we begin with breaking news this afternoon. the federal reserve making a decision on interest rates. the announcement came out just seconds ago. walk us through. >> reporter: for the fourth consecutive meeting the federal reserve deciding to hold rates steady. that was universally expected. this decision just came out in the last minute or so. one thing that got my attention in the press release was the committee saying it does not expect it would be appropriate to reduce the target range until greater confidence that inflation is reaching 2% pushing back against expectations that a rate cut may come as early as march. i can tell you that wall street has been divided on when we can expect rate cuts. the fed has indicated 2024 will be the year we will begin to start seeing some rate cuts.

the question had been, if not in this meeting then when? some banks had suggested it could be as early as march. this statement is sort of pushing back against that. the reason why is, for example, you look at some of the indicators. the gdp coming in really strong, twice what we were expecting for the last quarter of 2023. inflation cooling quite substantially. the cpi coming in at 3.4% but if you look at other indicators there are some on a six-month basis, it is a lot closer to the target. so that is coming in quite nicely and the jobless rate has been under 4% for the last two years or so. you put that all together and you have an economy that has done better than expected and cooling inflation. the thinking among some is, what is the rush? why juice the economy of things

are looking good because remember, the fed has said that they do not want to reduce rates until they are absolutely certain that inflation is coming down to the target. the press conference begins in about 27 minutes. i can promise you there will be a lot of questions about when we can expect to see the first rate cut. the expectation is that chair powell will try to keep things close to the vest and keep the language pretty neutral to keep options open but that will be the focus in about 20 minutes or so, when do they think rate cuts will start to be appropriate at least based on the quick look at the report it seems like the economy is holding strong but pushing back on any expectations that a rate cut may be coming soon. >> we know that you will be watching the press conference closely. please keep us updated on what you see there. let's discuss now with our chief economist for moody's.

there was talk of the potential rate cut early in the year. your reaction to the feds statement? >> i think indicating that we won't get the rate cut at the march meeting six weeks from now is premature. they are being cautious so i get it. they want to make sure that inflation is getting back to the target and there's no chance it will really accelerate. they want to be sure to put a dagger in the heart of the high inflation, but i suspect given all the trendlines and data and the data we will have between now and march that by may, the next meeting after march is may, at that point they may start to cut interest rates. so this statement feels like they are saying not march but the data will be overwhelming by may and there will be a rate cut.

>> i know that the fed does not necessarily way on what markets do in relations to the decisions, but of course they cannot escape the potential for markets to not respond positively as we are watching. they all look down even though i want to point out that the dow went down about 75 points and just bounced back about 20 points. they are not exactly responding with great positivity. >> i think that there was hope among investors that the fed would signal more strongly that the next rate cut would be march. i think it is just a bit at the end of the day. if you look at the futures markets and expectations about what will happen it was a close call anyway. so yeah they are disappointed. they want the lower rates, i get it but i do not think it's overwhelming. of course, the fed does look at

what the markets say and do because the impact of the rate hikes translate to the economy through those markets. so what the markets do or say really does matter to them. i think that they want to push back a little bit and make sure that the markets are not getting ahead of themselves and the rate cuts are not coming in march, it again by may i think they will be cutting them. here is the other thing i would say is they are really close to hitting the mandate. they have two objectives. one is full employment and the other is getting inflation to the target. they have the economy on full employment and now they have to get inflation back. they are pretty close so once you are there you have to ask yourself why these high rates. i suspect they will come to that conclusion in the next three or four months and we will see rate cuts. >> as you said, they are

getting closer to that desired mark. the question is though about affordability, prices and certain goods have remained steadily high especially at the grocery store. is there a way that you see those costs getting offset? i can't imagine prices will drop soon so are we waiting for wages to continue trending up? >> that is exactly it. the prices for food have gone flat over the last year. as you pointed out they went skyward in the wake of the pandemic. we are paying a lot more today for a lot of different food staples than we were two or three years ago so that really stings and makes people understandably upset. it's one of the reasons why people can't see the good economic data. they are still being affected by the high inflation that we have experienced. the good news is that wage growth is consistent across all workers. the low wages and

highway -- high wages, the wage is stronger than inflation but with each passing month people will start feeling a little bit better from the sting of inflation a couple of years ago. >> we always appreciate the analysis. thank you. >> sure thing. the middle east is bracing for america's response to the deadly drone attack that killed three u.s. should -- soldiers in jordan. president biden said he has made a decision of how to retaliate. the top iraqi leader said that threats will not go unanswered. at the same time, the most powerful militia has announced they will stop targeting u.s. forces. warren lieberman is at the pentagon. the administration has only just identified the group that they said is behind the attack. tell us more.

