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people, including a 9-year-old. they say a tip led to his arrest. >> also happening today, the fed is expected to raise interest rates again. the big question, though, is whether the fed chair, jay powell, signals that a pause is to come. also, the biden administration now signing off on sending 1,500 troops to the southern border ahead of an expected surge in migrants. and the u.s. announced a new immigration deal with mexico aimed at deterring border crossings. >> and new and promising data just released on an alzheimer's treatment. details about the drug the company says significantly slows cognitive and functional decline. and "the new york times" reports that said, quote, it's not how white men fight. new information on how that text may have contributed to his firing. "cnn this morning" starts right now.

we do begin with the texas massacre suspect accused of gunning down five of his neighbors. he is now under arrest after a huge manhunt. the fbi says it received a tip that he was holed up in a house just miles away from the murder scene. we're told a tactical team went in and find him hiding inside a closet under a pile of laundry. this is video of him, francisco oropeza, being led out in handcuffs and put in a truck. >> we don't let up. we always said, it's not a matter of if, but a matter of when the suspect is going to be caught. and we're extremely glad that today was the win. >> on friday, investigators say oropeza stormed into his neighbor's house with an ar-15 gun, murdered five people, including a 9-year-old boy, after the family complained about him shooting outside of his house late at night. the four-day manhunt stretched all the way down to the southern border, but this is where they

ended up finding him. you can see just how close the suspect was hiding to the original scene of the shooting. let's go to ed lavendera, he continues to follow this in cleveland, texas, where the murders happened. they were looking this time yesterday, they had no leads and now this. >> good morning, poppy. well, in the last few days, fbi officials tell us that more than 200 tips came pouring in from across the country, as they tried to hunt down francisco oropeza, but the tip that brought all of this to an end came in late yesterday afternoon, and as that news was breaking, the partner of one of the victims told us that they were so happy and relieved. the manhunt came to an end in a home less than 20 miles from where authorities say francisco oropeza shot and killed five people last friday night. the arrest was captured on video by a neighbor who witnessed law enforcement officers descend on the scene of the house where

oropeza was found. the san jacinto county sheriff announced the arrest calling the accused killer a, quote, coward. >> he was caught hiding in the closet, underneath some laundry. they effectively made the arrest, he was uninjured, and he is currently being taken to my facility in cold springs. >> investigators say an anonymous tip led authorities to oropeza's hiding spot around 5:15 local time tuesday afternoon. that tip led to a home associated with one of oropeza's family members. a law enforcement source told cnn. just over an hour later, oropeza was captured. >> we just want to thank the person who had the courage and braver to call in the suspect's location. >> a law enforcement source also tells cnn that investigators had surveilled francisco oropeza's wife to a home in the same area where the 38-year-old fugitive

was arrested. authorities say they are now investigating whether the suspect had any help in hiding while he was on the run for four days. >> nobody else is in custody tonight, and i'm assuming that they are still at the house, questioning the people that were at the house where the suspect was arrested. >> investigators say it all started when oropeza was asked by his neighbors to stop shooting his rifle in his front yard, because their newborn baby was sleeping. in response, he allegedly opened fire on his neighbors in their home, killing five people, all honduran nationals including sonia guzman, 25 years old, and their son, danielle guzman who was 9. oropeza's arrest brings a sense of relief for this community which has been gripped by fear since the deadly rampage. >> this is a very sad time for the victims and i hope that this will bring them some comfort.

and they can grieve. >> and poppy, francisco oropeza is expected to make a court appearance later this morning here in san jacinto county. he has been charged with five counts of murder and is being held on a $5 million bond. the sheriff here in san jacinto county says there is a chance that these murder charges get evaluated to capital murder charges, which would mean that he would be eligible for the death penalty here in texas. >> poppy? >> ed, thank you so much. some answers for the family this morning, at least. >> some of those also. also more answers this morning after an urgent manhunt is now underway near the university of california davis. there were three stabbings in less than a week. 50-year-old david bro was the first attack victim who was killed on thursday. then on saturday, 21-year-old college senior, creme najem was killed. his father says he had a bright future ahead of him. >> he was just six weeks away from graduating. this was his last quarter.

