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Federal Reserve Leaves Interest Rates Unchanged; Former VP Harris Will Not Run for California Governor in 2026; DOJ Files Memo for Unsealing Epstein, Maxwell Grand Jury Testimony; Texas GOP Release New U.S. House Maps as They Aim for 5 Dem Seats; Rep. Ann Johnson (D- TX) Discusses About GOP Proposed Congressional Map. Aired 3-3:30p ET

Aired July 30, 2025 - 15:00   ET

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

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BORIS SANCHEZ, CNN HOST: The U.S. economy defying expectations as the Fed Chair stands strong.

BRIANNA KEILAR, CNN HOST: And Jerome Powell refusing to lower interest rates after a better-than-expected economic report. Some economists warning the report is hiding concerning signs.

And an attempt to calm the uproar. The Justice Department makes new arguments to unseal grand jury transcripts in the Jeffrey Epstein and Ghislaine Maxwell cases, but it's far short of the full release of records many Trump supporters are demanding. And as we're now learning, could provide little new information.

SANCHEZ: Plus, a new way to look at the planet. How a first-of-its- kind satellite could change the way we see Earth, revealing critical insights into the changing atmosphere.

We're following these major developing stories and many more all coming in right here to CNN NEWS CENTRAL.

Thank you so much for being with us this afternoon. I'm Boris Sanchez alongside Brianna Keilar in our nation's capital. And the Federal Reserve today is flexing its independence, keeping interest rates unchanged for the fifth consecutive meeting. That despite President Trump's very public pressure campaign on the Fed to cut interest rates.

We did witness something very rare this afternoon. The Fed's decision, not unanimous this time around. Fed Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman casting dissenting votes. The first time more than one Fed governor has dissented since 1993.

KEILAR: However, the majority wanted to wait a little longer for more data to see how the economy is faring during Trump's tariff trade wars. Here's Fed Chair Jerome Powell just moments ago.

(BEGIN VIDEO CLIP) JEROME POWELL, FEDERAL RESERVE CHAIRMAN: On the dissents, you know, what you what you want from everybody and also from a dissenter is a clear explanation for of what you're thinking is and what are the arguments you're making. And that's - we had that today. The majority of the committee was of the view that inflation is a bit above target. Maximum employment is at target. That calls for modestly restrictive, in my way of thinking, modestly restrictive stance of policy for now.

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KEILAR: And joining us now to talk a little bit more about - this is Paul La Monica. He's the senior markets writer for Barron's.

This is the outcome, Paul, that we expected, no rate change. But what did you think about these dissenting board members?

PAUL LA MONICA, SENIOR MARKETS WRITER, BARRON'S: Yes, it is fascinating to see the two dissents, because as you pointed out, we haven't had two board members dissenting in three decades. But I think the market was expecting this. Both Waller and Bowman have been pretty vocal about their thoughts that rates should go lower sooner rather than later. It's also worth noting that both Bowman and Waller were President Trump appointees to the Federal Reserve Board of Governors during his first term. And also, Waller could very well be the next Fed Chair if President Trump decides to nominate him to succeed Jerome Powell. Jerome Powell's term ends in May 2026.

Trump has been very critical of Powell, obviously, as we all know. And it's no secret that, you know, Powell isn't going to get a third term. There's even been all that speculation about whether or not the president wants to force him out prematurely, although that talk seems to have died down.

SANCHEZ: Yes. That is important context. To be clear with our viewers, these two dissenters, they wanted to lower rates by a quarter of a percentage point.

[15:05:06]

So, not exactly something dramatic. From a strategic standpoint, why do you think Powell and the rest of the governors decided to hold rates where they are?

LA MONICA: Yes, it's a great question. Remember, the Fed has two, quote-unquote, "mandates." They have to be looking at price stability and maximum employment. The job market is still fairly healthy. We had a pretty strong number from ADP this morning about private sector job growth. We're going to get the latest monthly jobs report from the government on Friday, expected to show continued steady gains in payrolls as well as an unemployment rate that probably remains around 4.1-, 4.2 percent, which is pretty low.

And at the same time, inflation pressures have obviously receded from the peak post-pandemic supply chain nightmare we all lived through when, you know, consumer prices were above 9 percent. But now we're still seeing sticky inflation and there are concerns that tariffs will just make that worse. And they're only now starting to affect some of the price data that we're seeing from the government with regards to official inflation numbers.