>> reporter: what is interesting here is that the white house did not point to one specific group. instead they pointed to an umbrella group called the islamic resistance in iraq which covers a bunch of different groups including hezbollah. the administration has repeatedly been asked, could you hold responsible for the attack that killed three u.s. soldiers in jordan? the president had hinted at hezbollah but here now they say it was the umbrella group called the islamic resistance. the coordinator for the national security council says we could expect a response that could be multi-phased and may not be a single attack. here now with this attribution and another indication of what we could be expecting, including that the u.s. could go after multiple groups which could be a lot of u.s. strikes against multiple targets

belonging to these different groups underneath the umbrella of islamic resistance in iraq. as he pointed out in the statement yesterday, they were telling their organization not to continue attacking u.s. forces. the pentagon was asked about that and they pointed out and said, actions speak longer than words and there have been more than 160 attacks on u.s. forces in iraq and syria including at least three after the sunday drone attack. >> very good to point out there. thank you. we are joined by republican congressman dan crenshaw of texas. he is a former navy seal that served in iraq and afghanistan. thank you for taking the time to be with us. you have mentioned the possibility of striking another general. you are referring to qassem soleimani, that the trump administration took out. why do you think that would work?

>> first of all, it did not start the world war iii that everybody was saying. many on the right were also claiming that. the level iii doomsayers are pretty much always wrong. maybe one day they will be right but for the most part if we stand up for ourselves against our enemies we will be okay because we are dealing with a half rate power like iran. we also had forewarning. it was almost like a gentlemanly agreement on their part. let's be clear about that. >> which are you talking about? >> i am not talking about the retaliation. >> sir, it did not unleash this incredible wave, but there were other strikes including one that did kill u.s. service members. these finish your thought. >> of course.

that is the back and forth we continue to see in the region. if you want to end the back and forth, if you want to tell the other side that the cost will be too high if you keep screwing with us, you have to establish the deterrence. you establish the deterrence by always beating them on the escalation letter. so far we have failed to do that. we have had 165 attacks and we have failed to establish that. they keep trying to kill americans and finally succeeded. luckily that finally got a response from our president and the senators and myself that are saying holding ron responsible. i do not have the exact list of targets. you can't ask me exactly what i would target because i am not in the situation room. the department of defense gives the president a list of targets. they could be people, infrastructure. they could be inside iran or outside. there is going to be a

risk assessment associated with each one of those options. my advice would be to choose the option that makes you just a little uncomfortable. if you are choosing that option you are choosing a disproportionate response that will make them think twice about doing that again. i think that the statement was interesting. it seems clear to me, this is just a guess, that the ayatollah gives them a call and says you better take responsibility for this because now they are calling for retaliation. even though they probably, of course, have manned and equipped and funded them, they are indirectly responsible. but they are trying to get out of it because they are scared. that is a good sign. that does not mean we don't respond. i hope that the president will decide on something much stronger than the last few months. >> that has been an interesting response that they did that. so what you are talking about

is something that could result in further u.s. service member casualties. listen, you certainly know, service members sign up. they take on this risk so the vast majority of americans do not have to do that. if we are just being honest about what this could prompt, that is worth the risk, it sounds like, in your estimation and evaluation of the situation ? how should congress, republicans and democrats, communicate about that because so often what you hear is the politicization of these deaths. >> it is a good question. it's one of the many asked. i always scratch my head when it is asked because i guess my response is, what choice do you think we have? there seems to be this sense of false choice that many people believe in witches we could just have peace if we choose

peace. here is the thing. the other side always gets a say in whether you have peace or not. we did not do anything to instigate this particular attack that killed three service members. by the logic of doing nothing and maybe asking for peace or sending them nice letters or something, we are going to assume they are just not going to keep killing americans? why would they assume that? it is in their doctrine to kill americans and expel us from the territory. that is the whole point. it has been for 20 or 30+ years. it's how we ended up in the war on terror in the first place. it is too naove to believe that we can never stand up for ourselves that standing up for ourselves only hurts us more. that's how you keep getting bullied. international relations and foreign policy is not different from bullying tactics. if you want to keep getting bullied, keep signaling to the belief that it is okay when