he was so proud and so happy and so thankful. >> then, there was a third stack on monday that left a woman in critical condition. her friend says that she didn't know what hit her. >> when we turned to our friend, she had been stabbed once. she thought it was a punch. >> it's hard to sleep when you're in fear for your life, bro. it's very, very difficult. >> overnight, authorities have lifted the shelter in place order that had been put in order for davis, california. now they're combing through tips. they have not been able to track or link any of the attacks so far. officials have described the suspect as a man with curly hair, a thin build, and light complexion. they say he's between 5'6" and 5'9". this morning, the biden administration is taking steps to address the crisis at the southern border. 1,500 active duty troops will be sent to the u.s./mexico border and the administration and officials right there on the ground are bracing for a surge of migrants when title 42 expires at the end of next week. the trump-era policy allows officials to expel migrants

because of the pandemic and this crisis is not just exclusive to the southern united states. any minute now, buses of migrants from texas chartered by the governor of texas, greg abbott, will arrive right here in new york city. that's wre here we find our pol sandoval. we'll get to you in a moment. but first to priscilla alvarez at the white house. obviously, you cover the white house, all things biden administration, but have also deeply covered the southern border and immigration. what can we expect from this? >> well, poppy, this is a measure that we have seen the federal government take before, when they anticipate a surge. and what these troops do is allow customs and border protection officers and agents to patrol, to process migrants. so what we know from officials is that this will be a 90-day deployment. it includes ground base detection, data entry, as well as warehouse support. and it's already, to some degree, receiving pushback from democrats. senator bob menendez, who has

been a critic of the biden's immigration policy says deploying military personnel only signals that migrants are a threat that require our nation's troops to contain. nothing could be further from the truth. but poppy, this is one of many measures that being taken by the biden administration as they anticipate an influx of migrants have title 42 lifts next week. and it includes also a deal struck with mexico that we learned about overnight, that will allow the u.s. to return certain nationalities, non-mexicans, to mexico, and it includes expediting asylum processes as well, and bolstering transportation and capacity along the u.s./mexico border. and this is an issue that is a political vulnerability for biden. it's opened him up to criticism from democrats and republicans. and it is already stoking tensions with cities like new york city. >> and speaking of that, polo, you're here in new york where the democratic mayor here has been very blunt in his assessment of this. not just how the white house is handling it. he's been critical of

republicans. but talking about the effect that migrants here in new york have had on the city's resources, straining them. >> yeah, it certainly has led to some political friction, too, kaitlan. and it's important to point out that we're going to see today here in new york city's port authority in manhattan, it's certainly not unprecedented. the governor of texas has taken the step before in sending those migrants, who have been processed along the southern border by federal authorities, who are requesting to head to the east, we've seen this before. we saw it in august when some of these buses were arriving here in new york city. we should point out, that is just a fraction. some of these chartered buses are just a fraction of the larger number of migrants that we've been seeing here. now closing in on nearly 60,000 in the last year. and costing the city well over $817 million. so the concern here for officials is not just the obvious political theater behind all of this, as we get ready to see some of these buses arrive later today, but also the lack of coordination. one city official telling me

this morning, kaitlan, that had it not been for some of the ngos on the ground in texas, they wouldn't even know that they were coming. that really does go, speak to the level of concern on behalf of new york city officials, the conversation that you guys had recently also with chicago's mayor. very similar, as well, as we continue to see these efforts really amped up again by the texas governor to send those migrants who are looking to head to other parts of the country, offering them free rides. and the mayors in those cities are saying that each additional asylum seeker certainly adds more strain to the system that already can't handle anymore. >> i've heard that from a number of mayors and governors across the country. polo, thank you. priscilla, thanks very much for that reporting at the white house. >> also this morning, former president trump is considering skipping one or more of the republican primary dates. we have dates and reporting about his potential strategy next. >> overnight, north carolina republican lawmakers reaching a deal on new abortion restrictions in that state. what does it mean for women there and how the law stacks up

