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Consumer Price Inflation Slowed in May; Biden Heads to G-7 Summit; Hamas Proposes Changes to Ceasefire Proposal; Supreme Court Could Give Hunter Biden Appeal Opening; Hunter Biden's Federal Conviction. Aired 9-9:30a ET

Aired June 12, 2024 - 09:00   ET

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

[09:00:00]

JOHN BERMAN, CNN ANCHOR: All right, the breaking news. The type of inflation data that a lot of people were hoping for.

Let's get right to CNN's Rahel Solomon with the very latest on this.

What do the numbers show, Rahel?

RAHEL SOLOMON, CNN CORRESPONDENT: Yes, John, it may be summer outside, but it is cooling off in the inflation report, at least this inflation report. So, this is CPI, the Consumer Price Index. And what it shows is a better-than-expected measure on really every level, John. So, let's talk about headline annual inflation. That came in at 3.3 percent. This index increasing at 3.3 percent. That is better than we saw the month prior. That is better than economists were expecting when you look at it on a monthly basis.

Now, we haven't seen a figure like this since July of 2022, I want to say, and so inflation did not increase on a monthly basis. You like to see that.

Now, CPI is a basket of goods and services. And the government sort of measures the price difference over time. And so that's what we're talking about here.

But, John, even if you were to remove the volatile categories, categories like food, categories like energy, you get what's called core inflation. And this is a better underlying indicator of inflation and what the Federal Reserve has control over. That also came at better-than-expected, both on a headline annual basis and on a monthly basis.

Really quickly to talk about some of the sectors, which we're showing you here, gas prices, energy prices, those fell. Food prices did tick up slightly, ever so slightly. And shelter, which has been especially stubborn, has also increased in the month, which it continues to do.

Now, let me tell you why futures are popping on this news, are so happy about this news. Investors welcoming this news with open arms because, John, as you might remember, earlier this year, we had a string - not sure if the Dow was correct because a moment ago when I saw the Dow it was actually up about 220 points. So, we'll work on that for you.

But the reason why futures were largely up, at least they were a few moments ago, is because we had gotten a string, report after report after report, whether it was inflation, whether it was the labor market, that was coming in stronger than expected. And what that did, those hot reports, essentially through water on the idea that we might see rate cuts anytime soon.

And so you get a report like this, I'll pull it up here, you get a report like this from the BLS, which suggests that, OK, inflation is starting to cool again. It is starting to accommodate and be accommodating. Well, that then puts rate cuts back on the table. There are four rate meetings the rest of this year after this meeting. We will obviously here from Jay Powell in about six hours. But after this meeting, there are four meetings. And so, do we see more than one rate cut again?

And so it just makes that conversation more active again because after these really hot inflation reports, it started to feel like, well maybe we won't get any rate cuts, or maybe we will only get one. And so we're back in the game, John. For all of those who were hoping for a rate cut, they are back in the game after a report like this.

BERMAN: Back in the game. Inflation slows down more than expected. What people want to see.

SOLOMON: Yes.

BERMAN: Rahel Solomon, thanks so much for explaining it so well. Thank you.

Kate.

KATE BOLDUAN, CNN ANCHOR: So, President Biden is headed to Italy today. He's about to take off. You can see Air Force One right there. He's headed to Italy for the G-7 Summit. And there Biden will be sitting down with world leaders with huge issues on the agenda, including the Israel-Hamas War.

And moments ago, Secretary of State Tony Blinken made his first substantive remarks after Hamas offered its response to the U.S.- backed hostage and ceasefire deal approved by the U.N. Security Council this week.

Listen to Tony Blinken.

(BEGIN VIDEO CLIP)

ANTONY BLINKEN, SECRETARY OF STATE: Hamas has proposed numerous changes to the proposal that was on the table. We discussed those changes last night with different (ph) colleagues and today with the prime minister. Some of the changes are workable. Some are not.

(END VIDEO CLIP)

BOLDUAN: Blinken not immediately providing detail on what changes Hamas wants, what the numerous changes are that they're proposing.

CNN's Nic Robertson is in Italy ahead of the G-7 Summit.

