Return to Transcripts main page
CNN Newsroom
Texas Senate Approves Controversial Congressional Map; Ghislaine Maxwell, Seeking Pardon, Praises Trump in Interview; Trump Calls for Federal Crime Crackdown in Chicago; SecDef Fires General Who Led Defense Intelligence Agency; Dow Soars to First Record High of the Year; Scholars Push Back on Trump's Smithsonian Attack; Top 25 Showdown in Ireland. Aired 5-6a ET
Aired August 23, 2025 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[05:00:00]
(MUSIC PLAYING)
KIM BRUNHUBER, CNN ANCHOR AND CORRESPONDENT (voice-over): Welcome to all of you watching us around the world. I'm Kim Brunhuber. This is CNN NEWSROOM.
The Texas Senate adopts a Republican-drawn congressional map. We'll look at how California Democrats hope to convince voters to counter the move with their own changes.
Ghislaine Maxwell's interview transcripts are out but there are serious questions about the Justice Department's handling of the Epstein accomplice.
Plus, Wall Street celebrates the news of a potential interest rate cut. We'll break down the significance of the Fed chair's latest comments live from Atlanta.
UNIDENTIFIED MALE (voice-over): Live from Atlanta, this is CNN NEWSROOM with Kim Brunhuber.
BRUNHUBER: Just a few hours ago, the Texas Senate approved a new Republican-drawn congressional map that launched a nationwide battle over redistricting.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There being 18 ayes, 11 nays, House bill 4 is finally passed.
(END VIDEO CLIP)
BRUNHUBER: Governor Greg Abbott is expected to sign the Trump-backed bill in the coming days. It could help Republicans keep control of Congress by securing five more House seats for the party in next year's midterm elections.
Texas Democrats are vowing to fight the new map in court. They're expected to begin filing lawsuits shortly after the governor signs the measure into law.
California Democrats responded to the Texas effort by passing their own new congressional map on Thursday. It still has to be approved by voters during a statewide election in November.
Redrawing congressional districts is typically a once-in-a-decade process but this race will likely expand to other states in the coming weeks.
All right. Joining me now from Los Angeles is Christian Grose, professor of political science at the University of Southern California. He's also a principal at the polling firm Data Viewpoint.
Good to see you again. Thank you so much for being here with us. Really appreciate it. So just to start, this has moved so quickly there in California.
Are you surprised at how we got here?
Have we ever seen anything like this happen before?
CHRISTIAN GROSE, PROFESSOR OF POLITICAL SCIENCE, UNIVERSITY OF SOUTHERN CALIFORNIA: I'm very surprised how we got here. This is really unprecedented in California and very rare in Texas.
What happened is, you know, just a month ago, Texas said they were going to redraw their lines. Donald Trump had been pressuring Texas and a couple other states to try to gain seats in the midterms next year.
California, really surprisingly, because of the process that we use here, is a -- via commission, not by the legislature. Very surprisingly, the legislature and the governor, Governor Newsom, put this on the ballot to go to the voters in November.
So we're going to be voting in November in California for a new map to retaliate to the map that Texas passed just a few hours ago.
BRUNHUBER: Right. So this is obviously a tit-for-tat. So explain to us how what California is doing is different to what Texas is doing in terms of the way it's redrawing the map and who they're trying to pack into which districts.
GROSE: Yes. So in Texas, the goals are to elect more Republicans. It also happens to dilute Black and Latino voters. Especially Black voters are packed into districts in Texas compared to the old map.
In California, they're not changing a lot of the districts that are in the major cities, in the Bay Area along the coast. But the goal in California is to gain five Democratic seats. So there are tweaks that are happening in some parts of Southern California and some parts of Sacramento.
And the northern part of the state, in order to make the flip in California, unlike Texas, there's also a little bit more of a goal to try to protect communities of interest that the initial map did, with achieving the goal of a -- of a switch to Democrats over Republicans.
BRUNHUBER: All right. So obviously, California Republicans are outraged. The two sides don't have a lot of time before voters start casting their ballots.
So in terms of how this is going to play out, what should we expect, you know, in terms of like spending and messaging in the weeks ahead?
GROSE: Yes. Well, there's going to be a lot of spending. The Democrats and Governor Newsom have raised a lot of money. The Republicans are relying on a big donor named Charles Munger Jr., who's been donor to California Republican causes for about 20 years.
The messaging, I think, is going to be really interesting. So this does go to the voters. California is an overwhelmingly Democratic state at the state level.
[05:05:00]
Democrats are going to be arguing and Newsom is already arguing that this ballot measure is a chance to fight Trump and what he's doing in Texas. Republicans are going to be arguing, who are opposed to the ballot measure, they're going to be arguing that this is unfair and that California should not redraw lines in the middle of a decade.
I think those are the messages we're already starting to see. You know, and the supporters, I think are going to succeed if it does become a Democrat versus Republican messaging war. I think the opponents will succeed if they can make this more about changing the way that the lines are redrawn.
