Life Inside Iran, Trump and Cuba, Fed Interest Rates

Iran lashed out after the killing of its security chief.

Drones and missiles flashed across the region and over the head of our correspondent in

Iraq.

Iranians crossing the border out of their country say life is unbearable.

I'm Michelle Martin, that's Steve Innscape, and this is up first from NPR News.

U.S. Secretary of State Marco Rubio talks of forcing a change in the leadership of Cuba.

There are a lot of trouble.

And the people in charge are in, they don't know how to fix it.

So they have to get new people in charge.

President Trump cut off oil to Cuba and now contends he can do whatever he wants.

What is the Trump administration planning?

Also the federal reserve means today to set interest rates.

The war in Iran has sent energy prices soaring and the job market has been weakening.

How does that affect their calculation?

Stay with us.

We've got the news you need to start your day.

Support for NPR and the following message come from RULA.

Ever thought about getting therapy but then talk yourself out of it?

It's too expensive, insurance confusion, or you don't have enough time.

RULA makes accessing quality mental health care affordable.

Find a great therapist in as little as five minutes.

RULA works with your insurance company, offering personalized cost estimates up front with

no hidden fees.

Go head to RULA.com.

That's RULA.com to find a therapist the easy way.

Several countries across the Middle East have been shooting down Iranian missiles and drones.

The barrage is seen as Iran's response to the killing of Iran's security chief and

the head of its paramilitary force.

Iran said it fired multiple warhead missiles at Tel Aviv.

This morning we have a glimpse of life inside Iran.

It comes from people who left their country crossing the border into neighboring Iraq.

NPR's Arzu Resvani met them at a border crossing.

Arzu, welcome.

Good to be with you, Steve.

What did you see?

I spent a few hours at the Haji Amran border crossing.

It's tucked in the mountains, which at this time of year are covered with snow.

As I was interviewing people, we spotted a couple of Iranian drones flying overhead into

Iraq.

Those are the cheap, noisy drones Iran's been launching at U.S. targets all over Iraq

in the region.

But beyond that, one of the most striking things I observed from my border visit was just

how terrified people were to speak.

You could see it in their eyes and you could hear it in what they chose not to say.

I spoke with one woman in her 60s coming from a border city in Iran.

She asked not to be named for fear of government and reprisal, even though she was no longer

any Iran.

And when I asked her about the war, she was really, really vague.

She spoke only about the core economy and avoided any talk about the war or the government.

And then she asked me to turn off my mic.

She burst into tears and told me that she wished the airstripes on her city had killed her.

But between the war and the security crackdown, life had just really become unbearable.

You mentioned a security crackdown.

What do you hear about that?

So there's been an intense internet blackout in Iran these last couple of weeks.

It's been very hard to reach people inside the country.

But those who do manage to get online go through Starlink, for example, describe seeing

many more checkpoints in their cities and towns.

They say security forces are checking phones.

They look for apps that help bypass the internet blackout.

They look through videos and text messages.

People say they've been getting text messages, presumably from the government, warning them

not to join crowds that might turn into protests.

There was one 40-year-old man who lives in a city in eastern Iran.

He asked me not to identify him for fear of government reprisal.

And he said in a voice memo that he has seen security forces abandon their stations and

move into a mosque and a sports stadium, which is not a common practice.

Those stations have been targets.

So it's really difficult to verify these accounts, I should note, but numerous people I've

spoken with in recent days have shared similar details from this crackdown.

And these are also accounts that match testimonies that many human rights groups are also compiling.

So a lot of suffering inside Iran.

And how is Iran trying to push that suffering out into its neighbors?

They have ramped up attacks in the last several hours.

Saudi Arabia, Kuwait, Qatar have intercepted Iranian missiles and drones in recent hours.

There were strikes in Israel overnight, including in Tel Aviv.

There are deaths reported there.

The Iran-backed group Hasbola in Lebanon launched rockets into Israel in the early morning.

And Israel has been hitting central Beirut.

I'm talking to you right now from Erbil in the Kurdistan region of Iraq.

Shortly before we started our conversation, there were sounds of large explosions in the distance.

There is a large consulate here that's been targeted, but it's really Iraq's capital city Baghdad

that's been getting hit hard from Iran-backed militias.

So the US Embassy there is under constant attack, and it just doesn't seem like this war

is slowing down.

If anything, it feels like it's intensifying.

And Pazar Zurazvani is in Erbil in the Kurdistan region of Iraq.

Arzuh, thanks so much.

You're welcome.

