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Joint Status Report Due Today In Trump Election Subversion Case; Trump Seeks To Move NY Criminal Case To Federal Court; Fed's Preferred Inflation Gauge Held Steady In July; Markets Betting On An Interest-Rate Cut In September; Labor Day Air Travel Expected To Cap Record-Setting Summer. Aired 1:30-2p ET

Aired August 30, 2024 - 13:30   ET

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

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[13:32:55]

BORIS SANCHEZ, CNN HOST: We should soon learn more about how Special Counsel Jack Smith plans to move forward with his reworked indictment against Donald Trump in the 2020 election subversion case.

A status report from both sides is due today that should lay out a proposed timeline and address how they think the courts should handle questions about immunity.

Meantime, the former president is also trying to get his New York criminal case moved into federal courtroom. His sentencing in that case is set for next month.

Joining us now to discuss Trump's legal strategy is former Trump attorney, Bill Brennan. He represented Trump in the second impeachment trial, and also represented the Trump Payroll Corporation before New York Judge Juan Merchan.

Bill, thank you so much for being with us.

Do you think former President Trump is going to be sentenced in that hush money case on September 18th or do you think his team will be successful in their attempts to delay?

WILLIAM BRENNAN, FORMER TRUMP ATTORNEY: Good afternoon, Boris. Thanks for having me.

I don't think that he'll be sentenced on the 18th for a couple of reasons. The Manhattan district attorney's office apparently has indicated that they would not be opposed to a continuance until a date after the presidential election.

And I understand that the former president's attorneys have filed a motion to remove the case to federal court. And whether or not that happens I can't predict.

But it seems to me, if you take the order that Judge Merchan signed in July continuing the sentencing until September, and in that order, I believe he used verbiage akin to the sentencing, if necessary, will occur in September.

If you take that combined with the Bragg office directive that they're not opposed to continuing it, I think the tea leaves would point to a continuance.

SANCHEZ: You mentioned the petition to move the case to federal court. His lawyers are citing, quote, "extraordinary significance" in the Supreme Court's immunity decision. I'm wondering if you think that decision gives grounds to move that case to federal court.

[13:35:06]

BRENNAN: Well, that decision, Boris, was really wide ranging, very sweeping. It gave presidents almost blanket immunity. Certainly they have complete immunity for anything they do in their official capacity. They have presumptive immunity for any other official acts.

So it could be a very unusual move to move the case to federal court, but that Supreme Court decision is a very unusual decision. So it could happen.

(CROSSTALK)

BRENNAN: I don't think it will, but it could.

SANCHEZ: It is also impacting the federal election subversion case. That's why you had the special counsel file a superseding indictment. Do you think it does enough to circumvent any potential obstacles created by the immunity decision?

BRENNAN: Well, we'll find that out when Jack Smith lays out for the judge -- I think today they are scheduled to talk about how they want to proceed. And on the 5th, I think there's a hearing to set dates.

But what Jack Smith did is he took out the counts and verbiage that he believes are affected by the United States Supreme Court decision on presidential immunity.

It basically excised or removed from the indictment all of the allegations that purport that the former president used the Department of Justice, basically weaponized the Department of Justice. That's gone.

Just in terms of volume, the indictment went from 45 pages to 36 pages. I mean, that's a lot of -- that's a lot of meat to cut off the bone. So he apparently thinks he can survive this way. And I guess he really had no other move.

And, frankly, it's a slick move on his part. But we'll see if there's enough left to proceed. And if what's left to proceed does or doesn't affect presidential immunity issues.

SANCHEZ: Bill Brennan, thanks so much for the perspective. Appreciate you joining us.

BRENNAN: Thank you, Boris. SANCHEZ: Of course.

Coming up, Fed Chief Jay Powell just got a green light that it's safe to cut interest rates from a new inflation report. We have the details on those numbers in a few minutes. Stay with us.

And later, good news about gas prices just as people hit the road for the Labor Day weekend.

We'll be right back.

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[13:42:07]

SANCHEZ: New numbers in the Fed's go-to inflation gauge show that inflation came in fairly tame in the most recent report. The PCE is the Personal Consumption Expenditures Index. And it clocked in at just a rise of 2.5 percent over the last year ending in July. That's seen as a win in the fight against inflation.