BRUNHUBER: In California, Republicans are also framing this as, you know, this is all about Gavin Newsom's presidential ambitions.
I want to wind the lens here and look at this sort of, you know, throughout the country. I mean, Republicans are now apparently targeting other states for gerrymandering.
So if we if we kind of pull back a bit as a political scientist, are we in dangerous territory here in terms of a race to the bottom?
GROSE: This is definitely a race to the bottom. You know, redistricting is supposed to be done every 10 years. It's occasionally done in the middle of a decade if there's a lawsuit that requires a change. That's not what's happening here in either of these states. So it is it is a race to the bottom.
It's a little bit dangerous from a small D democratic standpoint. I will say, I think the retaliatory nature of California's ballot measure, though, is dampening some interest from other states in retaliating and then ramping up other states' willingness to retaliate.
So there are a couple other Republican states, Missouri, Indiana, that are thinking about retaliating; could actually gain one seat in each of those states for Republicans. But also, I think that Newsom is benefiting a lot for his presidential ambitions.
And certainly in California, his approval ratings have shot up quite a bit among Democrats because of this tit-for-tat and the willingness to say, well, Texas started this, California is going to respond. But you know, as a political scientist, it's not -- it's not ideal for voters to be doing the lines in the middle of a decade.
BRUNHUBER: Yes. It'll be fascinating to see how this all plays out, both in your state and elsewhere in the country. We'll definitely check in with you again. Really appreciate your expertise, Christian Grose. Thank you so much.
GROSE: Thank you.
BRUNHUBER: Lyle Menendez was denied parole in California one day after his brother, Eric, lost his bid for release from prison. The brothers were convicted of murdering their parents in 1989. They're separately seeking clemency and a new trial.
The hearings involved details about the abuse they say they endured at the hands of their father. The brothers have long argued they killed their parents out of fear based on the abuse.
Prosecutors say the brothers haven't fully acknowledged their crime. California governor Gavin Newsom has the rare power to reverse parole board decisions.
There are new questions and few reliable answers after the Justice Department released a transcript of its recent interview with Jeffrey Epstein's coconspirator, Ghislaine Maxwell. She's serving a 20-year sentence for helping Epstein groom and sexually abuse underage girls.
But during her meetings with the deputy attorney general, who is Donald Trump's former lawyer, she appeared to be treated as a credible witness.
Maxwell wants a pardon. She praised the U.S. president, saying she never saw him, quote, "in any appropriate -- inappropriate setting."
And listen to her response to this question about Epstein's client list. Here she is.
(BEGIN VIDEO CLIP)
TODD BLANCHE, DEPUTY ATTORNEY GENERAL, DOJ: During the time that you were with Mr. Epstein and even in the 2000s when you were around less frequently, you never observed or you never saw any list or black book or a list of individuals who, you know, linked to certain masseuses or anything like that?
GHISLAINE MAXWELL, JEFFREY EPSTEIN ACCOMPLICE: Absolutely no. There is no list.
(END VIDEO CLIP)
BRUNHUBER: Maxwell repeatedly claimed to have difficulty remembering key details from her relationship with Epstein. Listen to this.
(BEGIN VIDEO CLIP)
MAXWELL: I just don't remember what it's called. I don't remember that. I don't remember him doing either. I want to tell you that I don't remember. I don't remember ever seeing anybody that I would characterize as a child. I don't remember the letter. I don't remember it at all.
(END VIDEO CLIP)
BRUNHUBER: Maxwell also denies claims that underpinned her conviction. She said Epstein didn't pay her millions of dollars to recruit young women for him. She insisted he preferred their company because they were invigorating and up to date on music.
Significantly, Maxwell stated she doesn't believe Epstein died by suicide but she also doesn't think his death was related to blackmail. CNN's Kara Scannell picks up our coverage.
(BEGIN VIDEOTAPE)
KARA SCANNELL, CNN CORRESPONDENT: During the nine-hour interview, Ghislaine Maxwell said she witnessed no inappropriate behavior by any of Jeffrey Epstein's powerful friends, including president Donald Trump and former president Bill Clinton.
Maxwell said she never saw either man receive massages by anyone and she said there is no client list. Maxwell called Trump a gentleman while distancing the president from Epstein.
(BEGIN VIDEO CLIP)
MAXWELL: I think they were friendly like people are in social settings.
I don't -- I don't think they were close friends or I certainly never witnessed the president in any of -- I don't recall ever seeing him in his house, for instance. I actually never saw the president in any type of massage setting.
I never witnessed the president in any inappropriate setting in any way. The president was never inappropriate with anybody. In the times that I was with him, he was a gentleman in all respects.
(END VIDEO CLIP)
SCANNELL: Maxwell said President Clinton was her friend, not Epstein's. And while he traveled on Epstein's plane, she said Clinton never visited any of Epstein's properties, including his private island.