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ron desantis. one of former trump's advisers told cnn, why would we debate? that would be stupid to go out there with that kind of lead. our kristen holmes who was following the former president joins us this morning from washington. good morning. there were threats and a debate at least skipped last time around for trump. so same thing this time? >> good morning, poppy. everyone i have talked to who has had discussions with the former president in the last several weeks says this is a real possibility. i did talk to one trump adviser who advised me that this was still fluid. that this could change. it was early in 2024. and as you noted, trump's considered main rival, ron desantis, hasn't even entered the race yet. but according to these people, they are looking at the current landscape and seeing those poll numbers, seeing that lead. and they think that it would only benefit trump's rivals for trump to get up on the stage with them. the other thing to note is that there are two other reasons that he would potentially skip these early debates. the first being timing. trump has told a number of

sources that i have spoken to that he doesn't want to debate in august. he thinks it's too early. he wants to enjoy his summer. trump advisers told me that they told the rnc that before those dates were ever announced. but i did have two sources push back on that, saying that rana mcdaniel, the chairwoman, called trump directly and told him about those debates and there was not this aggressive level of pushback. the other reason is location. that second debate is supposed to be held at ronald reagan library in simi valley, california. former president trump has told a number of people close to him that he doesn't want to perform there, because he holds a little bit of resentment for the fact that they have never invited him to speak, despite the fact that they have invited a number of other republican leaders to speak. >> what about the rnc? what they're saying, what they could do. >> well, remember, this is up to the former president, to the candidate, to participate in this debate or not, as you have said, poppy. he skipped a debate last time around, back in 2016. but the thing to note, i spoke

to a number of rnc officials, senior republican operatives who say, they do believe that trump will get up on that debate stage, when it comes down to it, because he doesn't want see his rivals, particularly ron desantis or mike pence out there getting all of the spotlight, poppy. >> christine holmes, really interesting reporting, thank you. speaking of former president trump, he is not going to be taking the stand here in new york during e. jean carroll's trial accusing him of rape and defamation. that is according to his attorney, joe tacopina, who you see here with him when trump was in court for a different case. carroll's attorneys say they do plan to show clips from the president's deposition in this case. she's suing trump for battery and defamation. she says he raped her in the mid-90s in a bergdorf dorman's dressing room. he said it never happened. one of carroll's friends did testify. she said five minutes after the rape, she heard from her friend.

she was breathless and hyperventilating. >> her attorneys called her friend, who she called five minutes after, lisa bernbok, and she was there to corroborate carroll's story. she provided some vivid details, saying she remembered it was in the kitchen, it's between 6:00 and 7:00 p.m., she was feeding her little kids and got this call from carroll who was hyperventilating, emotional, and it said it sounded like she had a jolt of adrenaline going through her body. and carroll recounted to her the same story we heard carroll testify to. the meeting at the revolving door, going upstairs to the lingerie department, and that's where she said she was assaulted. and her friend told her, e. jean, she raped you and you need to go to the police. and she said, no, no, we got into a fight, and let's not talk about this again. they also called another woman who was not associated with e. jean carroll, but she said she was assaulted by trump on an airplane in 1979. and she provided this testimony saying he groped her, he grabbed

her, and carroll's attorneys called her because they want to show a pattern. they played a video from trump's campaign where she said, she wouldn't be my first choice. they're saying if he attacks someone, they call him out on it, he attacks them back. >> he's not going to testify, as kaitlan said, but they'll show clips of his deposition in this trial? >> this is a civil case, so he's not herorequired to be there, ae has chosen not to appear at all in this entire trial. he's on trial, like you said, with this allegation of rape. he's chosen not to appear. so they can use this videotaped deposition. they're going to play, i think she said, about 45 minutes of it. and we've seen the transcript of this, so we know what he says. he calls carroll nuts, he denies this. but that will be the one look that the jury sees of trump in this, facing these allegations and what he says to it. there's a limitation here. they can't ask him questions based on what's come up now. you know, it will only be what he was asked about in october. and carroll's team says that

