00:00Peace talks may be happening, but so are the airstrikes.
00:04The U.S. hits Iran again, and the conflict takes another turn.
00:08Plus, inflation is back above 4%, and President Trump says that's actually good news for Americans.
00:15And New York is still buzzing this morning.
00:17The Knicks staged the biggest comeback in NBA Finals history.
00:23The stories that matter, clear and credible, from across the country to around the world.
00:30These are your unbiased updates from Straight Arrow.
00:35Good morning, I'm Craig DeGrelli.
00:37We begin in the Middle East, where the United States and Iran traded another round of strikes overnight,
00:43pushing the two sides closer to a wider conflict, just days after President Trump said a peace deal could be
00:50within reach.
00:50The U.S. military fired Tomahawk cruise missiles and carried out a second night of attacks inside Iran,
00:56targeting surveillance sites, communication systems, and air defense positions.
01:02Explosions were reported across several parts of Iran, including near the Strait of Hormuz,
01:06the strategic waterway at the center of the conflict.
01:09Iran responded by claiming it targeted U.S. military assets across the region, including in Bahrain and Kuwait.
01:17Bahrain says its air defenses intercepted multiple drones overnight.
01:22And Jordan says it shot down missiles headed toward an area that houses American troops.
01:28The attacks also briefly shut down Kuwaiti airspace, forcing commercial flights to reroute across the region.
01:35Defense Secretary Pete Hegseth, speaking in Cuba Wednesday,
01:39made clear the airstrikes are meant to increase pressure on Tehran, not ease it.
01:44President Trump, he's willing to go back and fight as necessary, but has given Iran an open hand to make
01:51this deal.
01:51It's right there. They have that chance. They're choosing to play games. They're choosing to tap.
01:56If they want to tap, then the president will turn to the War Department.
02:00If we need to negotiate with bombs, we'll negotiate with bombs.
02:03And we're very good at it. Nobody better in the world.
02:06And again, so we're in lockstep with the White House, in lockstep with the negotiating team
02:11to make sure we set the conditions. And the targets tonight are meant to do that.
02:14The remarks came after President Trump accused Iran of taking too long to reach a deal
02:20and warned Tehran it would pay the price if negotiations continue to stall.
02:25Iran says it's still open to talks, but continues to refuse U.S. demands
02:30that it give up its stockpile of enriched uranium,
02:32and now says the U.S. attacks are a flagrant violation of international law
02:37that has rendered the ceasefire meaningless.
02:40Now to a growing fight over national security, surveillance,
02:44and President Trump's choice to temporarily lead the nation's intelligence agencies.
02:49With a key spying program set to expire tomorrow,
02:53Trump is doubling down on his decision to install federal housing chief Bill Pulte
02:57as acting director of national intelligence.
03:00The president pushed back Wednesday against critics in both parties,
03:04accusing Democrats of holding national security hostage
03:07and confirming that Pulte will take over the office next week,
03:11while the search continues for a permanent nominee.
03:14In a post on Truth Social, Trump also said he wants Pulte to begin downsizing
03:19the office of the director of national intelligence and return staff to their home agencies.
03:24The controversy is now threatening the future of Section 702 of FISA,
03:29a surveillance program that allows U.S. intelligence agencies
03:32to collect communications from foreign targets overseas.
03:36Congressional leaders from both parties have warned that if the law expires Friday,
03:41investigators could lose access to a tool they say has helped disrupt terrorist plots
03:46and track foreign threats.
03:48It's important that that program does not go dark on Friday when it expires,
03:51because just understand, FISA has been used time and time again to stop terrorist attacks here
03:58on our homeland, on American soil, to prevent terrorist attacks.
04:03And that's a critical, critical tool that we need to renew.
04:07Democrats say the problem isn't FISA, it's Pulte.
04:11House Intelligence Democrats are demanding a full security review of Pulte,
04:15writing in a letter to Trump Wednesday,
04:17quote, never has a person with so little experience or understanding
04:21had at their fingertips the sources and methods of the intelligence community.
04:26And then Donald Trump, as he often does, tosses a hand grenade
04:30into those sensitive negotiations
04:34by elevating Bill Pulte as the director of national intelligence,
04:50Republican leaders are now trying to pass a short-term extension
04:54to keep the program alive, while Trump chooses a permanent intelligence chief.
04:59One of the world's most famous billionaires spent hours on Capitol Hill Wednesday
05:03answering questions about his past ties to Jeffrey Epstein.
05:07Microsoft co-founder Bill Gates sat for a closed-door interview
05:11with the House Oversight Committee
05:13as lawmakers continued digging into the government's handling
05:16of the Epstein investigation
05:18and the powerful people who associated with the convicted sex offender.