(BEGIN VIDEO CLIP)
MAXWELL: So they spent time on the plane together and I don't believe there was ever a massage on the plane. So that would've been the only time that I think that President Clinton could have even received a massage and he didn't because I was there.
(END VIDEO CLIP)
SCANNELL: During the interview, Maxwell categorically denied any wrongdoing. She admitted she recruited women to massage Epstein but said none of them were underage.
Maxwell was convicted in 2021 of sex trafficking of minors for recruiting, grooming and at times sexually abusing underage girls with Epstein. She is serving a 20-year prison sentence. Maxwell was not promised anything as part of the interview but she is hoping for a pardon -- Kara Scannell, CNN, New York.
(END VIDEOTAPE)
BRUNHUBER: CNN's senior legal analyst Elie Honig has questions about the truth of Maxwell's statements. The former state and federal prosecutor also wondered how many people would actually believe what Maxwell says. Here he is.
(BEGIN VIDEO CLIP)
ELIE HONIG, CNN LEGAL ANALYST: "Is anyone really going to believe Ghislaine Maxwell?" is the number one question I have.
I mean, if you look at this testimony, she's incredibly defensive. She denies that she's ever done anything wrong. The criminal charge against her, which resulted in a trial and a conviction, everything false there, she claims.
Even the civil allegations against her made by many, many victims, people who were children at the time, all of that, she claims, is false. So I don't know how anyone could actually credit that if you do believe that about Ghislaine Maxwell. Fine. We will differ. But I don't know how DOJ could put this out there as some sort of truth- teller telling us the truth. It's really hard to swallow.
I've done countless interviews like this. Todd has done countless interviews like this. I know that I know how to do it and I know that Todd knows how to do it.
And this is not it. What he does in this interview over and over again -- and it's sort of hurried -- is he'll throw a name at Ghislaine Maxwell, say, do you know such and such, a lot of high profile names?
Maxwell will say, yes, I knew him myself or I knew him through Epstein.
And then Blanche will say, what was the nature of this persons relationship with Epstein?
And Maxwell will say something like, well, they were social friends or they partied together. I saw them at this event or that.
And then sometimes Blanche will say, do you know of that person ever doing anything wrong? And Maxwell will say, no, I don't.
And that's it. I mean, that is not how you dig into information. That's how you breeze past stuff and get it done as quick as possible.
(END VIDEO CLIP)
BRUNHUBER: And Honig later said he believes the aim of Maxwell's interview may have been to, quote, "exonerate Donald Trump" amid the ongoing controversy over Epstein. And he made it clear this was his own opinion.
FBI agents spent hours searching the home and office of president Trump's former national security advisor, John Bolton. Sources tell CNN this is part of a renewed investigation into whether Bolton shared classified information in his 2020 book.
Bolton, of course, became an intense critic of president Trump after he was fired in September of 2019. The president says he didn't know about Friday's FBI search and called himself the, quote, "chief law enforcement officer," a title usually reserved for the attorney general. Here is.
(BEGIN VIDEO CLIP)
TRUMP: I saw that just like everybody else. I try and stay out of that stuff. I'm allowed to be. And I'm chief law enforcement officer, believe it or not. You know, I don't like to go around saying that but I am. That's the position. But I purposely don't want to really get involved in it. I'm not a fan of John Bolton. I thought he was a sleazebag actually.
(END VIDEO CLIP)
BRUNHUBER: President Trump has threatened to jail Bolton over his book.
In it he writes, quote, "Trump is unfit to be president. If his first four years were bad, a second four will be worse."
The Justice Department investigated Bolton during president Trump's first term but the case was dropped by the Biden administration.
President Trump is naming some of the cities he plans to target in his federal crackdown on crime. After deploying the National Guard in D.C., he told reporters on Friday, Chicago is next.
(BEGIN VIDEO CLIP)
TRUMP: The people in Chicago, Mr. Vice President, are screaming for us to come. And so I think Chicago will be our next. And then we'll help with New York.
Now you look at what the Democrats have done to San Francisco. They've destroyed it. We can clean that up, too. We'll clean that one up, too.
We've already had calls from other cities.
[05:15:00]
Quiet calls, calls from Democrats. We'd love you to come here because they've lost control of their cities. I'm not going to say it because I don't want them to lose their elections.
(END VIDEO CLIP)
BRUNHUBER: Chicago mayor Brandon Johnson says there are many things the government could do to help the city deal with crime. But he says sending in the military isn't one of them.
Meanwhile, the U.S. Defense Secretary has told National Guard members patrolling the streets of D.C. to begin carrying their weapons. It's a notable shift by the Pentagon, which had suggested that troops could be armed only if it becomes necessary.
President Trump said Friday he could keep the National Guard in the city as long as he wants by declaring a national emergency.
Kilmar Abrego Garcia, the Maryland resident wrongfully deported to El Salvador, has been released from criminal custody ahead of his trial. He was arrested on human smuggling charges after being returned to the United States in June.
