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Moody's: Iran War Costing U.S. Households $2,000 Each; GOP Super PAC Cuts Ad Bookings in Multiple House Battlegrounds; Apple Unveils AI-Powered Smart Display; Collins and Jackson Debate Tonight in Close Senate Race in Maine; Schedule Change Allows Atlanta Dream to Play in Bigger Arena. Aired 3:30-4p ET

Aired October 13, 2026 - 15:30   ET

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

[15:30:00]

BORIS SANCHEZ, CNN HOST: The war with Iran has sent economic shockwaves throughout the U.S. and the world, and today we're getting some new data about how much it's actually costing American families. CNN's Matt Egan is crunching the numbers for us, so Matt, Americans have been dealing with high prices for some time, but now it seems like they're having to spend more because of the war.

MATT EGAN, CNN SENIOR REPORTER: Yes, absolutely, Boris. I mean, think about it, gas, diesel, jet fuel, mortgage rates, they've all gone up. This war, it might be taking place thousands of miles away from most Americans, but the financial impact, you can feel it here in the U.S. So Moody's Analytics calculates that so far, the war has cost consumers $265 billion. That works out to about $2,000 for the typical U.S. household. And keep in mind, this is a running tally. So the longer the war goes on, the more it will cost.

How did it get to this $2,000 per household figure? Well, not surprisingly, the biggest factor here is energy prices. That's $1,100 per household.

And at current fuel prices, this goes up by $50 per week. Then there's borrowing costs, right? We have high inflation.

The Fed is raising interest rates for the first time in three years. The bond yields have gone significantly higher. Borrowing costs, that's another $540 per family.

Again, that's mortgage rates, credit cards, car loans, all of them gone up and all of them got more expensive. And then there's the direct costs of the military conflict. That's another $360 per family, according to Moody's.

Just to break down some of these specific items here, the top three here, these are all energy, right? And so whether it's gas or diesel or jet fuel, before the war, all of them were relatively cheap, right? Gas was below $3 a gallon, not anymore.

You can see all of them have gone up dramatically in price. All of them are now pretty elevated. And then there's the borrowing costs. Before the war, mortgage rates were just below 6 percent. Now, nearly 7.5 percent. And when you look at gas prices, so gas has not gone as high as it did four years ago. But still, we are looking at a historically long period of time with elevated gas prices.

In fact, gas has now been at or above $4 a gallon for 165 days so far this year. That is more than any other year on record. The next closest was four years ago under President Biden with 158 days.

So bottom line here, Boris, cost of living. That was the biggest frustration with this economy. That's the thing the president promised to fix.

The war has made it worse, clearly. And it's no wonder that the war is so unpopular because it's just been so expensive for consumers. Back to you.

SANCHEZ: Matt Egan, thank you so much for that.

So polls consistently show the economy is top of mind for voters with the midterms now just three weeks away. Let's discuss with former press secretary for then Vice President Joe Biden, Kendra Barkoff. She's now the managing director for the public affairs and political consulting firm SKDK.

We also have former Trump administration official and president of Valcour Global Public Strategy, Matt Mowers. Thank you both for being with us.

I think I heard you chuckle, Kendra, when Matt was doing his presentation on prices. What is it about this affordability issue that Democrats feel that they can persuade voters to come back to them on?

KENDRA BARKOFF, FORMER PRESS SECRETARY FOR THEN-VP JOE BIDEN: Well, I think when voters go to the grocery store and try and buy anything and the prices continue to go up, when Donald Trump made promises that he was going to take the prices down, that is an easy sell for voters. Maybe if I vote Democrat this time around, maybe the prices will actually go down, right?

Trump made a whole bunch of promises about not getting into another war, about gas prices coming down, about mortgage rates coming down, about inflation coming down. And clearly none of that has happened. And so it's an easy sell to go and say to an American voter, hey, this is what has happened under Trump.

It'll be very different if you vote a Democrat during the midterms.

SANCHEZ: Matt, obviously President Trump during the 2024 campaign suggested that fixing the economy was going to be easy for him, a businessman. That hasn't really happened given tariffs, given the war with Iran. How do you now go back to your base and say promises made, promises kept?