they're going to rest their case probably as soon as tomorrow. so this is moving along. >> and his attorney says it's his call not to come. he's been avoiding court. kara scannel, i know you've been tracking all of it. thank you. newly released documents are pulling back the curtain on a pivotal period for the supreme court. we'll talk about that. also, watch this. >> yeah, if your reaction is, you need to see that video again, that is what many people said after they watched this. that is an officer in virginia. he narrowly escaped getting crushed by a car out of control coming from a cross lanes of traffic during a traffic stop. police say the 17-year-old driver of that car was speeding and lost control. incredibly, the officer only has minor injuries. the teen, though, is facing reckless driving charges. at adp, we understand business today looks nothing like it did yesterday. while it's more unpredicictab, its possibilities are endless.

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in north carolina, republicans now moving forward with an abortion ban that is all but certain to pass. state lawmakers revealed the bill after secret negotiations.

it would restrict abortion after 12 weeks with exceptions for rape, incest, and if the mother's life is in danger. not as restrictive as bans in other states, but still pretty restrictive. governor roy cooper is a democrat. he won't be able to veto this one like he has with other abortion bills in the state in the past. this time the gop has a supermajority in his state. all of this comes after we saw abortion bans fail in south carolina and nebraska in recent days. as some lawmakers push for a lot more transparency and ethics reforms to the supreme court, new documents are pulling the curtain back on a really pivotal period for the high court. the library of congress has released a trove of once-private papers belonging to the late justice, john paul stevens. our senior supreme court analyst joan biskupic has gone through all of them. he joins us now. this is so interesting, because it's so rare. and we don't get it for all of the justices. and i just want to start out, joan, with one thing that it showed, how justice sandrad day

o'connor really provided the early framework and steered the 2000 election. can you take us behind the scenes? we're talking about bush versus gore. >> sure, poppy. frankly, i live for days like yesterday. seriously, when you just said i'd been through all of them, no, because there's like 700 boxes. >> a lot of them, i should say. >> i will be. it's just so great, because it's rare that these papers become available, it's not exceedingly rare. the last batch that we had came from justices that served through the early 1990s, justices thurgood marshall. and this pivotal period that includes bush v. gore is from 1994 to the year 2004. all of these papers are opened up, so we can see who influenced whom, what other justices who might have secretly steered the outcome, how much they might have been looking to outside forces. it's just a real treasure-trove to understand how the law of the

nation is decided. and in bush v. gore that you asked about, that 5-4 opinion that came down late on the night of december 12th, 2000, deciding the election, giving george w. bush the white house over then vice president al gore was an unsigned opinion. we weren't sure exactly who truly influenced it. and what we see is that the actual writing was done by anthony kennedy, but he was using a framework that was provided by justice sandra day o'connor, the first woman on the supreme court, and a woman who herself was steeped in politics, because she was an arizona state legislature, and i love to say that she came to washington knowing how to count votes and she truly did. and they worked together, again, to give bush the white house. but also to rob chief justice william rehnquist of a theory that he was pushing that frankly would have really empowered state legislatures at the expense of state courts and

state constitutions. so we got to see all of that, plus some of the tensions behind the scenes. you know, just as antonin sclsc scalia, famously used to tell the public, get over it. we saw yesterday some of what he was writing to his colleagues about how angry he was. but even mild-mannered anthony kennedy was saying, you know, you liberal dissenters who are saying that the integrity of the court will be lost, you're just putting forward something that will be a self-fulfilling prophesy. >> it's fascinating, especially when you think of the stevens dissent in bush v. gore, even though we may never know with complete certainty the winner of this year's presidential election, the identity of the loser is perfectly clear, it is the nation's confidence in the judge as an impartial guardian of the rule of law. that was then. we're 23 years past that now. >> you know, poppy, and it was