Abrego Garcia has now held an emotional reunion with his family at an undisclosed location. This is the first time he's been imprisoned -- not been imprisoned since the Trump administration deported him in March. But his attorneys say he's far from safe. U.S. officials could deport him again.
All right. Still ahead, the lives of more than 100,000 children in Gaza are at risk from hunger. A U.N.-backed group has officially declared parts of the enclave are experiencing a manmade famine right now. We'll have details in a live report next.
Plus, Russia celebrates an important day from its past but the event is all about supporting its battle in Ukraine. Now those stories and more coming up. Please stay with us.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
[05:20:00]
(MUSIC PLAYING)
Palestinian first responders say a series of Israeli strikes killed at least 18 people sheltering at a school in Gaza City on Friday. Emergency services tell CNN the site was hit by artillery fire. The schoolyard was packed with the tents of displaced people. Many were women and children.
The Israeli military told CNN it wasn't aware of any incident threat there at the time of the strikes. The strikes came on the same day a U.N.-backed monitoring group officially declared parts of Gaza, including Gaza City, are experiencing manmade famine.
The report warns that the crisis is expected to worsen and spread in the coming weeks and months. The Israeli government is rejecting the reports findings, calling it biased and one-sided. Want to go live now to London and CNN's Nada Bashir.
So walk us through the reports findings and the reaction.
NADA BASHIR, CNN CORRESPONDENT: Well, Kim, the report confirms what humanitarian organizations, including U.N. agencies, have been warning about over the last 22 months.
That the limits and restrictions on the amount of aid being allowed into the Gaza Strip has led to what they've now confirmed to be a manmade famine in parts of Gaza.
We've been hearing the warnings around a starvation crisis. We've been hearing the reports of increased rates of malnutrition amongst Palestinian civilians in the Gaza Strip, including in children, for some time now.
And these alarm bells have been sounded by numerous humanitarian organizations, including those operating on the ground. They've been sounded by health authorities on the ground in Gaza.
And we ourselves have seen those harrowing images of emaciated Palestinian civilians, including children, inside the Gaza Strip. And there have been continued calls for more aid to be allowed in, particularly food aid.
And what we've seen over the last 22 months is instances of total blockades being put on humanitarian aid being allowed into the Gaza Strip. That blockade has since been lifted.
And we are seeing aid getting in primarily through the Gaza Humanitarian Foundation mechanism, which has drawn a huge amount of criticism for the risks that have come with that. We've seen civilians being killed, fired at many of these distribution points, according to officials on the ground.
And, of course, what we've also seen is clearly not enough aid getting in. That is the key point here, that the restrictions have meant that only a trickle of aid is really getting in, in comparison to what is needed.
Now as you mentioned, the Israeli authorities have rejected this report. They've described it as one sided, as biased. They have accused the U.N.-backed initiative of relying heavily on data they believe was provided by Hamas, rather than official data.
They've also accused the initiative of failing to take into account a recent uptick in the amount of food, water and medical supplies being allowed into the Gaza Strip. But what we've been hearing from U.N. officials, including the U.N.'s own secretary general, Antonio Guterres, just yesterday, is that this is a manmade famine.
It is something that would have been avoidable, Antonio Guterres went on to say -- I'll just read you a bit from his statement yesterday, that Israel, in his words, "as the occupying power has unequivocal obligations under international law, including the duty of ensuring food and medical supplies for the population of Gaza."
And, of course, we also heard from the U.N.'s humanitarian chief, Tom Fletcher, who implored people to read this report cover to cover, not as numbers, not as figures but as names and lives.
And that is really the underscoring line here, that many of these humanitarians have been trying to push, is that we are seeing this humanitarian situation worsening. These are people's lives.
And, of course, this all comes as we see the Israeli military preparing to double down on its military offensive in Gaza City, where, of course, this is where the U.N. has said there is now famine warning. As you mentioned, Kim, that we could continue to see this situation of famine spreading across other parts of Gaza.
BRUNHUBER: Yes, those pictures of starving children that you mentioned now are absolutely heartbreaking. Appreciate that. Nada Bashir in London. Thank you so much.
U.S. Defense Secretary Pete Hegseth has fired a top general, who oversaw the initial assessment of the damage to Iranian nuclear sites from U.S. strikes. Multiple sources tell CNN Lieutenant General Jeffrey Kruse will no longer serve as the head of U.S. Defense Intelligence Agency.
The agency's assessment found that Iran's nuclear program was set back only a few months by the U.S. strikes. That angered president Trump, who said the targets were obliterated.
[05:25:03]
The firing is the latest upheaval in military leadership in the country's intelligence agencies under the Trump administration.
Just earlier this week, the Pentagon announced the Air Force's top uniformed officer will retire two years early and the office of the Director of National Intelligence, which oversees 18 agencies, announced that it will slash its budget and staff.
President Trump is postponing his deadline for Vladimir Putin again. Trump now says he'll give the Russian leader a couple more weeks to make it clear if he'll meet with his Ukrainian counterpart, Vladimir Zelenskyy, or possibly face consequences.