05:22Before the hearing, Gates released a statement
05:25acknowledging his relations with Epstein and the fallout that followed,
05:29quote,
05:29In the work I do, reputation is the basis for developing partnerships that save lives.
05:35Meeting with Epstein was a grave error in judgment and put this work at risk.
05:40Gates says he met with Epstein several times before cutting ties in 2014.
05:45He also revealed that Epstein learned about his extramarital affairs
05:49and later tried to use that information against Gates and pull him back into his web.
05:53Based on what has been released in the files,
05:57Epstein was working to use information about my infidelities
06:00in addition to many lies that he layered on top to pressure me to re-engage with him.
06:06Gates told lawmakers he never witnessed criminal conduct by Epstein
06:10and said he never visited Epstein's private ranch or Florida home.
06:15The hearing is part of a broader congressional investigation into Epstein and his associates.
06:19For the first time in more than three years, inflation is back above 4 percent.
06:24And President Trump insists he's not worried.
06:27New numbers from the Labor Department show consumer prices rose 4.2 percent in May,
06:33with higher energy costs continuing to push up the cost of living.
06:36The report comes as the war with Iran continues to disrupt global energy markets
06:42and keep pressure on oil prices.
06:44When asked about the inflation spike Wednesday,
06:46the president offered a surprising response.
06:49Are you concerned, Mr. President, about the latest inflation number which came out this morning?
06:54Could that be a hit?
06:54No, I love it.
06:55The numbers were great.
06:57You know what I really love?
06:58I love the inflation.
06:59You know why?
07:00Because as soon as this war is over, you know, I can say it now.
07:05Something you didn't know.
07:05Do you know we've been taking out millions of barrels of oil?
07:10Nobody knows it.
07:11You know who doesn't know about it?
07:13Iran until right now.
07:14While gas prices have eased somewhat over the past month,
07:19economists say higher energy costs are still filtering through the economy.
07:23That means Americans could continue to feel the impact at the gas pump,
07:27the grocery store, and on monthly utility bills.
07:29The inflation report also complicates the outlook for interest rates,
07:33with some investors now betting the Federal Reserve could raise borrowing costs later this year
07:38if price pressures persist.
07:41The city that never sleeps is still wide awake this morning.
07:45The New York Knicks are one win away from an NBA title
07:48after pulling off the biggest comeback in finals history.
07:52The Knicks looked dead in the water early.
07:54They trailed the San Antonio Spurs 76-49 at halftime of the critical Game 4.
08:01But New York kept coming.
08:03The Knicks erased the deficit over the final quarter and a half.
08:06And with the game on the line, Jalen Brunson drove the lane looking for the winner.
08:11His shot rattled off the rim, but O.G. Ananobi was right there for the tip-in with two seconds
08:17left.
08:18The Knicks completed the stunning rally and beat the Spurs 107-106.
08:24The scene at Madison Square Garden was exactly what you'd expect.
08:27Fans erupted inside the arena, and thousands flooded the streets outside
08:32to celebrate a win that will go down in Knicks history.
08:35Now New York heads to San Antonio with a chance to clinch its first NBA championship since 1973.
08:43Finally this morning, Washington may be deeply divided, but for one night a year,
08:48Republicans and Democrats settled their differences the old-fashioned way on the baseball field.
08:53The annual congressional baseball game brought lawmakers together Wednesday night to raise money for charity.
08:59The Republicans did more than show up.
09:01They rolled to an 11-2 win over their Democratic rivals, extending their winning streak to six straight years.
09:08Florida Congressman Greg Stubbe threw a complete game for the GOP,
09:12while Texas Congressman Jake Elzey and Utah Congressman Blake Moore helped lead the offense.
09:18Thousands of staffers, family members, and fans packed National Park for the annual tradition.
09:23And win or lose, the biggest winner may have been the charities.
09:26Listen to this. Organizers say this year's game raised more than $3 million for groups including
09:31the Boys and Girls Club of Greater Washington and the U.S. Capitol Police Memorial Fund.
09:37All right, before we head out, here's what we're tracking today.
09:39The latest weekly Jobless Claims Report is out this morning,
09:42offering another snapshot of the labor market as the Fed prepares for its first meeting under Chairman Kevin Warsh.
09:49At 11, First Lady Melania Trump launches Fostering the Future Accounts,
09:54a new financial program aimed at helping young people aging out of foster care.
09:59At noon, Freddie Mac releases its weekly Mortgage Rate Report,
10:03another closely watched indicator for homebuyers and the housing market.
10:07No noise, no sides, just the story.
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10:16We give you facts first and the news straight.
10:19Those of your unbiased updates for this Thursday, we'll see you back here tomorrow, Friday.
10:23We love that.
10:24For all of us here at Straight Arrow, I'm Craig DeGrelli.
10:27Have a great day.
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