bush v. gore seemed so unusual, so unprecedented. and that language that you just read from justice stevens seemed such a departure from how justices would speak at the time. now, it's almost like an everyday occurrence among outside critics of the supreme court, but also among some justices inside. the -- the integrity of the supreme court, it's vaunted impartiality are really being questioned today in a way that back in the year 2000, it was unusual. you're definitely right, poppy. >> what a foreshadowing that was. >> thanks, joan. >> it was. >> thank you. tucker carlson's text message, another one revealed. what we're now finding out about what he said that alarmed fox news executives so much the night before that trial was set to begin. >> also this morning, a disturbing development. at least eight children and a security guard have been killed when a student opened fire at an elementary school in serbia. what we're learning this morning about a rare shooting there.

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we want to take you to some breaking news this morning as police in serbia say that eight children and a security guard have been killed after a 14-year-old boy opened fire at an elementary school. six more students and a teacher have also been hospitalized. cnn's scott mclean is live in london with more. scott, unfortunately, this is not always something shocking here in the united states, but this is very rare to see a school shooting like this, any kind of mass shooting in serbia. >> yeah, that's absolutely right. certainly not a common occurrence, which is why this is getting so, so much attention, because it is so out of the ordinary. and we're just getting bits and pieces of information coming in right now, kaitlan. but i'll tell you what we know. this happened at a school called the vladislav in an upscale neighborhood in belgrade.

this happened to the ministry of internal affairs around 8:40 in the morning or so. so early on in the school day local time. they say a 14-year-old boy, who they say is a seventh grader. they're identifying him only by his initials, k.k., brought his father's gun to school and started firing. as you mentioned, nine people have been killed, eight of them children. one of them was a school security guard. seven injured, six of them children. one of them was a teacher. we also know that a young girl inside that school is currently inside of a hospital, undergoing life-threatening surgery. police are obviously still on scene. they are looking into the circumstances of what exactly happened. there was also a moment where the 14-year-old boy, who was apprehended in the schoolyard, by the way, was brought out of the school. he had a jacket over his head. he was wearing skinny blue jeans and he was put inside of an unmarked car under arrest by police. there were also children coming out of that school, some of them

obviously quite visibly distraught, as you can imagine. i should also mention very quickly that gun laws are obviously much stricter in serbia than they are in the u.s. basically, fully automatic weapons, weapons with a concealer, things like that, those are pretty well outright banned. you can get semiautomatic weapons with a permit or a gun license, but there are also plenty of leftover guns from the conflict in the 1990s. we don't know whether this was a legally owned gun or not, but obviously, authorities are going to give an update in the next 45 minutes and we're hoping get more information, kaitlan. >> scott, after you hear from them, please let us know what they say. scott mclean in london, thank you. new overnight, we're learning what tucker carlson texted that was so worrisome to fox executives and the board that it reportedly contributed to his firing. "the new york times" reported on the message, which was sent on january 7th, 2021, obviously a pivotal day right after the fle insurrection, and he was talking about a video he saw of trump supporters beating up, in his

words, an antifa kid. it was redacted in the dominion lawsuit court filings, but here is what "the times" says the behind that big black box at the bottom of those filings. a quote from tucker's text that read, quote, it was three against one, at least, jumping a guy like that is dishonorable, obviously. it's not how white men fight. yet suddenly i found myself rooting for the mob against them, hoping they'd hit him harder. i really wanted them to hurt the kid. i could taste it. somewhere deep in my brain an alarm went off. this isn't good for me. i'm becoming something i don't want to be, closed quote. "the times" was only able to unveil the contexts of that text with interviews with peoples on conditions of anonymity. let's talk about this and a lot more. you just have this new book out that we're going to talk about as well called "traffic, genius,

rivalry, delusion and the billion dollar race to go viral." you write a lot about the rise of right-wing populism online. we'll get to the book in a minute. wow, this tucker text, do you think this is why this went to trial? >> this is the thing that every reporter was trying to get and kudos to "the times" for figuring it out. i think there were a lot of viewers who would not be totally shocked to see him say something that racist. but fox had been somehow in their own minds, i guess, holding up this line that, you know, all of these allegations of racism against tucker and against fox were totally false. and i do think this line about "this is how white men fight" may have been the last straw for them there. made it harder to pretend anything else. the rest of the text is very dark and reflective, but less likely to be the thing that triggered his firing. >> and we haven't seen fox or tucker carlson comment on that text so far. we'll see what they say. on your book, you talk a lot