Russia's foreign minister repeated on Friday that there are no plans for a Putin-Zelenskyy meeting, contradicting a recent White House statement, that plans are underway.
In Kyiv, Zelenskyy says Ukraine's future security guarantees from the West must be similar to NATO's Article V. That says that one attack on one alliance member is an attack on all. Zelenskyy spoke as he met NATO secretary general Mark Rutte on Friday.
Moscow is putting on a nationwide show of patriotism as the fighting in Ukraine grinds on. Russia celebrated its flag day on Friday, a holiday marking the restoration of its traditional white, blue and red banner. As Fred Pleitgen reports, many events were centered on what's happening in Ukraine.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Russia continues to bring out the patriotism, for instance, on Russian flag day, where, as the name says, Russians celebrate their flag.
But they also have festivals like this one, which is all about patriotism. What you see behind me is a stand from the so-called Narodny Front, which means the People's Front, an organization founded by Vladimir Putin.
And right now, those folks there are making trench candles, which they say are very important for participants of what Russia calls its "special military operation" in Ukraine.
UNIDENTIFIED MALE (through translator): We are the very youth who promote these values that our country so needs to defend. The volunteers' job is to make trench candles. That is a whole tin can with cardboard folded in it. It's filled with paraffin. These candles will be sent directly to the special military operation zone.
PLEITGEN: Now, of course, in all of this, there's always a military aspect to it. You can see their stands here, for instance, where people can learn how to take apart guns, how to generally deal with weapons.
All of this to show also what's going on the front lines but also because, of course, the Russians are trying to create that feeling of defending the country to their people.
There's actually a lot of people who came here and a lot of people who are also volunteering, actually, of all ages. And if we look over in the other direction, we can see people who are making camouflage nets for the front lines. Those, of course, right now, very important.
Especially as drones are being used by both sides, which, of course, are a threat to soldiers on the front lines. You see a lot of folks there who are making nets but also some who are actually knitting socks for soldiers, to keep warm in the cold months.
(END VIDEOTAPE)
BRUNHUBER: Controversy over the Jeffrey Epstein files refused to die down. Look at how the White House gamed possible responses and how Ghislaine Maxwell's interview fits into the plan. That's coming up after the break.
Plus, U.S. stocks and bonds are looking up. Investors showed renewed optimism after a speech by the Federal Reserve chairman. We'll look at what he had to say when we come back. Please stay with us.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
[05:30:00]
(MUSIC PLAYING)
BRUNHUBER (voice-over): Welcome back to CNN NEWSROOM. I'm Kim Brunhuber. Let's check some of today's top stories.
A Texas bill to redraw the state's congressional map is heading to the governor's desk. The Texas Senate approved the bill just a few hours ago. It's an effort to help Republicans keep control of Congress next year. Democratic lawmakers in the state are vowing to fight the new map in court.
One day after his brother's parole was denied, Lyle Menendez was also denied a release from prison. The brothers say they killed their parents in 1989 out of fear centered around abuse. Prosecutors say they haven't fully acknowledged their crime.
The U.S. Justice Department has released the transcript of a recent interview with Ghislaine Maxwell. She's serving a 20-year sentence for helping Jeffrey Epstein groom and sexually abuse underage girls.
Maxwell praised president Donald Trump and insists she never saw him behave inappropriately, quote, "in any context."
But controversy over handling of the Epstein files has haunted the Trump administration for weeks now. And the White House has been looking for a way to get ahead of the story. Sources tell CNN that releasing Maxwell's Justice Department interview was part of that effort. The decision was made earlier this month. Our Kristen Holmes has more.
(BEGIN VIDEOTAPE)
KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: The Justice Department released the transcripts between Todd Blanche, the deputy attorney general, and Ghislaine Maxwell, Jeffrey Epstein's accomplice, on Friday.
And there are still a lot of questions as to why exactly they chose Friday. So we've been talking to White House officials, who were really debating this for several weeks now, whether or not they were going to release this audio and these transcripts.
One thing to note is the fact that there was audio of this interview, that it even existed. That in itself was unprecedented. Usually these kinds of interviews do not have audio with them.
But the idea to release them came around the time that the Trump administration, the White House in particular, was tired of being on the defensive about the Epstein files, the so-called Epstein files, the Epstein case, the botched rollout from the Department of Justice.
And they had spent a lot of time playing defense and they wanted to take control of the narrative. One of the ways they thought they could do that would be by -- be by releasing these transcripts -- to show this interview between Blanche and Maxwell.
But as time went on, they started to feel that it might be a mistake to reinsert the Epstein story back into the narrative because, according to them, they had started to see it die down.
In fact, I spoke to some White House officials who said, at one point, a CNN clip of them that discussed how the searches for the Epstein case were down was being circulated among White House staffers as part of the reasoning that maybe they shouldn't bring this story back into the limelight.
But today, today was a day that Epstein was already going to be in the news, because today was the day that the Justice Department was going to turn over the files to the House Oversight Committee.