And, Nic, Tony Blinken when out of his way to say, G-7 leaders are among those who have all voiced their support for this hostage and ceasefire deal.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, they have. So when they meet here with President Biden, everyone gets into town late tonight and they began meeting tomorrow, perhaps this is not going to be a central ticket item on the planned agenda. But because of the bumps in the road, getting to where we're at on these talks that Egypt and Qatar are interlocutors on, undoubtedly there's going to be some discussion about how the G-7 nations can help move the ball forward because the narrative has been, put pressure on Hamas, put pressure on Hamas. It doesn't matter which diplomats in which country you're talking to, either in the region or in Europe, that's the narrative at the moment.

So, you will have here the leaders of the UAE and Turkey, who are not members of the G-7, but will be undoubtedly consulted in conversations about how they can use their influence over Hamas.

[09:05:08]

Look, we know that the Hamas leaders, the political leaders who live outside of Gaza, they've been to Turkey. They've met with President Erdogan. The UAE, you know, has - has an influence in the region as well. Saudi Arabia, Crown Prince Mohammed bin Salman, still not clear as of yesterday because of the health of the king back in Saudi Arabia, whether or not he'll be here, but he's also invited. And a key stakeholder in the humanitarian support and the rebuilding of Gaza when there's a peace deal.

So these countries do have influence and do have a voice. So perhaps there'll be brought into the conversation. But it's not clear how they are actually going to leverage Hamas, who - who have already been under a lot of pressure already, who are clearly holding out for, they think, they're in a better position. We heard that indicated from the Hamas leader, Yahya Sinwar, that he thinks that - that they have Israel right where they want them, according to documents seen by "The Wall Street Journal."

So, it's not clear what pressure can be applied. But conversations here, that will be the question asked, how do we do it? How do we move the ball forward?

BOLDUAN: Yes, quite a moment in this one of many important issues that the world leaders are going to be hitting on.

Great to have you, Nic. Thank you so much.

John.

BERMAN: All right, with us now, Max Boot, a senior fellow at the Council on Foreign Relations, "Washington Post" columnist, and the author of "Reagan: His Life and Legend."

Max, it is great to see you.

I just want to read you again with the secretary just said because I - his words were carefully chosen, and I think reflect the moment we're in, these ceasefire and hostage discussions. "The secretary said, you get to a point where if one side continues to change its demands, including making demands on insisting on changes for things that it already accepted, you have to question whether they're proceeding in good faith or not. He says Hamas is changing his demands. He says the gaps he thinks are bridgeable, but." What do you make of this?

MAX BOOT, SENIOR FELLOW, COUNCIL ON FOREIGN RELATIONS: Well, I'm doubtful that the gaps are actually bridgeable. I mean we've seen this going on for many months where the U.S. has been searching for a ceasefire and it seems like there's progress being made. But, at the end of the day, it falls through. And in this case, it's falling through because of Hamas. And obviously Israel gets a lot of international criticism, and understandably so because of all the civilian casualties being inflicted in Gaza.

But let's listen to what Secretary Blinken, President Biden, and other G-7 leaders are saying, which is that right now the fault lies with Hamas. They could stop the war tomorrow if they would just agree to these ceasefire terms. They refuse to do so because, as Nic Robertson was pointing out, there's every indication that the Hamas leadership thinks it's in their interest to see more dead Palestinians, because that puts more pressure on Israel.

BERMAN: This proposal has the weight of U.N. approval. You also think Egypt, Qatar, other nations are more invested - it seems like they're more invested in it this time maybe than they have been before. Does that have any sway with Hamas?

BOOT: Sure doesn't look like it. I mean Yahya Sinwar, who is hiding probably in some tunnel in Gaza, has just rejected these terms. And the Biden administration had some hopes that they could use Egypt and Qatar and other Arab states to pressure him. Clearly, it has not worked.

Sinwar is playing his own game and he doesn't seem to care how many Palestinians pay the price for continuing this war.

BERMAN: So, President Biden, on his way to Europe right now for these G-7 meetings, a hell of a lot's gone on in Europe over the last few days. These European parliament elections where the far-right parties have done very well, extremely well in countries like France, where Emmanuel Macron has called these snap elections.

How do you think that will impact the discussions over the next few days?