KEILAR: Yes. Really interesting day today.

Paul, thank you so much for taking us through that. We do appreciate it.

We are going to look at some breaking news right now. Former Vice President and 2024 presidential nominee Kamala Harris says she will not run for governor of California.

SANCHEZ: And CNN's Eva McKend joins us now alongside CNN Political Director David Chalian.

Eva, you have a statement from the former Vice President. What does she say?

EVA MCKEND, CNN NATIONAL POLITICS CORRESPONDENT: Yes, Boris and Brianna, I'm just getting off the phone with my sources who are telling me that this was a pained decision for the vice president - one former vice president, one that she thought about for a long time, even consulted former California governors to make this decision, to find out what kind of power she would have in that role.

So, she's telling us now we must recognize that our politics, our government and our institutions have too often failed the American people, culminating in this moment of crisis. As we look ahead, we must be willing to pursue change through new methods and fresh thinking, committed to our same values and principles, but not bound by the same playbook. For now, my leadership - and public service - will not be in elected office. I look forward to getting back out and listening to the American people, helping elect Democrats across the nation who will fight fearlessly, and sharing more details in the months ahead about my own plan."

MCKEND: So, bottom line, she could not run for both governor and president in 2028. And this decision leaves the window or the lane for her to maybe decide to do that at a later date.

KEILAR: Yes. What do you think of the news, David?

DAVID CHALIAN, CNN POLITICAL DIRECTOR: I - to the last point that Eva was saying, like, I'm not sure that this indicates that she wants to run for president again, a third time in a row. She did that the last two cycles, of course. But what it indicates to me is she didn't want to be governor of California. Like, the - one of the things that Gavin Newsom, the current governor and a longtime friend of the former vice president from their days in San Francisco, sort of advised her about was, as you're making this decision, you know, it's not just a stepping - like, think about the job, right, that you would like - and I think she clearly came to the conclusion that right now she didn't want to serve as governor of California. That wasn't her driving passion or ambition at the moment.

And I think you are going to see her be a force on the '26 midterm campaign trail, no doubt. So, it preserves all of her options for the future. But in no way do I think we should read into this and say Kamala Harris is now absolutely going to make yet another run for the White House in '28.

SANCHEZ: To your point about being active in the run up to the midterms, in her statement, she finishes by saying, I will remain in the fight. What exactly is that going to look like?

CHALIAN: I mean, I think she's going to be a huge draw for donors and for certain constituencies within the Democratic Party throughout the midterm campaign season. I mean, she is a celebrity star Democrat, no doubt, after being the nominee last year, even though she came up short, obviously.

I do think the language in her statement is really intriguing about institutions and government and politics sort of having failed Americans, creating this moment of crisis. A, it's sort of distant from her own role in those things, right, but that's one thing. But B, it grabs on to what we are hearing is one of the real big critiques that we are seeing out in the country, which is that Democrats appear to a lot of voters being in sort of the position of defending a status quo that voters aren't all that interested in. And I think she is reflecting that she hears that in what she's putting forth in the statement.

KEILAR: Yes. And also, you know, governor of California versus governor of California during a Trump administration when California has been such a lightning rod. That's sort of a different thing, right?

[15:10:07]

I also wonder, how has she been spending her time, Eva? As you've been talking to sources, what has she been doing since her loss?

MCKEND: Right. She hasn't been all that visible. She's popped up here and there at different events. She addressed a group of black Democratic women a few months ago. But she's largely been using this time to have these tough conversations about what her next steps will be. I think that statement also indicates, though, that now that she has made this decision, that she might be more visible, that she wants to travel around the country and have these conversations with Americans.

SANCHEZ: I imagine that also for some of her potential competitors, if she decides to run in 2028, it kind of gives them an idea of what that race may or may not look like.

MCKEND: It does. And it also clears the field for the California race. Katie Porter, former HHS Secretary Xavier Becerra, now he - they have the opportunity to really run their race here because she kind of froze the field as she was deciding.

CHALIAN: Yes. In fact, some of them had said that if Harris had decided to run for governor, they may beg off the race. Others refused to go there to preserve their option. And now, without sort of a big name like Kamala Harris getting in the race, it'll be very intriguing for that intra-party Democratic battle about who's going to try to succeed Gavin Newsom.

SANCHEZ: We'll certainly be watching it closely. David Chalian, Eva McKend, thank you both. Appreciate it.