Let's join CNN's Matt Egan now to break down these numbers.

Matt, what exactly does this mean?

MATT EGAN, CNN REPORTER: Well, Boris, this is another positive sign when it comes to the cost of living. It doesn't mean that life is suddenly cheap, right? It's not. It doesn't mean that prices are plunging across the economy. They're not.

But it does show the prices are going up at a more gradual pace and that is exactly what we want to see. And 2.5 percent year over year.

Some context, that is slightly better than expected. And it's tied with last month for the lowest rate since February 2021, the first full month of the Biden administration.

And when you look at the trend here from that chart, you can see that even though inflation is not quite back to that 2 percent goal that the Fed has, it is moving in the right direction, making a massive improvement from two years ago when this metric was above 7 percent. I mean, that was alarming.

That's why the Fed had to step in with these massive interest rate hikes. Interest rate hikes that we're still feeling the effects of.

So the fact that this is all cooling off suggests that all that tough medicine from the Fed is working. And importantly, paychecks. Paychecks are now consistently growing faster than prices. And that is another positive -- Boris?

SANCHEZ: And for interest rates, Matt, does that mean that an interest rate cut next month is now inevitable?

EGAN: Boris, all signs continue to point to an imminent interest rate cut at the next meeting less than three weeks from now. This is the last time the Fed meets before the election.

And this looks like a slam dunk before today's inflation report. It still looks that way right now. A 100 percent chance priced into the market of that rate cut.

But the question is, how big of a cut? Now investors are pricing in about a 70 percent chance of a small cut, 25 basis points. This would still be the first cut since Covid.

But there is still a significant 30 percent chance of an even bigger cut of 50 basis points. Either way, it means lower borrowing costs for mortgage rates, for car loans, for credit cards.

And I know that a big rate cut might sound good, but it would suggest that the Fed is getting more concerned about the state of the jobs market.

Because remember, a week from today, we get another jobs report. And if it comes in weak, if it shows more cracks in the jobs market, then, yes, maybe the Fed decides that they've got to come to the rescue with a bigger rate cut.

Of course, that would be kind of an ominous thing. So it wouldn't be the worst thing, Boris, if the Fed ends up deciding they can just gradually start cutting interest rates.

[13:45:00]

SANCHEZ: Matt Egan, thanks so much for breaking that down for us.

Brianna?

BRIANNA KEILAR, CNN HOST: Now to some of the other headlines we're watching this hour.

One Dallas police officer is dead, two others are injured after a shootout with a suspect. This started after an officer in distress call went out late last night. Responding officers found one of their colleagues in his patrol car with a gunshot wound.

The officers who arrived on the scene then exchanged gunfire with a suspect. Two of them were shot during that exchange. The suspect then fled, only to later die during another shootout with officers.

The Dallas police officer's death brings the number of officers who have died in the line of duty to at least 93 this year.

And just a devastating loss in the world of hockey. Columbus Blue Jackets Star Johnny Gaudreau and his brother were struck and killed while riding their bikes in New Jersey by a suspected drunk driver. Police say the SUV was trying to pass two slower moving vehicles.

Johnny Hockey, as he was known, was a seven-time NHL all-star. The Blue Jackets say they are shocked and devastated and that they "will do everything that we can to support his family and each other through this tragedy." Boudreau was just 31-years-old. And new video this morning showing the devastating flooding that

destroyed the Smithtown Library on Long Island. Stunning pictures here. Floodwaters just bursting through a wall, rushing through the entire bottom floor of the building. It destroyed equipment, books and much more.

This building is actually home to many historical documents, including a letter signed by Thomas Jefferson. Officials say that the library building will be closed until further notice while they assess the damage and rebuild.

Millions of Americans are on the move today as we mark the unofficial end of summer. I know, it's sad. And we're live from two busy airports, next.

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[13:51:27]

KEILAR: Happening now, it is shaping up to be one of the busiest Labor Day weekends ever. Just today, the TSA is predicting nearly three million passengers here will pass through airport security nationwide. And about 17 million will be traveling for the holiday weekend.