BOOT: Well, clearly this is going to be something that all of the G-7 leaders can commiserate over, aside, of course, from Prime Minister Meloni, the host of Italy, who is herself from the far-right. So, she doesn't see this as a threat. I would just put what happened in Europe in a little context, John,

which is, yes, the big story certainly from France in particular is the very strong showing of the national rally, the far-right party. But keeping it all in perspective, there are also a lot of countries where the far-right did not do so well. And at that end of the day, the far-right is stilled only going to be something like the fifth largest party in the European parliament. It's still the center right and the center left, which are the largest party. So, let's not exaggerate and let's keep in mind that in a few weeks' time, in the U.K., the Labour Party is almost certain to win a massive landslide election victory.

BERMAN: Right.

BOOT: So, I would not say that the far-right is taking over all of Europe, but clearly they are resurgent in France and Germany in particular. And that is something that is of mutual concern, not only to President Biden, but to his fellow G-7 leaders, in part because so many of these far-right parties are sympathetic to Russia. Some of them have been financed by Russia. And so they are not going to, you know, continue to support Ukraine if they reach power.

BERMAN: You have this book on Ronald Reagan, which is so interesting at such an interesting moment because President Biden, for the anniversary of D-day, the 80th anniversary, just spoke in places and spoke in ways very reminiscent of where and how Ronald Reagan spoke 40 years ago.

[09:10:11]

In a way - and I don't think it was a mistake, I think it was very much on purpose, suggesting that his foreign policy, Biden's, is much more similar to Ronald Reagan's than Donald Trump's is to Ronald Reagan's.

BOOT: Yes, and I don't think that was a coincidence. That was the message he wanted to convey without coming out and saying so. And it's one of these great ironies of history. In 1984, when Ronald Reagan was in Europe for the 40th anniversary of D-day, and gave, of course, his very famous speech about the boys of Pointe du Hoc, he was really talking about the need for transatlantic unity for strengthening NATO in the face of a Soviet threat.

And now President Biden is trying to deliver a very similar message about strengthening NATO in the face of the Russian threat, knowing, of course, that Ronald Reagan's own party has largely abandoned the very positions that he espoused in the 1980s. And I think he's trying to drive home the fact that, in fact, as you say, his foreign policy has a lot more in common with Ronald Reagan's than it does with Donald Trump's.

BERMAN: Max Boot, great to see you. Looking forward to reading the book. I appreciate it.

BOOT: Thank you. BERMAN: All right, a special election overnight where the Republican candidate underperforms where Donald Trump was before. So, how significant is that?

And then, a Supreme Court ruling. Could that end up helping Hunter Biden after his conviction on drug (ph) charges?

And one of America's greatest athletes - I mean a legend, no one is like this man - will not compete in the preeminent contest in his field. How can we let this stand?

(COMMERCIAL BREAK)

[09:16:30]

BERMAN: This morning, Hunter Biden is a convicted felon. He is expected to appeal his conviction on these felony gun charges. And a Supreme Court ruling on a separate case might be in his favor, or at least it's certainly something his lawyers are going to cite.

Let's get right to CNN senior Supreme Court analyst Joan Biskupic, the author of "Nine Black Robes," out now in paperback.

So, what are Hunter Biden's lawyers looking at when it comes to the Supreme Court?

JOAN BISKUPIC, CNN SENIOR SUPREME COURT ANALYST: Sure.

Good to see you, John.

It's just a coincidence that right now this case of Hunter Biden will be proceeding on appeals as the U.S. Supreme Court is clarifying the rules for when a defendant can challenge a federal gun regulation.

Right now the justices are resolving just what those standards should be. And the whole ordeal at the court traces to a ruling two years ago that greatly expanded Second Amendment gun rights. The justices ruled in a way that said that a gun regulation could be upheld only if it's part of America's historical tradition of firearm regulation. That is a very high standard to make - meet, and it's also a confusing standard for lower court judges who have tried to look at, you know, what about gun possession for someone who was a drug addict or a drug user, as in Hunter Biden's case, or in the case the justices are deciding right now, what about someone who is subject to a domestic violence restraining order and under federal law would be prohibited from owning a firearm. That individual, a man by the name of Rahimi, has challenged the case that the justices are now deciding.

