drowning and this weekend, Memorial Day weekend, one of the worst in the whole summer right now, along with Fourth of July.

[18:50:00]

So, I would just say to everybody watching and listening, don't get on this when your kids are around the water or the pool or the beach, whatever,

this weekend. Keep your eyes on your kids. And the best thing you can do teach -- give them swim lesson.

NEWTON: You are right, Stew. We -- I'm glad that you always remind us. You have to keep your eye on them every second. And I'm glad that you continue

to reinforce that message. Stew Leonard, thanks so much and have a great Memorial Day weekend. Thank you.

LEONARD JR.: OK. You too. And could you do me a favor and tell everybody it's going to be warm and sunny this weekend instead of scaring everybody

about the rain?

NEWTON: Sure, Stew. It's going to be warm and sunny.

LEONARD JR.: You're killing me.

NEWTON: Thanks, Stu. Take care. See you soon. Bye-bye. And we'll be right back with more news in a moment.

(COMMERCIAL BREAK)

NEWTON: So, after a trophy-laden decade, as Manchester City manager Pep Guardiola is leaving the club, he has confirmed this weekend's match at

home against Aston Villa will be his last. CNN's Amanda Davies has more.

(BEGIN VIDEOTAPE)

AMANDA DAVIES, CNN WORLD SPORT: It's been one of the worst kept secrets in football, but now officially confirmed, the Pep Guardiola era at Manchester

City will come to an end after one final game on Sunday. After 10 years and 17 major trophies, including six Premier League titles and this year's FA

Cup, the 55-year-old's final match in charge will be against Aston Villa.

The news comes just three days after the club were beaten to this year's Premier League title by Arsenal, and we'll see Guardiola leave with a year

still left on his contract.

(BEGIN VIDEO CLIP)

PEP GUARDIOLA, OUTGOING MANCHESTER CITY MANAGER: I don't know the right words, really satisfied, happy and proud and have been the experience, I

would say, maybe of my life. Otherwise, it wouldn't have been 10 years. So, I cannot be more grateful for the amount of love and affection that I had,

not today, these days, not for many, many years. And when the moment we cannot fight for anything else, because it's already achieved. So, that is

a moment to say, OK.

I want to say proper goodbye to my people on Sunday. I want to hug them, all of them on the pitch. And that's why we announced it. I would love to

continue to be part of this club, so not a manager action. And I will not take absolutely zero decisions on that. Just to be part of club, if they

need me to represent or do something in many, many clubs that this organization has, I will be there.

I like still to be, you know, part of this club in a different role, completely different, not in the daily decisions, not being in front of the

spotlight, always behind the scenes. But I like to be part of that.

(END VIDEO CLIP)

[18:55:00]

DAVIES: Well, it has been announced that Pep Guardiola will take up a role as the city football group, global ambassador. And the north stand at the

Etihad Stadium will be renamed the Pep Guardiola stand. And city's chairman, Khaldoon Al Mubarak, the man in charge of getting Guardiola to

join the club in 2016, has paid tribute, saying, over the last 10 years, honesty and trust have formed the bedrock on which we have navigated every

situation together with Pep. Always understanding that we could find the right answer together. Today, the right answer is for Pep to finish his

journey as the manager of Manchester City. The unique approach that he brings to his coaching has allowed him to constantly challenge the accepted

truths of our game. It is the reason that in the last 10 years, he's not only made Manchester City better, he has also made football better.

(END VIDEOTAPE)

NEWTON: And our thanks to Amanda. And our thanks to you for your company. I'm Paula Newton in New York. You've been watching "The Brief." Have a

great weekend.

(COMMERCIAL BREAK)

[19:00:00]

END