So this is the day that they chose to release this, weeks after they started debating it, even weeks before that was the actual interview. So there's obviously still a lot of questions about what was said inside of that meeting there.
We've gone through a lot of it but the question is whether or not it will do what the White House is hoping. To some extent it does, which is quiet the base, quiet the critics.
[05:35:00]
Because president Trump has been under siege, not just from Democrats but from Republicans and from some of his biggest supporters over the Epstein files.
They say the White House hasn't been transparent. So whether or not this will actually help that cause remains to be seen; something, of course, we're keeping a close eye on -- Kristen Holmes, CNN, Washington.
(END VIDEOTAPE)
BRUNHUBER: Areva Martin is an attorney and legal affairs commentator and she says the condition of Maxwell's imprisonment eased after the interview. And here she points out some issues she had with the deputy attorney general's questions.
(BEGIN VIDEO CLIP)
AREVA MARTIN, ATTORNEY AND LEGAL AFFAIRS COMMENTATOR: You had Todd Blanche, who was a former personal attorney for Donald Trump, doing this interview. You didn't have those career prosecutors that were involved in the prosecution of Maxwell in this nine-hour interview.
There were times when Todd Blanche did not use aggressive follow-up questions when interviewing Maxwell. And even though it stated that there were no promises made, she was moved to a minimum security prison right after this interview, a prison that typically does not house individuals like herself who've been convicted of sex crimes.
So I think it's disingenuous to say there were no promises made. And clearly she wanted to be on the record of praising Donald Trump and making sure that he was clearly separated from any wrongdoing on the part of Epstein.
And let's be clear, she has an appeal that is pending. So her ability to be free or to have her conviction overturned is still in the balance. So she was not going to say anything that implicated herself and clearly not Donald Trump, as she is seeking a pardon from him.
So in some ways, this was just a performative act on the part of the Department of Justice, I would say, to distract U.S. citizens, Americans, from real issues that Donald Trump is facing as president.
(END VIDEO CLIP)
BRUNHUBER: Five people have been killed and dozens injured in a tour bus crash in New York state. The bus was heading back to New York City from Niagara Falls. At least 30 people were taken to hospital for treatment.
Police say some people were thrown from the vehicle. Most of the passengers were from India, China and the Philippines. The Chinese consulate general says one of its nationals was seriously injured and was undergoing surgery.
U.S. markets were up significantly at the close on Friday, with the Dow soaring by more than 800 points to a record high. The other major indices also fared well, with the S&P 500 snapping a five-day losing streak. Investors were encouraged by the prospect of an interest rate cut by the Federal Reserve.
Fed chairman Jerome Powell signaled the possibility of a softened stance on rate cuts at his annual speech in Jackson Hole, Wyoming. Wall Street had seemed cautious about what Powell would say but optimism rose rapidly after his speech.
(BEGIN VIDEO CLIP)
JEROME POWELL, CHAIRMAN, FEDERAL RESERVE: The effects of tariffs on consumer prices are now clearly visible. Risks to inflation are tilted to the upside and risks to employment to the downside. The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.
(END VIDEO CLIP)
(BEGIN VIDEOTAPE)
BRUNHUBER: All right. For more on this, I'm joined live by Ryan Patel, senior fellow of the Drucker School of Management at Claremont Graduate University. Great to see you again. Thanks so much for joining us. So it looks
like the markets loved what Jerome Powell had to say but he didn't actually promise to cut the rates, as we heard there, you know.
So what exactly did investors hear that got them so excited?
RYAN PATEL, GLOBAL BUSINESS EXECUTIVE: Yes, he signaled a shift. Now he didn't commit to it; he had softened language. So he hadn't done that before. And I think kind of he's not saying he's feeling the pressure.
But the, you know, the upcoming inflation and jobs data that's upcoming, Kim, is what he's kind of laying out. And so the markets then went and ran with this and said, well, 25 basis points.
Let me tell you what they're saying, 25 basis points in September. And then more to come.
But Jerome Powell didn't necessarily say that. It's "maybe there's a cut" and maybe we'll wait and see and then we'll see. And I think that's kind of where the Wall Street's at right now. And they took that as a good news because Jerome Powell hasn't really said very much in the last couple of months on what the outlook will be.
BRUNHUBER: Yes, that's right. As our reporter said, I mean, nothing is set in stone. Powell seemed to be walking a tightrope here, acknowledging the job market's getting shaky while also worrying about the Trump's tariffs pushing inflation back up.
So how does the Fed navigate when these two big concerns are kind of pulling in opposite directions, as I see it?
PATEL: Yes. I mean, if you think of the Fed, you know, I think this is where we get lost a little bit in translation, when people are saying the risk isn't about rates moving up or down.
[05:40:00]
It's really the credibility of the Fed being independent, right?
It has a global, you know, impact to all these things. And so I think when you think of central banking and monetary policy, you know, Powell can't miss here and has to really give a clear -- a clear answer on what they're going to do, should they cut the rates in September.