Still plenty more news to come on CNN NEWS CENTRAL. Texas Republicans releasing a new district layout in the state that could give them a big advantage in the midterms.

Plus, we're following the cross-country investigation into the Midtown Manhattan mass shooting, including the contents of a note found inside the gunman's apartment.

KEILAR: And then later, pressure mounting on Israel to end the fighting in Gaza as seven more Palestinians die from starvation within the last day. A second country in Europe now threatening to take action. We'll have that and much more coming up on CNN NEWS CENTRAL.

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SANCHEZ: Intense public interest. Those are the direct words from the Trump administration as it makes new arguments today to unseal some grand jury testimony related to accused sex trafficker Jeffrey Epstein. But even if the judge overseeing the request allows it, it's still unclear whether the release would satisfy Trump supporters demanding even more transparency. CNN Chief Legal Affairs Correspondent Paula Reid is standing by.

And Paula, you're learning more about these grand jury transcripts that the DOJ is open to releasing and specifically the witness testimony.

PAULA REID, CNN CHIEF LEGAL AFFAIRS CORRESPONDENT: That's exactly right, Boris. You may remember about 10 days ago, the Justice Department leaders with the attorney general and the deputy attorney general made an unusual request to unseal grand jury transcripts from the investigations into Jeffrey Epstein both in Florida and New York. Now, as I noted, this is an unusual request. This material is by default confidential.

But in their filing, they argued the intense public interest in these materials. But of course, this request came at the same time the administration was facing significant backlash over its decision to backtrack on its own promise to release additional Epstein materials that are within their power to do so.

Now, in Florida, the request was denied. But in New York, the judge said the public interest wasn't enough and he wanted more information from the administration. So, last night, they provided some additional details to the court in an attempt to get some of this unsealed. But what was most notable is the fact that they confirmed that in this grand jury, the grand jurors only heard from two witnesses, both law enforcement officials. Now, this is pretty common. You don't present your full case to the

grand jury. The bar is lower for an indictment. So, usually you save in this case testimony from victims or any other blockbuster witnesses for your trial in open court, which is what they did with Maxwell. The reason this is notable is because this has always been considered kind of a long shot for the administration to prevail here. But even if they did, if they're only talking about two witnesses, it is unlikely that even if they are able to get these transcripts unsealed, that this is going to quell the firestorm over their lack of transparency around this case.

SANCHEZ: Yes. And separately, on Capitol Hill, Paula, Senate Democrats looked at a century-old 1920s law that would compel DOJ to share information with them based on a national security basis. Walk us through the details of this attempt to get information from DOJ.

REID: Yes, Boris, we all love a century-old arcane law. And here, this one allows five or more members of the Senate Homeland Security Committee to request materials from the administration, even when they're in the minority and they don't have a subpoena power. Now, in a letter to the Attorney General, the Senate Dems wrote, quote, "After missteps and failed promises by your Department regarding these files, it is essential that the Trump Administration provide full transparency. We request all documents, files, evidence or other materials in the possession of DOJ or FBI related to the United States of America v. Jeffrey Epstein," so the investigations.

Now, source familiar with the thinking at the Justice Department tells me they're not going to share these materials with lawmakers. I mean, that's pretty common. This is what we've seen in the past with similar requests. But because this is, again, a novel legal theory, this could set off a court fight between Democrats and the administration, and that could yield some documents. But it will also likely, if this is the way it goes, keep this story in the headlines for months to come.

SANCHEZ: Paula Reid, thank you so much for the update. Brianna?

KEILAR: Republicans seem to believe the fight for House control in next year's midterms could come down to Texas, as President Trump has suggested. And today, state Republicans there released a new map that redraws congressional districts to give the party an edge in 2026.

[15:20:05]

Currently, the congressional districts in Texas are divided like this, 13 Democratic seats, 25 Republican seats. But if Texas Republicans get their way, the map could shift to just eight Democratic seats and 30 Republican seats. The new map will no doubt be on the agenda for House Democratic Leader Hakeem Jeffries, who is expected to visit Texas today to try to help figure out a countermove.

We're joined by Ann Johnson, who is a Democratic member of the Texas House representing the Houston area.

Thank you so much for being with us. What is your reaction as you've taken a look now at this proposed congressional map that Republicans in your state have just put out?

