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The Situation Room

Annual Inflation Cooled to 2.4 Percent in January; Tech Researchers Sound Alarm About A.I.; Behind the Texas Airspace Closure; Controversy in Olympic Ice Dance as French Duo Beat U.S. Team. Aired 10:30-11a ET

Aired February 13, 2026 - 10:30   ET

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

[10:30:00]

PAMELA BROWN, CNN ANCHOR: You read these latest inflation numbers and what they tell you about the broader economy right now.

GINA RAIMONDO, FORMER COMMERCE SECRETARY UNDER PRESIDENT BIDEN AND (D) FORMER RHODE ISLAND GOVERNOR: Yes, Well, thank you for having me, first of all. I agree with you. I mean, certainly any sign that prices are coming down for consumers is a good sign. You know, people have been feeling it for a long time.

That being said, you know, it's still not where we want it to be. And if you look at food prices and the cost of utilities, energy, electricity, the cost of the grocery store, it's still higher than it was a year ago. So, any relief in inflation is welcome news for the American consumer, but it's still tough and people feel it every day when they're doing their daily purchases.

BROWN: Help us better understand that dynamic where you have President Trump's when he first implemented them, everyone said this is just going to cause inflation to skyrocket. There are areas where prices are higher, like you point out the grocery store, but yet you see this cooling. Help us understand why that is.

RAIMONDO: Well, certainly the tariffs have been inflationary. I mean, study after study shows that 90 plus percent of the increased tariffs are being passed on to the consumer. And that just makes sense. If the tariff gets increased, companies pass it on to the consumer.

That being said, as you point out, the CPI is a basket of goods. So, some things are higher, some things are lower. The Fed targets two percent. We're still not at 2 percent. If you're a mom and dad and buying groceries for the family, it's still higher than it was a year ago. If you're heating your home and this has been a very cold winter, it's still higher than it was.

So, I think we're just not where we need to be. And there's no disputing that tariffs get passed on to the consumer and make those goods more expensive.

BROWN: It is true that 90 percent of the import taxes were paid for by U.S. businesses. But are you surprised, given all the tariffs, that inflation isn't higher right now, given all those predictions early on?

RAIMONDO: I'm not surprised. I think companies are still holding back price increases. A number of companies are still waiting as long as they can so they don't have to raise prices. A lot of companies bought as much inventory as they could in anticipation of the tariffs, and they're still burning through that inventory. So, I'm not totally surprised.

And, you know, you asked me about the economy. It's a mixed bag, right? I mean, it's a good thing. Like I said, we have had a good month with inflation. But it's a mixed bag with the economy. You know, a healthy economy is an economy where the average person feels comfortable to leave their job because they can get another job. That isn't what Americans are feeling right now. The average American is stretched. They are feeling job insecure. They're worried about A.I. They're worried about their job. And groceries, energy, electricity, health care are more expensive than it used to be. So, it's a mixed bag and it's a challenge, and Americans are feeling it.

BROWN: So, just to follow up on that, it is true that, you know, we've spoken to the everyday American who just is struggling. They're not happy about prices at the grocery store. There are health insurance premiums going up. Since the 2024 presidential election, many Democrats have acknowledged that the Biden-Harris administration could have done a better job of acknowledging some of the economic struggles of average Americans, even when the numbers indicated things were OK. You know, it wasn't the lived experience for many Americans. What do you think of the messaging so far from this administration?

RAIMONDO: You know, I was the governor of Rhode Island, and I always think, I still think governors, mayors are the closest to the people. And one thing I learned is that it doesn't even matter necessarily what all the statistics say. You cannot convince people that what you're saying is different from their lived experience.

So, anyone who gets out there and trumpets, oh, inflation is down, it's it doesn't you know, people don't buy it because every month when they pay their bills or every day when they go to the grocery store or they want to buy their kids a dessert or a treat or pay for, you know, lunch, it's expensive and it and they're insecure.

So, you know, I just -- I think Americans are smart people. And when politicians of any kind try to convince them of something that's different from what they live every day, it doesn't wash.

[10:35:00]

BROWN: You had mentioned earlier A.I. and the concerns of the everyday American about how it could impact them. I want to play for you what tech CEO Matt Shumer told my colleague Jake Tapper.

(BEGIN VIDEO CLIP)

MATT SHUMER, CEO AND CO-FOUNDER, OTHERSIDEAI: What I saw was pretty -- it was a wake-up moment for myself. I've seen these models get better and better every year. The A.I. models are getting better at code first. That's not going to kind of proliferate through the economy immediately just because it's able to do it just because the capability is there, it doesn't mean it's going to happen and take jobs overnight. I'm just warning about the capabilities getting there.

(END VIDEO CLIP)

BROWN: So, he's really sounding the alarm that that A.I. is just rapidly developing in a way that maybe we're not paying close enough attention to. What do you make of that assessment?