they push you down. then you will keep getting bullied and your friends will keep getting bullied. >> i don't think anybody is suggesting not doing anything. it is the range of options and how aggressively you respond which is being abated -- debated at this point in time. i want to ask you about something pretty important. one of our analysts has reported that secretary of state antony blinken has asked the state department to review options for possible u.s. and recognition of palestine as a state. this is coming one day after the uk foreign minister said that the uk will consider doing that in an effort to help end the war. how do you react to that possibility? >> that is a much longer conversation. first of all, what are they considering to be palestine? do they consider gaza or the west bank? the reasoning is how they may improve the situation, but we

as americans democrat or republican have been trying to figure out whether it is a one state or two state solution for 30 years at this point. it does not work because we are not the ones that live there and we don't understand the history that lives with each and every one of those israelis and palestinians. at first it strikes me as a bit naove given the current situation. this is the first i have heard about it so i don't have more details. >> that is certainly fair. we appreciate you being on with us. thank you so much. >> thanks. still ahead, meta's mark zuckerberg and other big tech ceos being grilled by lawmakers for failing to protect kids. we will have a report from the hill. fbi director chris rey on capitol hill with the dire warning that chinese hackers are preparing to wreak havoc on

u.s. infrastructure.

today, an emotional and sometimes testy hearing on capitol hill that brought some

extraordinary moments. moment -- members of the senate judiciary committee taking turns grilling social media executives about what they are doing or not doing to keep kids safe on their platforms. the ceos of meta, instagram, tiktok, snapchat, and x testified as families that lost children sat behind them. some even holding signs with pictures of their loved ones. at one point, mark zuckerberg at the prompting of senator josh holly, stood face-to-face with those families and apologized. >> there's families of victims here today. have you apologized? would you like to do so now? they are here on national television. would you like to apologize to the victims who have been harmed. show him the pictures. would you like to apologize for what you have done to these

good people? [applause] >> this is why we are investing so much in the industry leading efforts to make sure that nobody has to go through what your families have had to suffer. >> i want to go to claire dunphy, has been watching this hearing. what i hearing it has been. what moment stood out to you? >> reporter: what stands out to me as a whole is that it seems that lawmakers are ready to do more than just talk about the issue which is essentially all they have done for the past two years. senator amy klobuchar have some comments that really capture the feeling of lawmakers and families in the room. let's take a listen to that. >> there has been so much talk at these hearings and popcorn throwing in the like. i want to get this done.

i am so tired of this. it has been 28 years and we have not passed any of these bills. it is time to actually pass them. >> reporter: you hear her talking about, it is time to actually pass something. lawmakers press them to endorse legislation to hold them accountable. you hear them talking about the kids online safety act, the stop sexual assault material act and repealing section 230 which protects these big tech companies from being held accountable. the ceos touted some of their existing safety measures. these things that allow parents to observe their teens ' behavior on these platforms. critics and lawmakers said that does not go far enough. we saw some interesting and rare apologies from these ceos. we heard mark zuckerberg there. the snapchat ceo also the will

apologized to families whose children died after purchasing drugs on the platform. for me the big question coming out of the hearing is, will these lawmakers actually take action? it is a rare showing a bipartisan support but there were so many proposals it makes me wonder whether they will be able to coalesce around a single plan of action. >> that is a very good question. thank you for following this for us. just one day after we reported that the chinese president told president biden that china would not interfere in the 2024 election, fbi director christopher wray is revealing that much more could be under attack by beijing. during a hearing on capitol hill, he warned that china hacks on infrastructure are truly and everything everywhere all at once scenario. listen to this. >> china's hackers are positioning on american infrastructure in preparation to wreak havoc and cause real- world harm to american citizens

and communities if and when china decides the time has come to strike. >> we tracked the hearing. this is by far the most direct and public admission from the director that china is a serious threat. >> we have known about this and been reporting on it for several months. the difference now is the direct warning to americans about this. chinese hackers have positioned themselves in the most sensitive of infrastructure. imports, maritime, transportation networks, all of that. in the event of a crisis of taiwan they could use that to disrupt military operations. it is a high level national security issue. americans can be asking what can i do about this, there is something that you can do which is update your

software more often and protect yourself. some of the ways that they are getting in white basic and they are using internet routers that we use at home to cover their tracks. downstream is where they are targeting more critical infrastructure. this seems like a very remote issue for some people, but there are things you can do today. this issue comes at a time when we are reporting that the chinese president gave president biden assurance that we would not interfere in the u.s. election in 2024. now we are watching closely to see how that pans out. it is several months now until the election, and there is an undercurrent to all of that. >> honesty is not generally their forte. thank you so much. still ahead, former president trump making a big play for working-class workers,

meeting with members of the teamsters and hoping to cut into president biden's worker support. we will have more on the message from the boeing ceo to employees, next.