MATT MOWERS, FORMER TRUMP ADMINISTRATION OFFICIAL: Well, you've seen both the president and certainly the vice president go out there on the campaign trail and say it's going to take more time to actually fix the economy. They're reminding voters what they inherited. There's a reason why you saw the new press secretary, Katie Zacharia, mentioned the Biden administration today.

It's the reason why you saw Karoline Leavitt when she was press secretary frequently referenced that. They're trying to remind the American people where they were four years ago and where they are trying to dig out from.

[15:35:00]

Now, look, it's a slow process and there are some positive indicators mixed in with this stubborn price of gas and goods, you know, relatively high, you know, I'm sorry, relatively low unemployment.

You've got stock market near record highs. You've got poverty rates near 50 year lows. You've got, you know, a, you know, significant, relatively low unemployment, more people working in wage growth right now. So those are some good things. They still have to address affordability.

The president's out there consistently saying that once we get through the conflict with Iran, the price of gas goes down, the price of goods, therefore, goes down. So he's trying to say, stick it out with me. We'll get this done once we're done with Iran.

SANCHEZ: Wage growth that isn't quite keeping up with inflation, we should point out. We learn more about Trump's upcoming schedule today. He is headed to Alaska, Arizona, Montana, Georgia, Kentucky, Florida eventually, I think he's going to a Tampa Bay Buccaneers, Pittsburgh Steelers game.

And then I believe he also confirmed that he's going to Kansas, too. Where do you think the president might have the biggest impact, Matt?

MOWERS: Well, look, these are some states that have overwhelmingly voted for Donald Trump just two years ago. You still have a significant party registration advantage for Republicans in a number of those key states. There are also places where, because of all the issues we just talked about, you have very competitive elections, but they're winnable elections.

And so the president's going, he's going to shore up a number of these incumbent senators, whether it's Roger Marshall in Kansas or he's out in Alaska with Dan Sullivan today, whether it's going down to Florida to help Byron Donalds at the gubernatorial level. I know the White House feels like Ashley Moody, the incumbent Republican senator, is in pretty strong place, but he's going to go out there and drive turnout. Traditionally in midterm elections, ticked off people show up and vote.

The people who are ticked off are not going to vote Republican. So you've got to try to find a way to motivate your own base to show up. That's what the president's doing.

SANCHEZ: But when he goes to Georgia, he's going to campaign alongside two candidates, two Republicans that are facing tough fights, specifically in the Senate race going up against Jon Ossoff, Mike Collins. They have a debate tonight and notably Democrats have actually, the top Senate PAC has called off ad spending for the week as this debate is about to go on. They feel very confident that Ossoff is in a good place.

Do you see that race as a done deal, Kendra?

BARKOFF: I think if you watch the last debate where Jon Ossoff, I mean, for all intents and purposes crushed his opponent, yes, I think that that money can be spent in much places where there is a little bit of a toss up still. And going back to Alaska, there are some villages in Alaska where gas is above $20 a gallon. When you take into account heating costs up there, when you take into account that goods and services are already super expensive, they have to fly from one place to another.

There's no roads in Alaska to drive some of these goods and services. Gas is up. Diesel is up.

He is going to have a very, very tough sell in the state of Alaska in particular, given just how high those prices are for the native Alaskans.

SANCHEZ: So Democrats pulling ad spending there, Republicans are pulling ad spending elsewhere, specifically in house races for different reasons. You have the largest super PAC cutting off Republican incumbents. Marionette Miller-Meeks in Iowa, Thomas Kaine in New Jersey also pulling out of seats they're trying to flip in Minnesota -- or rather Michigan and Ohio.

Privately, Republican officials have said that it just doesn't look good in these races. I wonder if you think that it's the right move, Matt.

MOWERS: I mean, look, these are difficult judgment calls. And anyone who's been on that side of trying to decide where allocating some precious resources in the final few days, you have to look at where are you going to be able to spend to keep it close and where you can be able to spend to actually get a win. And those aren't always the accurate calls.