RAIMONDO: I agree with it. Now, I don't think the solution is necessarily to slow down A.I. innovation. You know we're in a global competition for A.I. innovation. I think there's a lot of exciting things A.I. will bring more medicines. People will be healthier be easier to teach people. But we aren't ready for it. We aren't ready for it. And that worries me.

We have to improve upon our education system our training system. We have to provide a cushion for the American people more than just unemployment insurance. We have to we have to let employers know it isn't acceptable. Like we cannot just have mass layoffs across the country all at once. So, I think it is time. It is a wake-up call.

I believe America can do anything we put our mind to. So, let's put our mind to this. Let's both leave the world in A.I. innovation and make sure we bring every American along. And that means innovation, right? I mean we haven't innovated higher ed in the U.S. in a long time. Unemployment insurance was created almost 100 years ago by FDR. We have to do better to make sure the average American knows we've got your back and we're going to bring everybody along.

BROWN: All right. Gina Raimondo, thank you so much for coming on to offer your perspective. I know you're very busy there at the Munich Security Conference. Thanks so much.

RAIMONDO: Thank you.

BROWN: And just ahead the blame game over the El Paso airspace closure. The finger pointing within the Trump administration as we learn more about the Defense Department's rush to use laser weapons.

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[10:40:00]

BROWN: New this morning, the abrupt closure of El Paso's airspace this week has sparked finger pointing across the Trump administration, according to our reporting. It comes as the Defense Department aggressively pursues laser weapons and defense systems. The use of an anti-drone laser system was what led to the temporary shutdown. And sources tell CNN the White House is placing the blame on the Federal Aviation Administration, while others in the administration are saying it's the Department of Homeland Security and the Pentagon's fault for using new technology in civilian airspace without alerting the FAA.

Joining us now to further discuss is Pete Muntean. All right. So, what more can you tell us based on your reporting, Pete?

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Well, Pam, all of our reporting underscores a breakdown in communication between the federal agencies involved here. What's clear from key government officials that they tell us this is the FAA's decision to halt flights over El Paso really caught some parts of the Trump administration so off guard. And now, there's this intense blame game unfolding inside the White House. Remember, this all centers on a counter drone system in use near the border.

The technology uses a high energy laser, and this is Pentagon video of a similar system, that laser uses concentrated heat to disable drones. And sources tell me FAA officials were concerned about the system's use at Fort Bliss and its potential to harm civilian flights at nearby El Paso International Airport. Two senior administration officials tell CNN that the White House was furious with the FAA for shutting down the airspace.

One top official tells us FAA Administrator Bryan Bedford decided to close the airspace without alerting the White House, Pentagon, or Homeland Security officials. But other parts of the administration are really pointing fingers in the opposite direction, now questioning why this technology was being used without fully coordinating with the FAA.

There's also disagreement over who knew what and when. One source disputes that the White House was kept in the dark, saying that senior National Security Council and Homeland Security Council staff were told in advance that a temporary flight restriction was coming. Bottom line here, Pam, this has sparked a major tension inside the Trump administration about who's responsible for this mess. None of the agencies involved here have responded to our official request for comment.

Also, you have to set this against the backdrop of a strained relationship since last year's deadly midair collision over the Potomac River involving a commercial flight in an Army helicopter. Just yesterday, NTSB Chair Jennifer Homendy told a Senate committee that the lack of coordination between the military and the FAA in that case had been astounding. Pam.

BROWN: Wow. That's scary. All right. Pete Muntean, thanks for bringing us the latest, as always. And coming up here in the Situation Room, Olympic ice dancing upset, growing calls for an investigation into the scoring that had the favored American pair end up with silver.

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[10:45:00]

BROWN: Well, it is day seven at the Milan Cortina Winter Olympics. The United States is currently trailing behind Italy and Norway in gold medals. All eyes are on the U.S. figure skater, also known as the Quad God, as he goes for gold in the men's individual competition. And this comes as controversy grows over an upset on the ice this week. U.S. husband and wife duo Madison Chock and Evan Bates took home silver, despite skating a near perfect routine, while the French team surprised the world and won gold.

Let's go live now to CNN's Coy Wire, who is in Italy for the games. Walk us through all of this figure skating drama, Coy.

COY WIRE, CNN SPORTS ANCHOR: Yes, good to see you, Pamela. The French team, let's start with that, winning gold over the three-time defending world champs, Americans Madison Chock and Evan Bates. They put up a season-best performance, but they lost by fewer than one and a half points.

[10:50:00]

Now, in gold over the three-time defending world champs, Americans Madison Chock and Evan Bates, they put up a season-best performance, but they lost by fewer than one and a half points. Now, five of the nine judges favored the Americans. Three of the judges who gave the top marks to the French did so by a slim margin, but one judge, a French judge, favored the French skaters by nearly eight points in the free dance, hence the controversy.