And -- but you still see the data is all over the place for him, for them. And so I don't know, I feel like if they're going to cut the in September 25th basis points, they should be really sure that they're going to have another cut really soon.
BRUNHUBER: You mentioned a key word there, independence. So I want to drill down on that a bit more, because we're hearing Trump's team is already interviewing potential replacements for Powell, including James Bullard.
But Bullard says he'll only take the job if the Fed can stay independent from political pressure.
I mean, is that even realistic, given everything that the president has said, including wanting to have more say in Fed decisions, even threatening to fire the man he nominated himself?
PATEL: Yes, you know, but you've seen the pattern right from the administration, right?
They're going to -- they're going to find -- to put their person in. And, you know, you still need the independence. The administration knows that this can't, I mean, well, overall, it can't be driven from the president unfortunately.
And I think you've got to have the right person that the administration likes, because, Kim, what happens is, if it's -- if it's not independent, it has this -- you know, we're intertwined to Europe, to Japan, to, you know, not only to the rest of the world when it comes to central bankers, it has a big impact on ripple effect.
BRUNHUBER: Yes, absolutely. And if that credibility is undermined, I mean, it has huge financial consequences around the world, right?
PATEL: Yes. And, you know, we're going to see, you know, you're going to see that the central bankers come out later today, talking about what, you know, what's going to be interesting to see what the E.U. does, you know and what Japan does.
You know, there are all different types of markets in the U.K. And so to me that will be interesting to see how they react to the U.S., Jerome Powell statements.
BRUNHUBER: Yes. And you mentioned that. I mean we'll hear specifically from the heads of Europe's central banks plus Japan. I mean, lots of issues on their plates. Europe's still battling inflation. Japan's trying to move away from years of deflation.
So what will you be listening for when they speak later today?
PATEL: I mean, for me, like you mentioned, Europe's still fighting inflation.
U.K. is balancing the growth risk. And Japan, you know, is its own thing. So I feel like we have to take all three of those.
I think Japan may, you know, diverse -- go away from what the Fed is easing where Japan tightens.
Do you see the Bank of England?
I think they will apply, align more with the cautious flexibility. With Jerome Powell and then you think about Europe's inflation challenge, as you mentioned, it has been more stubborn than the U.S.
So I feel like they're going to emphasize more policy discipline. And the word independence, which I think that they will talk about. And so, to me, that's the road plan. If they go anywhere away from that, I think it then asks the
credibility of the U.S., is -- are they -- is the U.S. the leader in -- when it comes to these things?
And so to me, that's what I watch for.
BRUNHUBER: Yes, that's the question. We will be watching. Great to check in with you again, my friend. Really appreciate it. Ryan Patel, thanks so much.
PATEL: Appreciate you. Kim.
(END VIDEOTAPE)
BRUNHUBER: President Trump is threatening higher tariffs, this time on furniture products.
He's directing his administration to investigate furniture being imported into the U.S. Furniture prices have already been on the rise after Trump hit China and Vietnam with high tariffs. Those countries are the top two sources of imported furniture.
Following Trump's announcement, stocks in furniture retailers like Wayfair and Williams-Sonoma tanked in after-hours trading.
The United States government now owns a 10 percent stake in struggling chipmaker, Intel. The U.S. is spending $8.9 billion for the stock. President Trump says Intel's CEO agreed to the deal.
The White House says this is part of the effort to increase semiconductor production within the U.S. This is one of the largest government investments in a company since the 2008 financial crisis.
President Trump says the Smithsonian museums are too woke but scholars are fighting back, saying the institutions are dedicated to truth. A look at the clash over history when we come back. Please stay with us.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
[05:45:00]
(MUSIC PLAYING)
BRUNHUBER: Donald Trump is escalating his attacks against America's renowned Smithsonian museums, even alleging they focused too much on how bad slavery was. Historians are pushing back, accusing the president of rewriting history.
CNN's Leigh Waldman has more.
(BEGIN VIDEOTAPE)
CORNELL WILLIAM BROOKS, PROFESSOR, HARVARD KENNEDY SCHOOL: The Smithsonian is charged with simply telling the truth about American history.
LEIGH WALDMAN, CNN CORRESPONDENT (voice-over): Historians and researchers are concerned about president Donald Trump's push to purge museums of information the White House describes as woke.
In a post on Truth Social, Trump wrote, "The Smithsonian is out of control, where everything discussed is how horrible our country is, how bad slavery was. Continuing with nothing about success, nothing about brightness, nothing about the future."
BROOKS: Millions of Americans visit the Smithsonian every year and we don't need the micromanagement and with macroincompetence from the White House.
WALDMAN (voice-over): This latest push comes after the White House ordered a sweeping review of the Smithsonian museums and exhibits and months after an executive order was signed by Trump, aimed at restoring truth and sanity to American history.