I mean, you know, folks, if you look at the rearview mirror, often make spending decisions and they wish maybe they had spent it differently. But clearly, they believe that there are certain races that are still winnable. There are certain races they want to go and put on the board and some that they're trying to take off.

SANCHEZ: Is it a sign that perhaps the House is out of reach?

MOWERS: I don't think so. Not yet. You know, it's certainly an uphill battle.

And past this prologue, it was always going to be an uphill battle. But they certainly also have more money than they've ever had before. They being, you know, Congressional Leadership Fund, the super package is talking about the National Republican Congressional Committee under Richard Hudson, congressman from North Carolina.

They've raised more money than they ever have before. It's one of the only times they've had more resources than their Democratic counterparts. So they have more money to spend.

But even still, you've got to try to figure out where you can put those dollars in the final few weeks.

SANCHEZ: Matt Mowers, Kendra Barkoff. We have to leave the conversation there. Appreciate the time. Thanks so much.

Still ahead, step aside, Alexa, Apple unveiling its biggest push into the smart home market in years. The details on their AI strategy, when we come back.

[15:40:00]

(COMMERCIAL BREAK)

SANCHEZ: So Apple is bringing its AI ambition straight into your home. The company just unveiled a new gadget, the Home View.

It's a smart display featuring a revamped version of Siri. CNN Business Tech Editor Lisa Eadicicco joins us now. Lisa, what exactly does Home View do?

LISA EADICICCO, CNN BUSINESS TECH EDITOR: Yes, Boris. So as you mentioned, this is really meant to be a smart home hub and a display. So you can use it for things like playing music, making FaceTime calls.

But also what this really does is bring Siri into the home in a bigger way. The idea is that you'll be able to talk to Siri AI without having to reach for your phone. But also the device can recognize different members of the household and adjust what it's showing on screen accordingly.

So, for example, if I walk into the room, it should know to show the things on my calendar or maybe updates from my apps compared to my husband's apps or someone else in the household. And this is a really big deal here because Apple's whole AI push, the thing that it says separates it from other competitors like ChatGPT and Google Gemini and Claude, is that it has all of this context about you because Siri is built into your iPhone.

[15:45:00]

So now what this does is that it gives Apple kind of a step beyond that in addition to just what you're doing on your phone, it now has more of a window into what's going on in your life in the home. And that's really an important part of this for Apple. And I should also note that this is really something that's been a long time coming for Apple.

It's had a lot of catching up to do in the smart home race. It's really largely Amazon and Google that dominate the market for devices like this. And this is the biggest push that Apple has made into the home in about a decade really since it introduced the original HomePod.

So really what this does is it gives consumers another surface to interact with Siri AI, which I do think is going to be really, really critical for Apple's product strategy moving forward.

SANCHEZ: Apple isn't the only company with some new AI gadgets. Meta unveiled these new virtual reality glasses. Tell us about those.

EADICICCO: Yes, so those glasses which Meta announced last month will be coming out in the spring and I had a chance to try them. Now, if you're familiar at all with Meta's wearable devices, this is pretty different from what you've probably seen. It's not quite a VR headset.

It's also not a pair of smart glasses. It's a little bit like something in between. The idea is you put these glasses on, and they show a virtual display and apps over the environment that you're seeing.

So, for example, if I'm traveling and I don't have a computer monitor with me to do work, the idea is I can put these glasses on and see these three virtual displays in front of me that I can work on. And, again, this is different from Meta's other smart glasses. Those are more meant to be worn on the go, like the Ray-Ban glasses, for example.

And Meta, by the way, also announced a new version of those Ray-Ban glasses as well that launched today. But this new version doesn't have cameras. And that comes after the company has been caught in a lot of privacy controversy around the cameras on its glasses.

But really, the common thread here as well is that what these glasses do for Meta in terms of its product strategy here is it gives consumers a more frictionless way to interact with its Muse AI agent. And I do think that's the end goal here for Meta because, until this point, Meta's had to really rely on other devices made by other companies for consumers to access its services. So it'll be pretty critical moving forward.