And, John, they could even give us an answer as soon as tomorrow. And the question is, how does that standard from two years ago tie to the historical tradition of firearm regulation play out now for what you would think would be more modern regulation. For example, for someone subject to a domestic violence restraining order. So, we'll get more clarity from the justices on that part of federal firearms law. But at the same time, there's also a case up there that really is similar to Hunter Biden's, where a defendant is challenging a part of the federal law that prohibits gun possession for someone who either was a drug user or addicted to drugs at the time.

And a lower court has ruled that under the Supreme Court's test of two years ago, that federal law cannot be enforced. The federal government is defending that law in the case of another defendant, not at all related to the Hunter Biden case. But as you can see, John, however the justices begin to clarify this will affect how Hunter Biden might be able to appeal his gun conviction.

John.

BERMAN: Yes, no question about that. The lawyers will be pouring through the ruling word by word.

BISKUPIC: Yes.

BERMAN: Joan Biskupic, great to see you this morning. Thank you.

Kate.

KATE BOLDUAN, CNN ANCHOR: And joining us right now is Democratic strategists Keith Boykins, he's a former Clinton White House aide, and CNN's senior political commentator, David Urban, a Republican strategist and former Trump campaign adviser.

David, there is the legal reaction and the legal future when it comes to Hunter Biden's case, and then there is the political reaction to this case. I want to play for you how the Republican House speaker reacted to this verdict.

(BEGIN VIDEO CLIP)

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: But, Mr. Speaker, you have been saying two tier system of justice for some time. Here's the president's son being convicted on three counts. Doesn't that undercut your claims.

REP. MIKE JOHNSON (R-LA): IT doesn't.

[09:20:00]

Every case is - is different. And clearly the evidence is overwhelming here. I don't think that's the case in the Trump trial.

(END VIDEO CLIP)

BOLDUAN: And then there's this from James Comer. "Today's verdict is a step toward accountability, but until the Department of Justice investigates everyone involved in the purported scheme," Mr. Comer said in a statement, "it will be clear department officials continue to cover for the president." Reiterating what remains a baseless claim that President Biden has been involved in a bribery scheme.

David, is, yes, but a strong strategy on the tail of this?

DAVID URBAN, CNN SENIOR POLITICAL COMMENTATOR: Now, look, I think that these -- this case stands by itself. If - Republicans just can't acknowledge that - that justice was served here. This case was - was brought. It was a strong case. Hunter Biden faces yet another case coming up September 5th. You know, he's being tried, just as anyone else would be tried. I think that it's just - it's reality.

There are - there are - two things can be true here, Kate. You know, Donald Trump was found guilty by a jury in New York, which, you know, was overwhelmingly voted against Donald Trump in the general election, and Hunter Biden was found guilty in a state where his family is loved and beloved. I mean, you saw the jurors - the jury pool here. Lots of folks and, you know, ties to the Biden family, and he was convicted. So, I don't believe that the statement by the - by the speaker is a hundred percent correct, that there are two systems of justice here.

I think this case kind of illustrates that point. If the president had something to do with it, you think he'd let his son, his - you know, he's lost one son to a tragic death and he's got a son now whose faced some serious, serious, you know, substance abuse issues. He clearly would have put his thumb on the scale if he could have, right, to preclude this from happening, and it didn't happen. So, I think, you know, Republicans need to figure out a different talking point for this specific case.

BOLDUAN: Yes.

Keith, I want to play for you then reaction from Democratic Congressman Jamie Raskin on how - his take on how Democrats are responding.

Listen to this.

(BEGIN VIDEO CLIP)

REP. JAMIE RASKIN (D-MD): I have not heard a single Democrat anywhere in the country cry fraud, cry fixed, cry rigged, or cry kangaroo court.

You don't hear a single peep out of any Democrats saying that. Why? We believe in the rule of law.

(END VIDEO CLIP)

BOLDUAN: When they go low, we go high. Is the old is new strategy going to work for Democrats when it comes to this?

