Iran Negotiations Drag, New Inflation Report, Sexual Abuse at Elite School

"Negotiations to end the war in Iran and reopen the Strait of Hormuz are dragging on, and that may be Iran's strategy." Iranian media's tracking President Trump's falling popularity, how much of the midterm elections influencing Iran's negotiating tactics? "I'm Leyla Faudid, that's Amartina's, and this is up first from NPR News." New data about the cost of living in the U.S. comes out this week, it is expected to be rising faster than wages, what can the federal reserve do about it? Plus a new report reveals decades of sexual misconduct that enleaped art school in Michigan. Some 70 allegations of sexual abuse against students by nearly 50 adults from the 1950s to the 2010s. "How does this happen? It's such a prestigious institution. Stay with us, we've got the news you need to start your day." Iran has laid out tough conditions for the U.S. to reopen the Strait of Hormuz, which may mean the talks drag on much longer. Some experts say that could be a deliberate strategy to prolong negotiations so that President Trump goes into midterm elections even more unpopular than polls show he already is. "To understand this thinking better, we're joined by NPR's Hediel El-Shalchi in Istanbul. Good morning." "Good morning." What is Iran saying it wants in order to make a deal to reopen the Strait of Hormuz? "We know that the Secretary of Iran's Supreme National Security Council issued a statement over the weekend saying that Iran would only open the Strait of Hormuz, that key global waterway. If the U.S. lifted its naval blockade as well as sanctions, he said that the U.S. military must withdraw from Iran, pay it reparations for war damages, release frozen Iranian assets, and its attacks. Now in the deal itself that Iran is currently negotiating with Oman, Iran has banned any U.S. or Israeli ships from moving through the Strait and says that Iran will charge a fee and impose fines of up to 20 percent of the cargo value if those conditions are broken. And the White House has yet to comment on those Iranian demands. "Now these conditions just several of them sound like something the U.S. just would never agree to. What's Iran's strategy here?" "Well, the conversation inside Iran is very much about President Trump's vulnerability ahead of the midterms. Iran is very aware of the U.S. political discourse. In Iranian media tracks, Trump's polling rates, it discusses how the Democratic Party's bases shifting. For example, a news agency closely tied to the Islamic Revolutionary Guard published an article entitled "The Iran War and the Start of Trump's Political Decline Outlining Trump's Drop in Popularity" and the dilemma he faces if he continues the war. I spoke to Osla Aydin Tashbush, a fellow at the Brookings Institution who's been following the talks. He says that Iran wants to make clear to Trump that even if they can't defeat the U.S. militarily, they have other ways. "They can drag this out, that they are resilient, and therefore they want to have a stronger hand than they normally would in Hormuz negotiations." And so like you said, Iran is keeping those demands as maximalist as possible and trying to push any nuclear talks further into the future. Iran has said maybe up to four months from now, even. And that could force Trump to go into midterms with no Iranian deal, a weakened economy, and an angry base that disapproves of the war. Could this backfire, though, for Iran? Playing this long game doesn't come without risk. The U.S. has dealt Iran major blows and infrastructure and military, and if Iran doesn't strike a deal with the U.S. soon, it can risk even more internal unrest as the economy continues to fail in Iran. On Sunday, Trump said to Axios, "We are low-keying it and compared it all to a chess game." He said that the U.S. was watching Iran's huge inflation. But Aidan Tashbash says that Iran and the U.S. have been thinking about each other for half a century and know each other's Achilles heel. And for Iran, there's President. The Iran hostage crisis of 1979 essentially caused Jimmy Carter the presidency. "Iran wants to use this time, use their leverage, but also the midterm calendar for a stronger agreement that establishes their sovereignty over Hormuz." Trump, however, she says, has not been studying Iran. She says his administration has a disdain for Washington experts and policymakers. People who would have probably told Trump not to go to war. And PR's Hediel El-Shalchi in Istanbul, thank you Hediel. You're welcome. We're going to get some new information this week about the cost of living. It's likely to confirm what most people already know, gasoline and groceries are more expensive than they'd like. And that wouldn't be so bad if wages were keeping up with inflation, but for most people, they are not. And PR, Scott Horsley is here with a preview of this week's economic data. Good morning, Scott. Good morning, Lila. Let's start with that inflation report, which comes out on Wednesday. What's the expectation there? The report is expected to show that consumer prices in July were up about 3.4 percent from a year ago. That would be a slightly smaller annual increase than we saw in June. But look, inflation is still uncomfortably high. Kevin Hassek, who runs the National Economic Council at the White House, acknowledged that pain point in an interview this weekend with CNN's State of the Union. I go to the grocery store, I do the shop and I keep it, I have prices every week and there's stuff like the price of beef that's still really, really high and very problematic for people. And we still got a lot of work to do. And now the job market is also showing some signs of weakness. Last week we learned that employers cut 23,000 jobs in July and more than a quarter million people dropped out of the workforce last month. Employers are not having to pay as much to attract workers these days. The federal reserve has long promised to bring inflation under control, but it's still above the Fed's target of 2 percent. The Fed is now in a tricky spot. Its usual tool for fighting inflation is to raise interest rates. But that doesn't do a lot to lower the price of gasoline, which is because of the war with the Iran. The Federal Reserve is just over $4 a gallon. It has come down in recent days, but it's still about a buck a gallon higher than it was when the U.S. started this war. At its last meeting in July, the Fed kept its benchmark interest