SANCHEZ: Lisa Eadicicco, thank you so much for that report.

Now to some of the other headlines we're watching this hour. A federal judge has expanded a temporary order blocking the Trump administration from cutting down any more trees at a D.C. public golf course the president wants to renovate. The judge yesterday saying she was furious with the administration after it removed at least 430 trees over the weekend. The new order halts any future tree cutting through October 26th.

Also, New York City Mayor Zohran Mamdani says he has no plans to remove Jessica Tisch as police commissioner despite calls for her removal from some of the mayor's supporters.

The NYPD has come under fire for its handling of protests that erupted after immigration officers shot and injured a man in the Bronx last week. When asked multiple times about the commissioner's status today, Mamdani noted the city's low crime rate and cooperation between police and his administration.

And Cornell is taking new action as it reviews its response to gang rape allegations on campus. The university says it is suspending all parties and social events at fraternity houses for the remainder of the academic year, warning that any fraternity caught violating the ban will receive an immediate emergency suspension. The announcement comes amid intense scrutiny over how the school handled a 2024 claim from a female student alleging she was gang raped at a Chi Phi fraternity party. The school also announced today it's adding staff to its civil rights office, including a dedicated case manager who will help victims report sexual misconduct.

Tonight in Maine, Republican Senator Susan Collins is set to debate her Democratic opponent, Troy Jackson, for the third time in one week. This race, one of the closest in the nation. Jackson notably is getting help from progressive Senator Bernie Sanders, though he is still facing a tough fight.

Arlette Saenz visited Maine to speak to voters about how they see the race and filed this report.

(BEGIN VIDEOTAPE)

ARLETTE SAENZ, CNN CORRESPONDENT (voice-over): Here in Maine, a Senate race is entering the final stretch, with Democrat Troy Jackson bringing in progressive reinforcements.

BERNIE SANDERS (I), VERMONT: If you want to hold Donald Trump and his disastrous policies accountable, the only way to do that is by electing a Democratic Senate. And this election here in Maine may well determine whether or not that happens.

SAENZ (voice-over): Senator Bernie Sanders is trying to boost turnout among Democratic voters.

UNIDENTIFIED FEMALE: Let's go, Troy.

SAENZ (voice-over): As the power of the progressive movement faces tests in battleground states like Maine and Michigan.

[15:50:00]

SANDERS: We have got to be more than anti-Trump. We've got to be pro working class.

SAENZ (voice-over): Sanders initially was a strong backer of Graham Platner, whose populist message energized the Democratic base. Platner's withdrawal from the race after an allegation of sexual assault, which he denied, forced Democrats to scramble to pick a replacement.

TROY JACKSON, (D) MAINE SENATE NOMINEE: Working people have built this country, and working people ought to have a government that works for them. SAENZ (voice-over): At the Fryeburg Fair, we spoke with Jennifer Messinger, an undecided voter who had supported Platner in the primary.

JENNIFER MESSINGER, UNDECIDED MAINE VOTER: For me, it's trying to weigh both sides, because there's a lot of vitriol right now on both sides.

SAENZ: What do you say to those Democrats who are very enthused about Graham Platner and might be disillusioned about the process right now?

JACKSON: It's about the issues that we care about, the issues that Graham fought for, that I'm fighting for. It was a different messenger, absolutely. But the things that, you know, they were drawn to are still right there in front of us, and we can do it.

SAENZ (voice-over): But the close contest between Jackson and Republican Senator Susan Collins, who is running for a sixth term, could be decided by moderate and independent voters.

SAENZ: What do you think about Bernie Sanders?

GARY SALAMACHA, INDEPENDENT MAINE VOTER: I think he's crazy. So probably not. He definitely wouldn't sway me to Troy Jackson.

SAENZ: Bernie Sanders will obviously rev up the base, but is there any worry that he could potentially alienate moderates and independents who you need to win this campaign?

JACKSON: I honestly, I don't think so. In Bernie's world, he tells you exactly what he's fighting for. I mean, you know, you don't have to play those games or anything like that. And, you know, he's going to do it unlike Senator Collins, who pontificates, goes back and forth. And in the end, leaves you wanting more, big time.