President Trump, apparently, is in an expansive mood.

In other words, he's talking again about expanding the United States.

Venezuela's team won a World Baseball Tournament last night, defeating Team USA,

and the President responded on social media by promoting the South American nation

as the 51st state if you can't beat him, join him, or make them join you.

The US recently deposed Venezuela's leader and appears to be dictating terms to the new one.

Trump has also been talking about taking over Cuba.

And there's a connection.

Cuba, depended on Venezuela and oil that the United States has stopped.

Cuba right now is just very bad shape.

They're talking to Marco.

And we'll be doing something with Cuba very soon.

Marco is Secretary of State Marco Rubio.

So what is the something Trump wants to do?

NPR White House correspondent Franco Ordoñez has been trying to read the clues.

Franco, good morning.

Good morning, Steve.

What's the President been saying, first of all?

Yeah, I mean, earlier this month, Trump raised the idea of a friendly takeover of Cuba,

you know, seemingly some kind of regime change.

The Secretary of State Marco Rubio has also been in talks with leaders in Havana

about opening up the government.

And actually Rubio yesterday at the White House spoke of both economic changes,

but also the need for shake up of Cuban leadership.

The bottom line is their economy doesn't work.

It's a non-functional economy.

It's an economy that has survived.

It's for 40, that revolution, it's not even a revolution.

That thing they have has survived on subsidies from the Soviet Union and now from Venezuela.

They don't get subsidies anymore.

So there are a lot of trouble.

And the people in charge are in, they don't know how to fix it.

And so they have to get new people in charge.

Now Rubio does say, however, that it is important to be realistic

and that Cuba doesn't need to change all at once.

Ah, interesting.

So what are some possible scenarios here?

Well, this week, actually, Steve is the 10-year anniversary of when former President Barack Obama

visited Cuba to celebrate his deal with Havana, that opened up relations between the two nations.

I called Mark Firestein, who is at the Obama White House,

and he told me he sees what's shaping up as some kind of Obama 2.0 deal.

And the difference, of course, is that Cuba is much more vulnerable now.

The United States has a lot more leverage.

But the contours of an agreement, I think, look a lot like what Obama and the Cubans agree

to 10 years ago, which was basically the Cubans opening up the economy,

releasing the political prisoners, pledging to ease oppression

and in turn, the United States lifting sanctions.

You know, at the time, Firestein said that the Cubans didn't go far enough,

and that has basically led them to this point today where they are very much more vulnerable.

So you can look back to that example, Franco, but Obama's agendas seem to have to do with democracy, human rights,

which are not things that President Trump has emphasized.

Yeah, I mean, that's definitely right.

But Rubio has cared about these issues a lot when it comes to Cuba.

He is the son of Cuba and immigrants, and he has long called for changes in regime in Cuba,

which, of course, is true of a lot of people in South Florida,

where it happens that the president lives.

Yeah, it is.

And Trump has talked very nostalgic about Cuba recently.

This is a big deal in South Florida, and Trump also has friends and advisors care about Cuba.

He's complimented the real estate.

You know, he's talked favorably about the political benefits he has from the community.

And at an event earlier this month celebrating the Major League Soccer Champions Inter Miami,

Trump actually turned to the co-owner of the team, who had him as his family's from Cuba.

And Trump said,

Moss will soon be able to go back to Cuba, and that they would celebrate soon.

And he also said, that would be a great day.

And PR White House correspondent Franco Adonis, Franco, thank you so much.

Thank you, Steve.

Policy makers from the Federal Reserve are meeting in Washington today amid darkening economic clouds.

The US and Israeli War with Iran has triggered a spike in energy prices,

and the US job market is showing more signs of weakness.

And PR Chief Economics correspondent Scott Horsley joins us now.

Good morning, Chief.

Good morning, Steve.

What makes this a challenging moment?

We talk all the time about the two jobs the Federal Reserve has to support the job market

and to keep inflation in check.

And right now both those jobs are looking really difficult.

You know, for a moment, it looked as if the labor market was starting to stabilize,

but we could have, ago, those hopes were kind of dashed when we got that February jobs report.

I would showed employers cut 92,000 jobs last month.

They've actually now cut jobs in three of the last six months.

Ordinarily, that would be a sign the Fed might want to consider lowering interest rates

to boost the economy, but it's really hard to do that when you've also got inflation

that is stubbornly high.

And now on top of that, you've got this energy shock triggered by the war with Iran.