The executive order states, "Museums in our nation's capital should be places where individuals go to learn, not to be subjected to ideological indoctrination or divisive narratives."
LEAH WRIGHT RIGUEUR, ASSOCIATE PROFESSOR OF HISTORY, JOHNS HOPKINS UNIVERSITY: We also see a story of resilience, of transformation and of democracy. Right?
The promise of democracy and democracy realized. And I think that's the part that the president really just misses.
WALDMAN (voice-over): Both experts feel concerned about the potential to eliminate certain aspects of American history from museums.
RIGUEUR: The president is choosing to ignore in favor of this really reductive and harmful version of history that he wants to implement.
BROOKS: We don't need the president or anyone else literally assaulting our culture, assaulting our history.
WALDMAN (voice-over): In New York, I'm Leigh Waldman.
(END VIDEOTAPE)
BRUNHUBER: The new college football season kicks off today in the season's first game as a Top 25 matchup happening in Ireland. We'll get more from Dublin after the break. Please stay with us.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
[05:50:00]
(MUSIC PLAYING)
BRUNHUBER: The college football season kicks off about six hours from now in Ireland. Top 25 teams Iowa State and Kansas State are playing in Dublin. Virgin Media's Will Dalton has more on the game and the fans.
(BEGIN VIDEOTAPE)
WILL DALTON, VIRGIN MEDIA CORRESPONDENT (voice-over): Touching down in Dublin, two of America's biggest college teams arrived in the capital ahead of Saturday's season opener. Kansas State and Iowa State will go head to head in front of a huge crowd at the Aviva stadium.
UNIDENTIFIED MALE: Just a great opportunity for our football program and obviously our university and chance to put the two great football programs on the world stage. So we're really excited about it.
DALTON (voice-over): Over 100 players from each side has traveled. Added to that number are the coaches, physios, cheerleaders and even the college band. It's also drawn the fans with airlines expecting to welcome around 24,000 visitors to Dublin.
DALTON: Going to guess with the T-shirts, you're in town for the game?
UNIDENTIFIED FEMALE: Absolutely, yes.
DALTON: Tell me, why have you come all this way to support your team?
UNIDENTIFIED FEMALE: Well, my son is a freshman on the Iowa State football team.
DALTON: Is this your first time in Ireland?
UNIDENTIFIED FEMALE: It is.
DALTON: And what are you expecting?
UNIDENTIFIED FEMALE: A beautiful city and great football.
UNIDENTIFIED MALE: College football is a big deal. And you got your favorite team. You follow them wherever they go. And, of course, when they come to Dublin, we wanted to be here, too. It's a beautiful country. We're -- I'm glad to be back. And you guys are going to love it.
UNIDENTIFIED FEMALE: Yes.
DALTON (voice-over): The event, with its party atmosphere, is also expected to hand the economy a boost in the region of 130 million euros. And those organizing the event are already looking to the future.
SUSANNE CARBERRY, CHIEF CUSTOMER OFFICER, AER LINGUS: I mean, to bring 24,000 consumers right into Dublin, into the heart of it, to take it all in, is absolutely fantastic.
[05:55:00]
This has got immense economic value to Ireland. So it's fantastic for us to be able to play our part.
JOHN ANTHONY, COFOUNDER, AER LINGUS COLLEGE FOOTBALL CLASSIC: We have very high profile programs that are interested, that reach out to me and talk about future years.
So with the wonderful support of Aer Lingus and the Irish government agencies that help us and all the other partners across Ireland, this is -- our intent is we're going to kick off the college football season every year with big matchups here in Dublin.
DALTON (voice-over): Well, this game is aptly known as Farmageddon due to the huge rivalry between these two farming states -- Will Dalton at Dublin Airport for Virgin Media Sport.
(END VIDEOTAPE)
BRUNHUBER: NASA is preparing for its second Mars simulation mission in October. A four-person crew will spend a year inside a 3D printed habitat in Houston, Texas. The structure can't mimic the Martian gravity but the team will try to reproduce the same kind of exercises in daily life as a future Mars crew.
They'll be isolated from loved ones and make do with limited resources. They'll even deal with a 45-minute communications delay, talking with the outside world, just like on the Red Planet.
The mission brings NASA a step closer to its goal of sending a crew to Mars in the 2030s.
BRUNHUBER: A stray cat has become the newest member of a remote Chilean police force. Have a look.
(BEGIN VIDEO CLIP)
BRUNHUBER (voice-over): Officers say they first noticed the kitten being chased by a pack of dogs. Scared and cold, the kitty was brought into the station and, since then, he's been embraced as a mascot, even earning his own police vest.
Officers say he's now an invaluable member of their team, providing calm and comfort to victims of crime and visitors to the station.
(END VIDEO CLIP)
BRUNHUBER: Well, that wraps this hour of CNN NEWSROOM. I'm Kim Brunhuber. For our viewers in North America, "CNN THIS MORNING" is next. For the rest of the world, it's "AFRICAN VOICES: CHANGEMAKERS."