KEITH BOYKIN, DEMOCRATIC STRATEGIST: Oh, the contrast between Donald Trump and his response, and the Democrat response to what happened with Hunter Biden is stark and dramatic. It's a reflection of what American politics used to be where we believed in the rule of law and we respect the outcomes of jury trials. That's what a president and a presidential candidate was supposed to do.

The idea that Donald Trump was accusing Biden of weaponizing the legal system against him in a case in New York that Biden had nothing to do with is outrageous. And David Urban made the point, I think, precisely, that, why would he, of all people, in the - in the Hunter Biden case, if - why would you - because some Republicans, by the way, were making the argument that somehow Biden is using this case to prosecute Hunter Biden to somehow suggested that that means that he's doing it -

BOLDUAN: It's like a fall guy. It's like a cover story.

BOYKIN: It's like - yes, exactly.

BOLDUAN: And Donald Trump Jr. being one of them, yes.

BOYKIN: Right. That somehow that means he's doing it because he wants to prove that the system was fair against Trump.

BOLDUAN: Yes, it's a double - it's a double back flip.

BOYKIN: Yes. And it's so complicated. It's even hard for me to explain. And it just doesn't make any sense. And, you know, why would he prosecutors his own son to prove a point? Why would he make his son the fall guy to prove a point. It doesn't make any sense.

The other point is just ridiculous is that they keep moving the goal posts because at first they were saying that he would never be prosecuted, then he was prosecuted. Then they said he would never be convicted, in part because they said because there were black jurors and the black jurors would never convict a Biden in Delaware. And now they're making up other conspiracy theories.

Now, I think David Urban is right that they need to move on and start talking about things that we can actually make sense for the American people, like, what are they going to do about - about jobs? What are they going to do about wages and health care? And what are they going to do about housing and things that people care about. Not about Donald Trump trials.

BOLDUAN: David Urban making sense, not on my show. That's not allowed, David Urban.

URBAN: No, Kate, listen -

BOLDUAN: That's not -

URBAN: Oh, come on. And, Kate, hey, I was just going to say real quickly, you know, there were some people yesterday, or the day before, talking about how this case wouldn't have brought - be brought against Hunter Biden if he wasn't the president's son. And that may well be true, but I think, at the same time, you need to acknowledge that - what - what your colleague, Fareed Zakaria, had publicly stated, that the case in New York City wouldn't have been brought against Donald Trump if his - if the defendant wasn't named Donald J. Trump. So, I think, in that instance, both things can be true as well.

BOLDUAN: Yes.

David, this morning we are seeing the power of Donald Trump's endorsement, truly. I mean after it was put to the test in big Republican primaries last night, six candidates, these six candidates, all endorsed by Trump, all victorious. [09:25:02]

So here, you get - you get - you get a door prize. Door number one, this is a sign that - that Trump's endorsement carries more weight even though his rocking endorsement record has more to do with general election, not primaries, is carrying more weight now. Door number two, Trump has gotten better at picking winners, meaning he's actually listening to his strategies and tacticians around him. Or door number three, something else altogether.

URBAN: I like three. I like all three of them, Kate. Did I - or is this like - do I have to pick one? I think, look, I think he's gotten better at picking winners. I think his endorsement matters now more than ever. His popularity is soaring. It's through the roof. Poll after poll shows that Donald Trump is not just dominating in Republican polling, but he's dominating across the nation. And especially in Republican primaries.

And three, you know, candidates matter. When you have good candidates running in elections, they win. And so, in these Republican primaries, Trump - Donald Trump has been, you know, with the help of some, you know, allies and colleagues, been picking better candidates this time, endorsing better candidates. They have better candidates running. And his popularity (ph) is at an all-time high.

So, I think all three of your points are valid, Kate.

BOLDUAN: Door number all. I didn't give you an all of the above choice. So, I don't know where this ends. Again, David Urban not making sense is where we're going to end this program.

It's good to see you both. Thank you so much. Keith, it's great to see you.

So, coming up for us, Secretary of State Tony Blinken speaking out for the first time on the Hamas response to the U.S. backseat ceasefire deal. Blinken now questioning whether Hamas is negotiating in good faith, his words, even as he holds out hope that the gaps are bridgeable.

And a vote next hour to hold Attorney General Merrick Garland in contempt of Congress. What's at stake.

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[09:30:00]