about -- and we're talking about how the media landscape is changing, especially with the carlson's departure with a huge slant on fox news. you talk about in this book buzzfeed, which of course you were editor in chief of buzzfeed news, and all of these sites that depended on traffic to go viral, and also how they built so many of their company models based off of facebook, but once that stopped being a venue for them to use, they shrunk, essentially. >> i was thinking about those sort of early days of building social media and sort of hunting for traffic. when i was watching this carlson thing, because a lot of -- there was a perception that the early internet was among other things, left-wing. like facebook was -- barack obama visited facebook. because obviously facebook is a democratic institution for college kids that help barack obama get out the vote. and i think a lot of people in that early sort of online world thought, well, the election of barack obama is like the culmination of this new digital revolution. and i think what -- but when i looked back at like who was building this world, in fact, a

lot of these early right-wing figures, andrew breitbart, steve bannon were there all along, were very interested, were studying these digital media tools. and as the universe of people on social media grew, you saw -- you saw these conservatives really make the most of them. and channel a lot of the anger that you also see in conservative cable. just that raw, often racially divisive anger. and take that to really fuel, among other things, the trump campaign in 2016. and then trump's election is kind of the culmination of that whole moment. >> you talk about them basically sitting down, and the way you describe it, the white ikea team from the progressi internet team looking over the shoulder. you wrote, obama and trump. "the huffington post" and breitbart. it's hard to imagine they would have much in common, yet both movements were rooted in part in the new way of thinking about people that came when you saw them as traffic, measuring interest and and went channeling it into action. what have we learned from that,

as we look at a completely new media landscape, that in some ways is reverting back to the old, what were deemed sort of din dinosaurs, coming back into prominence as some of these others go away. >> there was this early moment on the internet, and i was marginally part of it, like gawker and buzzfeed, like you were flying and suddenly you had instruments and you could see everything and you could see exactly who was looking at what. and when it came to this kind of political stuff, you could see, wow, the most divisive stuff, sometimes the most, the stuff that pushes the edge hardest is what attracts people. and facebook built this kind of a mechanism, where they were looking for engagement, looking to see, what do people stick to and what will people comment on? and often people will comment on the most outrageous thing, the most shocking thing. and there was a period that i think alienated a lot of people from these platforms, where that was where you opened facebook. and what you saw was the thing most likely to outrage you.

and that was a choice. >> and that was not always a given. it's hard to remember this now, but there was a brief period where people thought they would be impairsed to share things like that or get into shouting matches on the internet. clearly, not where we've ended up. >> i think we were very utopian about, you know, among other things, right, when media is social, when it's open, people are going to share fund-raisers for earthquakes, they're going to share pictures of cats. you know, and nobody would ever go on this big public space and just start yelling about politics. like, what a crazy, unpleasant thing to do. skp and everybody will hate you. that didn't exactly turn out to be how human nature works. facebook also tweaked some dials, because they kind of saw and liked the level of engagement and stickiness that you got when people were screaming at each other about politics. >> but as kaitlan points out, it's a choice, it's our choice, it's a human choice. >> it's a human choice, but i think with one of the things that we saw were the choices these big tech companies make can nudge you.