Both teams actually had the same coach, Pamela, and they said that they thought Chock and Bates deserved to win. The international skating -- so, if the global governing body is unwilling to investigate the scoring, there is really little recourse for Team USA. But after winning silver, Evan Bates said, we're married, so we're going to be fine. We're going to go home and we're going to have a life with three Olympic medals to their name. They are tied for winning as U.S. Olympic figure skaters of all time.

Now, Team USA curler, Rich Ruohonen, is now officially the oldest American to compete in the Winter Games. 54 years old. USA's game with Switzerland was out of reach, so they subbed him in and he made history. The first time that he tried to make the U.S. Olympic team was 1988. His current teammates weren't even born. Actually, they weren't born the second or third times he tried to make the team. His teammates are in their mid-20s and they say he's like the team dad. They begrudgingly laugh at all his bad dad jokes. He's a personal attorney. Now, he is the first American to ever compete in the Winter Games. To his resume, some things just age like fine Italian wine, Pam.

Now, tonight, we're going to have finesse and fury and maybe even a backflip on the ice, just because. Team USA figure skating sensation, Ilia Malinin, nicknamed the Quad God, is flipping and twisting his way into the men's long program. He's nicknamed the Quad God, Pam, because he's the only person ever to pull off a quadruple axel in international competition. He's already taken home team gold and, Pam, on what we can expect to see from him tonight, he says we're definitely going to see him at his best, so watch out, world. And how did he get such a good head of hair? I mean, some guys just have it all.

BROWN: I mean, it's just unfair, right? It's just unfair, Coy. All right. We'll be watching that tonight. We'll be looking out for those flips. Thanks so much. Coy Wire, live for us in Italy.

WIRE: You bet.

BROWN: And more from the Olympics. A Ukrainian skeleton athlete is appealing the Olympic Committee's decision to disqualify him from the competition over his helmet that honored athletes killed in Russia's war in Ukraine. Reuters is reporting that the hearing on his appeal has concluded, and we're waiting to hear the result. CNN's Amanda Davies spoke with him about his decision to fight the disqualification, and here's that conversation.

(BEGIN VIDEOTAPE)

AMANDA DAVIES, CNN WORLD SPORT: How are you, and how have the last few days been?

VLADYSLAV HERASKEVYCH, UKRAINIAN SKELETON ATHLETE: Tired, tired, and definitely after today. That morning I felt emptiness, but now I'm just tired.

DAVIES: And you have decided to appeal to the Court of Arbitration for sport. Do you still have hope that you can compete?

HERASKEVYCH: I think if we have desire, and if cast have desire, we can figure something out. I believe still that I'm right, and it's not my job to decide how to do it. I believe that IOC was wrong with this decision, and it is work of IOC to decide how to make the situation fair to me.

DAVIES: I know that the IOC discussed a couple of options with you. You said there are not enough black armbands to honor the victims of this war, but was there any bit of you that contemplated racing, that thought about not wearing the helmet and doing the race?

HERASKEVYCH: So, I want to put it again like in a comparison, yes. Again, figure skater Maxim Naumov, he wasn't wearing a black band, so like it's not equal treatment. And one athlete can do it without a black band and like (INAUDIBLE) and to make it a good honor. Another athlete can't do it. What is the reason about it? And then they argue with me, OK, it was not in the field of play, but OK, I have another example, I have another example.

But I think it's not the right approach. Like if you want to treat athletes equally, then you should treat athletes equally. And that's my position.

DAVIES: We saw your dad was incredibly emotional, the pictures of him in Cortina this morning. How much did you talk to him about the decision?

HERASKEVYCH: A lot. So, we share a long drive here, so I had some time to talk with him. And yes, for us, it's a hard moment. And we share a big struggle to develop the sport in Ukraine. Of course, it would be amazing point of the story if I'm able to compete and earn the medal. And of course, it will be very historical for Ukrainian skeleton in a sport perspective. But suddenly, this moment was taken away from us.

So, I understand my dad. And yes -- so, I was also very emotional. And for me, it was hard to understand this decision.

[10:55:00]

DAVIES: Do you see it as the end of your Olympic dream?

HERASKEVYCH: It's a good question. So, now, it's really early to say. Now, I'm too tired. And definitely after Olympics finished, I need to have some rest from the sports. And with this scandal, with this huge pressure from IOC, with this formal meetings and formal different kind of meetings, it's really hard to talk about Olympic dream and about Olympic values.

Because IOC should be representative and be people who defend Olympic values. But for some reasons, we changed these roles. And now, we are trying to defend Olympic values. And IOC tried to discriminate us.

DAVIES: Is there anyone you can take from it, given the attention that your story has garnered over the last few days?

HERASKEVYCH: So, first and the biggest win, it's memory of this athlete. So, people are now super united about this story. And I'm really grateful that it's -- I think, it's also a very good story when -- how sport can unite people. And now, they're united around these athletes, and they're united around their dignity.

(END VIDEOTAPE)

BROWN: And our thanks to Amanda Davies. We're going to have more news right after this break.

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