REP. ANN JOHNSON (D-TX): Well, it's an obvious blatant power grab by Gov. Abbott, who seems to not be able to tell Trump no. And just as you pointed out, the map has just dropped. It's been thrown on Texas legislators as we're getting ready in this special session where we should be addressing more significant issues for our state. Nobody is asking for this except for Trump. And it is purely intended to try to protect him from the will of the voters.

We know that what he has passed recently and what he calls the Big, Beautiful Bill, but is really ugly, ugly for us. And the fact that there are going to be millions more people that are going to be cut off their health care, their access to coverage. And, of course, we're all going to pay the price for that. And so, voters are not happy about what they're doing in D.C. And so, he wants to take away the power of their vote, change their lines and pick their elected officials.

KEILAR: You have the House minority leader meeting with Texas House Democrats in Austin today, Hakeem Jeffries there. What are you expecting to hear from him? What do you want to hear from him?

JOHNSON: We're grateful that he is here and we are grateful to have Democrats nationwide paying attention to what's happening here in Texas, because this is what we always see. What they start with here at home in Texas, they're going to carry to your places. And so, Trump believes that he can get his party to uphold his will and violate the will of each and every one of our constituents. And if they will do it here in Texas, then you've got to be prepared. Do your folks have the backbone to stand up to him? Because we're not seeing that here.

And so, I am grateful that Leader Jeffries has come in to visit with us. We look forward to continuing to talk with him about what we all need to do to fight these discriminatory maps and protect the will of the voters and the voice of the voters.

KEILAR: With that national attention is also coming some national pressure on Democrats there in the Texas House to break the quorum of this special session that is dealing with redistricting. It's also a special session that is dealing with the state's flood response, which is something that broadly Democrats certainly want. Are you planning as Democratic members of the Texas House to try to break that quorum? Are you planning to walk out?

JOHNSON: Well, I'll be in Kerrville tomorrow as part of the committee that is looking at the tragedy that happened in Central Texas, which we're going to continue to work on what we should, which is to try to bring relief to those families that have suffered, but more importantly, to try to have good policies that will prevent this in the future. Policies of which Democrats have been advocating for and asking for some time.

When you ask about the idea of a quorum break, I think it's really important for people to remember, this is not a constitutionally protected tool put in place by our founding fathers. When the majority goes off the rails and in this circumstance to corruptly try to steal the voters' voice and their districts on behalf of Trump, and then I think Democrats in Texas are prepared to do whatever needs to be done to try to advocate and uphold the voters' right to have their voices heard.

KEILAR: So, it certainly sounds like you are really considering it. I mean, are you leaning towards it? How would you characterize your position?

JOHNSON: I think everybody recognizes that we need all tools available to us. And I am just grateful that the founding fathers of Texas recognize there may be a time where you need this tool. It is an extraordinary act. It is an extraordinary act, but it is only to be used in a circumstance where the majority has gone so far awry of the interest of everyday Texans.

KEILAR: Is this one of those?

JOHNSON: I'm grateful the tool is there, but you shouldn't have to - we shouldn't have to be in a position to use it. And so, right now, Texas Republicans continue to show that they won't stand up to Trump. And I think that's what everybody around this nation needs to recognize. If Texas Republicans in a state that's run by Republicans, if they can't stand up to Trump, if they don't believe they have the backing of their constituency to do what's best and they will do whatever Trump is asking them to do, then everybody needs to be concerned about where we are in the nation.

[15:24:59]

And so, this is, of course - this is the first state they're trying it in. And I do think it's incredibly important that Democrats have available every tool and be prepared depending on what happens to stand up for the voices of every constituency in Texas.

KEILAR: Democrats have tried quorum breaks twice, and it hasn't worked actually, which you're certainly aware of. I think maybe some people looking in on your state or not. Do you have concerns, even if you did use it, it might not work?

JOHNSON: Well, even if you just look at the process, right, Gov. Abbott can continue to call us back. He has the mechanism to do it. And so again, does Gov. Abbott, is he interested in keeping a coalition of people in Austin to solve the crisis of the floods and address the issue of 137 people dying? Or is he more interested in the House debating a power grab and stealing five seats away from the people of Texas? This is really up to Gov. Abbott.

KEILAR: All right. State Representative Ann Johnson, thank you so much for being with us.

JOHNSON: Thank you.

KEILAR: We're learning of a second note written by the gunman behind Monday's deadly mass shooting in midtown Manhattan. We'll tell you what it reveals as the medical examiner decides whether the shooter's autopsy will include the brain test that he asked for. (COMMERCIAL BREAK)