>> i think it's more the choice that facebook made on stuff like this. the book is fascinating. >> congrats. >> thank you, thanks for having me on. >> the new book, again, traffic, genius, rivalry, delusion and the billion-dollar race to go viral. it is out now. in a couple of hours, the federal reserve will make a decision on interest rates, probably raising them once again. our next guest ran the fdic during the 2008 recession. and in the aftermath, what sheila bayer thinks the fed should do. probably possess pause. we'll ask her, next. ♪ ♪ get 2.9% apr for 36 months plus $1,500 purchase allowance on an xt5 and xt6 when you finance through cadillac financial. ♪ - [narrator] we're coming together for our yearly service project and running a t-shirt fundraiser through custom ink to help the cause. plus, their design services team

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welcome back to "cnn this morning." it's a big day for the u.s. economy. the federal reserve is expected to raise interest rates by a quarter of a percentage point. this afternoon, trying to continue this flight on inflation. it comes days after the collapse of first republic bank rattled the market. take a look at the hit to regional bank stocks. shares of pac west fell 28% almost yesterday. all of this as the u.s. government stares down a fiscal cliff, with negotiations over raising the debt ceiling set for next week. time is running out. treasury secretary janet yellen said this week governmsaid gove coffers could run dry as early as june 1st. sheila bayer was the share of the fdic before and after the great recession. she knows a thing or two about it. >> glad to be here. >> you spoke with my colleague matt egan yesterday and did a really interesting interview.

and you said, look, jerome powell needs to pause. the fed needs to pause and not raise interest rates. that's not most likely what they're going to do. why do you think raising rates even by a quarter percentage point is the wrong move? >> i said that last december, actually. they're going too fast. i'm a hawk on inflation. they can only go so fast, you know. it was 14 years, mostly, near zero interest rates. significant inflation. you can't reverse it overnight. and it's better to hold a steady course than keep ratcheting up these interest rate increases. you're right, i have no doubt that they'll raise by 25 basis points. but at least maybe they can signal that now they will be hitting pause. i hope they do. because, you know, the pace that they're doing this is unsustainable. and i fear, later on, they're going to have to start lowering rates, which is not going to be a good thing, either. >> but people that disagree with you would point to the inflation of the 70s. and i get that this is a different time and a different predicament, but the stop and go with rate hikes then prolonged

that inflation pain. no? >> yeah. well, i'm not saying stop -- they lowered and raised back then, too. i'm saying, hold course. which is to hit pause and go slower. i think that's really the key. and there are some different things going on from that period, as well. we did have a very long period of uncertain interest rate policy going up and down, up and down. they've pretty much kept them on a sustained low level for almost 14 years. a lot of leverage has built up in the system. the system today is much more leveraged than it was back when paul volcker was having to contend with the inflation back then. they're also using different tools. more powerful tools. instead of just raising rates through buying and selling

securities, they are actually paying banks and many market funds, major financial not to give them the ability to park money there of the 4.9 in the reserve account. so this provides powerful incentives in the financial system to play it safe, park your money, not lend. that is not a tool that was used during paul volcker days. yes, paul volcanoer is a role model in terms of role model to fight inflation, and we need to beat inflation, but we also need to understand, conditions are a bit different than the ones he confronted. and it's just common sense. you can't go this fast. and it is, i fear, going to cause some additional stress in the financial sector. >> jpmorgan came in early monday morning and bought up most of the assets of first republic bank. it makes the biggest bank in america even bigger. i mean, jpmorgan is now twice the size that it was in 2009, when you were leading the fdic. do you share the concerns that some lawmakers have about just how it is these big banks now, that are sort of seemingly the only vehicle to rescue or buy up these mid-sized ones.

>> well, i don't know about that. i still think it's possible for others to come in and make competitive bids. but there is a big overall issue about increased concentration, in the banking sector. i do think that one thing that congress could do to help ease current jitters around uninsured deposits as well as stem this flow, this relentless flow of -- it's not just acquisitions, it's deposits that are going to be too big to fail institutions, when people get uncertain, is to provide unlimited coverage for transaction accounts. transaction accounts, operational accounts that businesses, nonprofits, governments have to make payroll, pay other expenses, they should be zero interest, so they're not there, they're just for operational purposes. but there's a strong policy interest protecting those. they can't really move. once you're set up, it's hard to move someplace else. it's important to the real economy.