And traffic, my goodness, the roads are likely to be crowded, of course. It does help that Labor Day gas prices are near the lowest in three years, saving drivers millions of dollars.

SANCHEZ: Brianna, you know what this means.

KEILAR: What's that?

SANCHEZ: You've got to pack your patience.

(LAUGHTER)

SANCHEZ: We have complete coverage. CNN's Pete Muntean is at Reagan National Airport near Washington. And CNN's Rafael Romo is standing by at Atlanta Hartsfield-Jackson.

Pete, you are the biggest patience packer I know.

(LAUGHTER)

SANCHEZ: How are travelers doing so far today?

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Boris, I heard a new analogy from TSA today. The line getting longer here, they say it is like a Chick-Fil-A. The line might look long, but it moves efficiently.

In fact, I just checked the wait times ear for the north checkpoint here at terminal two at DCA, 11 to 14 in minutes for general TSA checkpoint, five to eight minutes for TSA pre-check.

In fact, I just talked to the local head of TSA here at the airport. He said there are anticipating 40,000 passengers passing through the TSA checkpoint here today, a number unheard of since even before the pandemic, even bigger than before the pandemic.

The big thing here is that airlines are really in recovery mode after a lot of bad weather passed through here in the mid-Atlantic yesterday.

About one in five flights canceled at Washington Dulles, just around the corner here. About one-third of all flights delayed here at DCA. Also about a third of all flights delayed out of Philadelphia just up the way.

Although I want you to listen now to passengers who are really trying to take this all in stride for what could be a record-breaking Labor Day weekend for travel.

Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED AIR PASSENGER: It's been pretty good (ph). I think that we have a long layover so. I don't like being stuck in the airport, but given the fact that it's Labor Day weekend, it hasn't been too bad.

(END VIDEO CLIP)

MUNTEAN: We are in the rush now. And the FAA is warning of possible ground stops as the day goes on and as those afternoon thunderstorms build. We're talking the New York metro area, the D.C. metro areas, Charlotte, Atlanta, the biggest hub for American -- for Delta Airlines, rather.

Also into Texas, in Houston and Dallas, a big hub for American and Southwest Airlines. So we are not out of the woods yet.

We should see the cancellations and delays climb today, although they've been relatively at bay so far for this Friday, likely the biggest day of the holiday weekend rush.

KEILAR: And, Rafael, you we're at the busiest airport in the world. How's it looking there?

RAFAEL ROMO, CNN CORRESPONDENT: Yes, I'm going to have to borrow Pete's phrase. He said a moment ago that the lines are long but efficient and that's exactly what we saw here earlier.

Brianna and Boris, it was a lot of people wave after wave of people. But it seems like TSA so far has been able to handle all the crowds.

And we are right in front of the main security checkpoint here at Hartfield-Jackson International Airport and there's hardly any wait right now.

[13:54:52]

And the numbers, we have to really talk about it and put them in perspective because we were talking about 17 million people this week around the Labor Day holiday.

It's like asking everybody in the Chicago metro area and the Dallas metro area to book a flight within the same week. That's what we're talking about.

And I was talking to individual passengers earlier today and they shared with us some of the challenges that they had in trying to get to the airport.

Let's take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED AIR PASSENGER: It was a nightmare trying to find parking here so much so that I had my fiance loop around and to find a parking spot and let us go here. So we're lucky to even find a parking spot.

UNIDENTIFIED AIR PASSENGER: Hopefully, TSA precheck isn't so horrible. That's how I planned. And also getting here early, getting here as early as possible.

(END VIDEO CLIP)

ROMO: One final thing, Boris and Brianna. The average for a gallon of gas nationally today is free $3.35. Compare that to $3.81 a year ago.

Now back to you.

SANCHEZ: A good day for travel. Again, got to pack that patience.

KEILAR: Pack it.

SANCHEZ: Got to pack that patience.

Rafael Romo, Pete Muntean, appreciate you both. Thanks so much.

So will he or won't he? The question remains over whether former President Trump will vote for Florida's six-week abortion ban, legislation made possible by the overturning of Roe versus Wade.

Another hour of NEWS CENTRAL is on the way.

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