rates steady. Investors were kind of expecting a rate increase at the next Fed meeting in September, but that's now not as clear with the job market looking a little shake here. Trump has repeatedly said he wants the Fed to lower interest rates, given what's happening with inflation. How likely is that? Well, it doesn't look very likely in the near term unless the job market weakens more. Here's the thing, while the Fed set short term interest rates, longer term borrowing costs are generally set by the bond market. Those rates have been going up, not down. The average rate on a 30-year mortgage has climbed to nearly 6.7 percent. That's a real drag on the housing market. Home sales were down in June. They're also likely to look weak. Speaking of the Federal Reserve, President Trump is trying again to fire one of its board members. What's he doing now? Yeah, Trump originally tried to fire Fed Governor Lisa Cook last year. His attack dog, William Pooldey, had accused Cook of mortgage fraud, although Cook denies any wrongdoing. And so far, courts have allowed her to remain at the Fed. Even the Supreme Court, which is given this President, Rod Latitude, to fire other government officials at the Fed is a special case. The central bank is designed to be insulated from political pressure so it can make tough economic decisions. But Trump's not giving up. Last week, the White House sent Cook a letter demanding that she answer those mortgage fraud allegations. Her attorney says the allegations are baseless and he promised to keep fighting to protect her job. And P.R. Scott Horsley, thank you, Scott. You're welcome. Convicted sex offender Jeffrey Epstein allegedly found some of his earliest victims at an elite arts school in Michigan, interlocking center for the arts. The report shows that the abuse did not start or end with Epstein. And a warning for the next few minutes, you'll hear a detailed description of sexual abuse. And P.R. Ava Berger has read that report and spoken to a victim and joins me now. Good morning, Ava. Good morning, Ava. I remember the allegations that surfaced about Epstein and this school. What's happening now? Well, it goes much deeper than most people might have thought. An independent report has revealed decades of sexual misconduct two years ago interlocking hired and outside law firm to look into allegations of abuse that was prompted by a former student coming forward with an allegation from the 1970s. The numbers are staggering, Laila, some 70 allegations of sexual abuse. And students by nearly 50 adults from the 1950s to the 2010s. None of those adults still work at interlocking and 17 of them are dead. Interlocking says that today the school has extensive safety measures to protect students. But the big question is still there, Laila. How could this happen? This is a school that is prestigious with alums like Chapel Rhone and Josh Groban. The report's findings offer a sum clues. In many cases, it says adults were able to meet alone with students. At the same time, the children at the school had limited communication with their families. They were vulnerable because of their age, sexual identities, and lack of experience. And some were scared to report their abuse. I mean, those number 70 alleged victims, 50 adults that may have been involved, you spoke to one of the victims, right? Ava, what did he tell you? Yeah, he spoke to Paul Bush. He's sharing his experience publicly for the first time with MPR. He attended the boarding school starting in 2004. Two months after he turned 16, he was sexually abused by his ballet teacher. Bush told me that he was at the teacher's house with another student when the teacher reached into his pants and molested him under a blanket. I mean, my heart was like beating out of his chest and I was, I think that's when I was really like, I froze. He spent 21 years reckoning with the abuse at the school, a place that was supposed to be safe for him. Bush's experience reflects some of those same themes from the report. He was living away from his parents. He said he wanted more than anything to be a professional dancer and he revered that same teacher who harmed him. When interlocking released the report, they named that teacher, Thomas Clawer. He's the only living staff member that interlocking named who's accused of misconduct. And that's because he pleaded guilty. According to court records obtained by MPR, Clawer pleaded guilty to attempted fourth degree criminal sexual conduct, a misdemeanor and was sentenced to 90 days in jail. He was added to a sex offender registry and interlocking fired him. Did Paul Bush say that he got the support that he needed from the school at the time and what did he say about this report that's coming out now? Well, Bush went on to spend two more years at the school and he said he never received counseling and doesn't remember anyone from the school asking if he was okay. Because of that, he said the report and the school's response to it. It's just not enough for the victims. They get to do the story. They get to edit and then they get to present it and then they get to say case closed. That is completely unacceptable because guess what? My life is still open. Interlocking wouldn't speak specifically to Bush's case, but they apologize for the harm that community members experienced. As for Thomas Clawer, the man who pleaded guilty to abusing Bush, he was teaching youth ballet as recently as last month according to social media posts. Clawer did not respond to our requests for comment. Wow, thank you for that reporting, Eva. We really appreciate it. Thank you, Laila. You can read more about that story on npr.org. We have one more story before you go. 50 years ago, Congress set out to protect coal miners from black lung disease. Today, it's back at rates not seen in half a century. These guys are being treated like disposable widgets, not human beings. And we're watching them die right before our eyes. Why coal miners in Appalachia are getting sicker faster. Listen now to the Sunday story right here in the up first podcast. And that's a first for Monday, August 10th. I'm Laila Faldon. And I'm Amy Martinez. Today's episode of up first was edited by Ali Schweitzer, Arzu Resvani, Miguel Macias, Cara Plutoni, and Merit Kennedy. It was produced by Ziyad Budge and Milton Guevara. Our director is Christopher Thomas. We get engineering support from Nisha Hainas. Our technical director is Zach Coleman. Join us again tomorrow. [MUSIC PLAYING]