i think that could help stem the flow of the deposit migration, if they would provide unlimited coverage for transaction accounts. and we did that temporarily. >> but gary cohn who worked in the trump administration, an adviser to trump and ceo of goldman sachs said that's a bad idea, because it will be a race to the bottom in terms of focus looking -- >> go ahead. why is it not a bad idea. >> and he is -- he is absolutely right, if you're talking about unlimited deposit insurance. that is a terrible idea. transaction accounts that have zero interest, so weak banks couldn't take an unlimited guarantee and offer a really juicy rate and bring in deposit funding, just zero-interest transaction accounts, those that are used by businesses and other organizations to pay bills, including payroll, we did that during the great financial crisis. that would -- it's not really an issue there, because those accounts can't move very easily. and there's a good real economy reason to protect those. because you want to be able to

have those customers make payroll and continue paying their bills and keep the business operational. it's just transaction accounts. that's the only place where i do it. >> it's an important distinction. sheila bayer, thank you very much. as we wait to see what the fed chair is going to decide today, there's new promising data this morning that could be crucial in the fight against alzheimer's. we'll break down the data. and also see the ad that was made using ai, artificial intelligence, that is now raising serious concerns about the impact it could have on the election and politics. (♪ ♪) you inspired the lexus es to be, well ... more you. so thank you. we hope you like your work. (♪ ♪)

we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you

didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch. we moved out of the city so our little sophie could appreciate nature. a literal ton. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch.

if you have this... consider adding this. an aarp medicare supplement insurance plan from unitedhealthcare. medicare supplement plans help by paying some of what medicare doesn't... and let you see any doctor. any specialist. anywhere in the u.s. who accepts medicare patients. so if you have this... consider adding this. call unitedhealthcare today for your free decision guide. ♪ this morning, there's promising new data just released in the fight against alzheimer's. eli lilly says its new drug

significantly slowed cognitive decline. according to the company's latest clinical trials, some people who took the drug slowed their decline by up to 35% compared to those who took a placebo. the study included 1,700 participants between the age of 60 and 85. joining us now is meg terrell. this means so much to so many people. we've seen how many people are struggling with this. the question is, how legit is this study? >> it's extremely legit. in terms of running clinical trials, a phase iii placebo-controlled study is the gold standard. this was run with a lot of patients. lily will use this to file for fda approval this quarter. what this drug does is it's the latest in a new group that is successfully removing amyloid plaques from the brain. you can see in this graphic, the top two images are patients on this drug. this is an earlier study. over the course of 76 weeks, that plaque buildup in the

brain, this is what this drug does, starts to get removed really significantly. but that patient on the bottom, you can see those yellow areas of the brain are still really present. that is showing that they have these plaque buildups that stay there and this is contributing to the course of alzheimer's disease. what this study showed is by successfully removing that plaque, you can slow the course of the disease in this case by 35% on average. >> there has been so much hope and so much disappointment in really well-known alzheimer's drugs. and the expense -- there have been big fights in government over the expense of these drugs for older patients. how much -- do we have any sense of how much of a cost? would it be covered by medicare, medicaid? >> that is the key question. right now, there is a drug approved, but it is not covered broadly by medicare. and of course, this is a population that requires medicare coverage. that drug costs more than $26,000 a year. we don't yet know where lily will price this if they get fda approval. it's possible it could be similar, but these are very expensive medicines.

so it's expected that when these drugs get full fda approval, there will be a change in that medicare. >> when could that be? >> lily will file this drug this quarter, and it could probably take maybe 10 months to a year for the fda to potentially approve it. the first drug may get full approval in july. so we could see that medicare decision change. >> side effects? >> so side effects are really important here. this is not a benign drug to take. the most common things are things like brain swelling and these microhemorrhages or small pleads in the brain. you can see that's a fairly sizable number of people who had those, but some of that was asymptomatic. what you really worry about is when those are severe, and that was seen in just less than 2% of patients in this study and two patients died related to that side effect in the trial. >> thank you, meg. welcome. >> thank you. >> we'll be seeing a lot of you. >> thank you so much. >> "cnn this morning" continues right now. th