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today, donald trump is back in the city he loves to hate and hate to love. right now in the nation's capital he is addressing members of the teamsters union which represents an estimated 1.3 million workers. it is his latest attempt to drive a wedge between president biden and organized labor, one

of the president's's most loyal constituencies. they backed biden by a wide margin in the last election. that included the endorsement of the teamsters union who also backed hillary clinton in 2016. christian homes is closely following the trump campaign for us. is he confident he can win over organized labor or at least enough workers to put a dent in the support? >> reporter: this is all about the rank and file members. i don't think anyone is under the impression that donald trump will win over organized labor as a whole. his tenure in the white house showed he was not a prolabor president. this is about picking up rank and file workers something that donald trump has said he can do. he said we don't want to see any ground in any demographic to joe biden so that's why we

are going after teamsters as well as union workers. here's what he said today. >> stranger things have happened. usually a republican will not get that endorsement. for many years they only do democrats. in my case it is different because i have employed thousands of teamsters. i thought we should come and pay our respects. as you know, a big part of the voting bloc votes for me. some people say more than 50%. nobody knows the exact numbers but some say more than 50% of the teamsters voted for me so we had a very productive meeting. i think a lot of teamster representatives upstairs were productive. >> reporter: as he said, exit polling shows that union households broke for joe biden, not for donald trump as he implied. we do not have the breakdown of teamsters versus other unions but this is an attempt to drive a wedge between joe biden and

the voting bloc. he also mentioned a bunch of other topics. he talked about the border. he said any senate republicans considering voting for the border deal should not do that. he started to backpedal saying it was not about politics he just wanted a good deal at the border. he also said if he was in office he would not allow japan to purchase u.s. steel. one thing that he did not answer was one, he was asked specifically about conversations of a 60% tariff on mexico. he did not answer that. the other thing he did not answer is what he would have done in retaliation for the three soldiers that were killed. he kept saying over and over again it would not have happened if he was in office. a lot of this ended up turning into an election speech, talking about what he intends to hit on witches crime, inflation and immigration. it's part of a larger strategy of the campaign to reach into several districts that joe

biden won and several different factions and try to siphon off voters. again one of those factions is trying to siphon off that union. >> one fact that has to be considered is that u.s. soldiers were killed during his administration. thank you so much for bringing us that report. we appreciate it. >> let's discuss all of those with our senior political analyst. this battle for union workers, joe biden describes himself as the most prounion president ever. does trump really have a chance to swing those large numbers? >> it is divide and conquer. that's what he wants to do.'s point is, the leadership may not be with me, but there is new leadership at the teamsters and maybe i can get some of the rank and file if i cannot get

the leadership. there was a member of the executive board that was furious that the leadership met with donald trump at mar-a-lago and sent a letter calling trump a scab. he is not going to give up one vote in one of these battleground states. michigan, wisconsin, pennsylvania are key. biden has the advantage with labor there. there is no doubt about it, but i do think they will not give up. >> those states were key for biden in 2020. they went for donald trump in 2016. will 2024 ultimately come down to who wins those three? >> it could. let's say it would be very uphill to win without those states. i think you have to win at least one or two of them. i think both of these

candidates know that. these are key states and labor is so important when you look at estate like michigan where labor is key. hillary clinton lost michigan and that was a big problem she was told at the time that you need to pay more attention and she did not. these candidates are not losing any time paying attention to them. >> i am curious to get your perspective on how well donald trump does with working-class voters. stepping back and looking at his life and lifestyle, it seems counterintuitive that he would have such appeal. >> somehow the democratic party has evolved into the party of the elite for some voters. they see it more as the party for the wealthy and that is a total turn around. donald trump has portrayed himself as somebody who cares

about the working man even though he lives on fifth avenue in a gilded apartment and says, your grievances are my grievances. it is all about grievance. if you have complaints about the way your life is going then i am your person because i am also a victim and if you feel victimized by this economy or you feel victimized by the democrats and you don't think they have done enough for you, i am going to fight for you because i feel your pain as bill clinton would say. this is how he succeeds as a populist candidate. he does very well that way. that is a big part of his appeal. >> we have to leave the conversation there. always appreciate the perspective. >> thank you. a u.s. warship in the red sea has had what officials are calling an unusually close call with a missile that was launched from yemen. let's get more on this. correct me if i'm wrong, this