SAENZ (voice-over): For many of the Democratic voters we spoke with, the mission of ousting Collins was their shared goal.

ELLEN BARRY, DEMOCRATIC MAINE VOTER: She really lost me at Kavanaugh. That was the breaking point for me. And I'm really glad I broke when I did because I don't think she deserves the vote.

SAENZ (voice-over): But Collins has proven resilient in the past, winning a tough reelection battle in 2020 by more than eight points, even as Donald Trump lost the state by a similar margin.

SAENZ: How excited are you to vote for Susan Collins?

UNIDENTIFIED MALE: Eighty percent maybe. You know, I just think she's the best of all the picks. She's still the best candidate.

SAENZ: After already debating twice, Senator Susan Collins and Troy Jackson will face off for two additional debates this week.

And Maine is one of those states where Republicans are outspending Democrats on the airwaves. But there is one notable group that is not spending on behalf of Collins, and that is President Donald Trump's super PAC, after the president has expressed some frustrations with Collins votes in the past.

Arlette Saenz, CNN. Portland, Maine.

(END VIDEOTAPE)

SANCHEZ: Thanks to Arlette Saenz.

Ahead, after days of uncertainty, Angel Reese and the Atlanta Dream have a place to play their home games during the WNBA finals. We'll explain why fans were upset about this announcement when we come back.

[15:55:00]

(COMMERCIAL BREAK)

SANCHEZ: The WNBA's Atlanta Dream just avoided a nightmare. The league's finals will tip off on Saturday when the Golden State Valkyries host the Dream in Golden State. When the series heads back to Atlanta though, there were major fears that the Dream would have to play their home games in a very small 3,500 seat arena because of scheduling conflicts.

CNN sports anchor Don Riddell joins us now. Don, the Dream just got some really good news.

DON RIDDELL, CNN SPORTS ANCHOR: Yes, and you're right. It was a nightmare scenario that they were facing. This is a city that has been really starved of sporting success.

And to imagine that a team would have done so well and would have to go to such a small arena, that would have been really quite unthinkable. The Dream have been playing some of their games in State Farm Arena, which is a 17,000 seat arena, which is where the Atlanta Hawks NBA team play. They've been playing some of their games here this season.

And the atmosphere, by all accounts, has been absolutely through the roof. It's been incredible. But because of this scheduling conflict, I guess maybe people didn't quite see far enough ahead and sort of realized that this could be a problem.

Then they had this issue because there was going to be a concert one night. On the other night when they were going to be playing Game 4, the Hawks are going to be playing their NBA season opener. So they've had to make some adjustments.

But here's what they've done. They've basically decided to play Game 3 one day earlier. That's next Wednesday instead of next Thursday.

And then they will still play Game 4 on the 24th on the date that it was scheduled. But they'll bring it forward to an afternoon tip off, so they won't clash with the Hawks later in the evening. And there is a great deal of excitement about this final series. Obviously, we know the interest in the WNBA has been absolutely booming in the last few years. Whoever wins this final series is going to be a first time champion. The Valkyries are actually only in their second year of existence.

So, I mean, they're thrilled to have got this far. The dream of playing in their finals for the first time since 2013. But they've never won this either.

It's going to be Angel Reese against Gabby Williams. It's all set. And now it's going to be played in arenas fit for the occasion.

If this series goes to a sixth game, then they're going to have to figure that out as well. Because currently, that would be in Atlanta with another conflict clash. But hopefully, they'll sort that out if it gets that far.

SANCHEZ: Don, who is the favorite? Golden State or Atlanta? Who are you picking?

What's your prediction?

RIDDELL: I live in Atlanta. So, of course, it's the Dream.

SANCHEZ: It's going to be a sweep, Don Riddell says. I appreciate the update, Don. Thank you so much for that.

RIDDELL: All right.

SANCHEZ: And thank you for sharing your afternoon with CNN. And "THE ARENA" with Kasie Hunt starts right now.

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