I wonder, given that they try to look at longer-term trends and longer-term data,

how does a sudden spike in energy prices the last few days affect the Fed's calculation?

Well, you're right.

They generally don't give too much weight to a temporary moving gas prices

because of course gas prices go up and down a lot.

Right now, though, there are up a whole lot.

Diesel prices are up above $5 a gallon,

and Michael Pierce, the forecasting firm Oxford Economics, says those high-fuel prices

could start to spill over into the price of lots of other goods.

It's going to put big upward pressure on inflation in the near term.

At the same time, it's going to affect the real economy.

That rise in prices is going to risk-creen the pace of consumer spending.

The policy outlook this year, I think, has been completely scrambled by this new shock.

We've also seen a spike in the cost of fertilizer and jet fuel.

And what he knows, how long the war is going to last

or when we might see a resumption of normal oil tanker traffic through the trade of hormones?

Given all those unknowns, what do you think about interest rates?

Today, at least, the Fed is widely expected to just stand pat

and hold its benchmark interest rate steady as it did back in January.

But it might not be unanimous.

At the last meeting, two of the 12 policymakers voted to lower rates by a quarter point

because they were more concerned with the weakening job market

than they were about rising prices.

We'll see how that risk assessment may have shifted now, if at all,

since we've had that disappointing February jobs report

and two plus weeks of soaring prices at the gas pump.

How much longer is Jerome Powell going to be in this job?

To be determined, Powell's term as Fed Chairman was supposed to expire in May,

so he would have just one more meeting to oversee after this one.

But it's possible he's going to wind up serving a little bit longer.

That's because a key Republican Senator, Tom Tillis at North Carolina,

says he will block a vote on Trump's nominee to replace Powell, Kevin Worsh,

until the Justice Department drops its criminal investigation to the Fed.

Now, last week, a federal judge put the brakes on that probe,

saying it was part of an improper harassment campaign

to get the Fed to lower interest rates.

But the DOJ is not backing down, and Pierce says that means Powell

might get to stick around for a while.

That would be highly unusual, but then what's also unusual is

that ongoing criminal probe into the sitting federal reserve chair,

and I think he sees it as part of his mission

and part of his legacy in defending the independence of the federal reserve

from this political influence.

So for Powell's kept his own plans to himself,

but I'm sure he'll be asked about his timeline once again this afternoon.

And Pierce Scott Horsley, thanks so much.

You're welcome.

Before you go, we have a suggestion.

Actually a request.

Please rate and review up first on Spotify or Apple podcasts.

One listener recently told us that three stories is just right.

It provides just enough of a summary to decide what to research further.

All it takes a minute to review this podcast.

And it helps us keep this essential service going for everyone.

Also, we love reading your feedback.

Thanks.

And that's up first for this Wednesday, March 18th.

I'm Steve Inskeep.

And I'm Michelle Martin.

Today's episode of Up First was edited by Hannah Block.

We're back on Metzler, Rafael Nom,

Mohammed El Bardisi, and Ellis Wilkley.

And was produced by Ziyad Butch and Neadou Moss.

Our director is Christopher Thomas.

We get engineering support from Nisha Hainis

and our technical director's Carly Strange.

Our supervising producer is Michael Lipkin.

And we hope you'll join us again tomorrow.

This message comes from Midi Health.

Co-founders Joanna Strober and Dr. Kathleen Jordan

discuss why they started a virtual care platform

to empower and educate women in paramanopause and menopause.

Historically, paramanopause and menopause have been very stigmatizing.

So people haven't wanted to admit

that they're in paramanopause and menopause,

as though it was like embarrassing,

which is insane.

It's just something happening to your body.

So one of the things that we're trying to do

is destigmatize these topics.

Paramanopause and menopause are just women's health.

So we try to educate women all the time.

Maybe it's your hormones and we would like to help you.

Yeah, and I find women actually want to talk about it.

It's one of the things they always comment at Midi

is that they finally feel heard.

One of the ways that women find Midi

is actually from other women.

And I think it's meaningful.

Midi Health, committed to helping women in midlife

with paramanopause and menopause care.

Accessible via telehealth visits.

adjoinmidi.com

This message comes from Rosetta Stone.

Spring travel coming up.

Rosetta Stone has been the trusted leader

in language learning for over 30 years.

Ready to start learning a new language this spring?

Visit rosettastone.com slash NPR today.

This message comes from Capital One.

Capital One offers checking accounts

with no fees or minimums.

What's in your wallet?

Terms apply.

See capitalone.com slash bank for details.

Capital One NA member FDIC.