is the closest that an attack has come to a u.s. warship? >> that is correct. we have seen a number of these attacks, nearly 40 attacking shipping lanes including attacks at u.s. warships. in this case a destroyer that was operating in the red sea. we know from u.s. central command that they intercepted a cruise missile on tuesday. we now know having spoken to u.s. officials that it was within one mile before it was shot down. that is the closest houthi attack be it a ballistic missile or cruise missile or drone has come to a u.s. warship since attacks began late last year. the system that was used to shoot it down as one of the last layers of defense on a destroyer. in previous instances these attacks were intercepted eight miles or more using interceptor missiles. the fact that it got this close is an indication of the fact

that it somehow got through other layers of defense that failed to intercept the cruise missile and was shot down with this weapon system which i should point out is an automated machine gun that was able to track and shoot it down at a range of one mile. this underscores how fraught the situation is as this tension and shipping lanes continues. this is what the u.s. and others were warning about and it underscores the threat modeling to u.s. warships which the houthi have said are a target but also to other vessels operating in that region. >> there was also an incident where the u.s. shot down a missile after this had happened. so this morning, a missile as it was preparing to launch from yemen? is that right? >> this was not a missile that was shot down in the air. the u.s. a surface to air missile. the u.s. saw, according to

central command, that one of these was about to be launched and proactively it before it was launched. these are known as the more dynamic strikes. these are when there is a target that poses a threat at the last second or in that final window, the u.s. will take the shot and strike these. in this case it was a surface to air missile. we have seen some of these in the past in addition to the larger attacks the u.s. has carried out against houthi targets in yemen and the uk has joined in an attempt to disrupt these ongoing attacks on shipping lanes. >> this is a lot of activity you are keeping your eyes on. thank you so much for the very latest. we will be right back.

new details are emerging about tyre nichols's death. new video was released with officer saying that he was initially speeding. another video shows them speaking to his parents after the beating. isabel rosales has fully reviewed the tape. tell us what else you saw here. >> reporter: this is 48 videos in total that have been released, covering about 21 hours. it is dashcam, traffic, body camera footage. and one of the video we see his mother speaking with officers on the night of tyre nichols's beating. she is remarkably calm. officers telling her something must have been in his system.

she just can't believe what they are telling her. >> he was fighting hard. it took three of us and he still got away. >> are you serious? >> yes, ma'am. >> they say he's on something. if they are wrong they are wrong, but my son does not drink. that is not my son. that's what i am saying. >> he had unbelievable strength. >> contrary to what police officers were telling her, toxicology reports show that he had minimal amounts of alcohol in his system below the legal limit and also chemicals associated with marijuana, not something that would indicate unbelievable strength.

>> thank you for bringing that to us. we appreciate it. lawmakers grilling big tech ceos on capitol hill about the risk the platforms post two children. we will take you back to capitol hill ahead.

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tickets to this year super bowl are said to be the most expensive in history. the average ticket is nearly $10,000, a significant jump from last year. cnn's nathaniel meyerson is here to break down the prices. nathaniel, it is not just the super bowl. the price for sports tickets genuinely seem to be up across

the board. >> they are up across the board for us, and i think the next time your miami dolphins come up to new york to play my giants, you're going to have to pay for the tickets, because these prices are just out of control for a regular-season game. people are spending about $630 just to go to a typical, regular-season game. is increased from $292 in 2003, that includes parking, food, and a souvenir. the regular, everyday fans are being priced out of these regular-season games. >> what is behind the rise in prices, nathaniel? >> so, it is a trend that economists have dubbed adriana kuch. people wanting to spend more on fun activities, live events, particularly post-pandemic. then we are seeing a lot of fees for these resale platforms like ticketmaster. we also have interesting trends

of stadiums being built with fewer seats, so you have fewer seats, higher demand, and that is just pushing up prices and putting these games out of reach. >> given how the dolphins did in the playoffs, nathaniel, i think i'm going to get some tickets to my couch for the next season. nathaniel meyerson, thank you so much for breaking the numbers down for us. stay with cnn news central, we are back in just a few minutes. to duckduckgo on all your devie

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in the hot seat, major tech ceos feasting off with lawmakers on capitol hill to explain what their platforms are and are not doing to keep kids safe. critics say it is not enough. we are