tv At This Hour With Kate Bolduan CNN July 28, 2022 8:00am-9:00am PDT
hello, everyone. i'm kate bolduan. we begin with new and mounting concerns about the u.s. economy. for the second straight quarter the u.s. economy shrank contracting a the an annual rate of 0 op.9%. soon we're going to hear from president biden directly about the latest on the economy and also the big news that major pieces of his agenda, which have been frozen, may be on the move again with a surprise deal between joe manchin and chuck
schumer. cnn will bring you the president's remarks when they begin. let's start with the new gdp report. with me is matt egan. walk us through the report, the numbers, what you see. >> so broadly consumers were still spending. it is a slowdown for sure but overall that was a positive contributor to gdp. on the other hand, government spending slowed down. when we look at where consumers are spending, it's an acceleration of what we've seen. we spent less on physical items. services, however, think airfare, which is why airports are so busy these days, hotels and restaurants, that really accelerated. business spending declined and inventories, which we have been hearing from a lot of retailers for sure but also other companies they are trying to move out their inventory, there has been a mismatch of what they have. that was reflected here, too. i think to put it simply, it is clearly showing a slowdown.
>> matt, this is -- you've written a lot about this. this is one of the big indicators that people look to in determining whether or not the economy is in a recession. the federal reserve chairman yesterday said he did not believe the u.s. economy is in a recession right now. so now what? >> clearly we are dealing with a slowdown at a minimum, after blockbuster growth last year. what's crazy is every single time since 1948 that you have back-to-back quarters of negative growth, you've had a recession every time. but that may not necessarily be the case this time. it probably premature to say it is the case. the first quarter was an anomaly. there were all these quirky reasons the gdp has been negative. >> it's been whacky since the pandemic. >> it's very hard to measure because we're in this very
unusual situation. the problem with calling this a recession, the jobs market is way too hot. unemployment is at 3.6%. that is historically low. it is far cry from the nearly 15% of april 2020. house of repres how do you have a recession when you don't have mass layoffs? some people define it as two straight quarters of negative growth with you that's not how the score keepers define it. they say it's significant decline in economic activity spread across the economy that lasts more than a few months. some economists are predicting positive growth for the third quarter. morgan stanley saying 2% growth in the third quarter. i think if that happens, that may quiet some recession fears. >> and you confuse us even further. >> the president's economic adviser brian dees was on with
jim sciutto last hour. listen to this. >> we are in transition. there's no doubt the economy is slowing and that is what most expected when coming off of an extremely strong and fast recovery last year, but all of the indications that we see right now are for an economy that's showing extraordinary resilience in the face of global challenges. >> what does an economy in transition mean to everyone without an economics degree? >> that's a great question. i think it means we probably won't be spending as much, job probably won't be as plentiful as they have been. we are still in this phase where job growth and demand for workers is very strong. there are 1.9 open jobs right now for every person looking. that's probably going to change. we're at practically 50-year lows for unemployment. we're at 3.6% and 3.5 is the low. whether that looks like 4% unemployment or something worse, we just don't know. but it is transitioning into
something that hasn't been -- money won't be flowing probably as much as it has been. it's changing. >> in the president's statement, matt, on the gdp report this morning, he said it's no surprise the economy is slowing down as the federal reserve acts to bring down inflation but as we face historic global challenges, we are on the right path. again, what do -- what's the next number? what's the next thing you need to look at to know exactly where the economy is or if we are on the right path? >> i think this all comes back to inflation, right. for so many months people thought inflation would be transitory. obviously it wasn't. it keeps going in the wrong direction. we need to see inflation -- >> and there's numbers and then there's -- the technical recession and if i feel i'm having a recession. >> exactly. some of this is semantics. they'll debate when a recession is, they'll not tell it when it actually happens. they'll wait for months before
we know that. we do know americans hate this economy. 64% of americans believe the u.s. economy is currently in a recession. that may not be the case but that's what people feel. >> don't tell me how to feel. >> exactly. that is because of the high cost of living. people haven't experienced anything like, this many of us, in our lifetimes and they're feeling it at the gas station, the grocery store and at the mall. until that improves, people are still going to dislike this economy. >> here's something we saw in the report that i think really speaks to this idea of what matters in your wallet but also what matters in terms of how you feel. we learned that personal income grew on a top line level but when adjusted for inflation, it decreased. when adjusted for inflation, you're actually bringing home less. that's the problem. even if you are making more, you're seeing less. >> it's good to see you guys. thank you very much. now to this, a blockbuster deal is set to shake up the airline
industry. jet blue agreed to buy spirit airlines for $3.8 billion. if the deal goes through, the combined company will become the fifth largest airline in the u.s. yesterday spirit pulled the plug on another deal to merge with front frontier airlines. >> still ahead, the biden administration frustrated about an offer to swap prisoners. that's next.
exclusively reported details on yesterday. the u.s. is offering to release a russian arms dealer imprisoned in the u.s. named vickor boot in exchange for brittney griner and former marine paul whalen. natasha, what are you hearing now? >> reporter: we are learning that the biden administration is deeply frustrated that russia has not responded in a substantive way to this offer that administration officials believed they would jump at of course because victor boot, an international arms smuggler is someone russia has wanted back on russian territory back since before he was even convicted here. he has been sentenced to 25 years in prison and it is a very asymmetrical proposal. the biden administration offered to swap boot.
brittney griner is accused of bringing in a very small amount of cannabis that she says was not even on purpose. so the fact that the administration has made this very significant proposal to the russians is something that they have not taken lightly and they are deeply frustrated that russia has not responded. john kirby, the national security spokesperson said that this is not a decision that was taken lightly, to make this public, the fact that they actually put this proposal on the table but that the biden administration felt it was very important to show the american people that president biden is doing all he can to bring these americans home. >> ultimately we came down on the side that it was important to put this out there, to let the american people know how serious president biden takes his responsibility to bring americans home when they've opinion unjustly detained and we thought it was important for the world to know how seriously we take that responsibility. >> the next step will happen in the coming days between the secretary of state, antony
blinken and sergey lavrov where they will try to convince the russians this is a good deal. president biden just wrapping up a call with china's president, the two leaders speaking for more than two hours amid growing tension over a potential trip to taiwan by speaker of the house nancy pelosi. what are you hearing about this call now? >> reporter: this call between president biden and xi jinping laste lasted about two hours. heading into the call, white house officials had acknowledged there are several points of tension that would likely arise. that includes taiwan and china's aggression in the south china sea. additionally russia's war in ukraine and the economic competition between the u.s. and china. officials said part of these types of conversations is trying
to keep that open dialogue with one of america's greatest competitors. but this call also comes as that possible trip from speaker of the house nancy pelosi to taiwan is looming large over the discussions. the call had been scheduled -- or they had been planning on having this call for some time but really pelosi's visit has emerged as a flash point as china has issued a strong denunciation about the prospect of pelosi visiting the self-governing island. just last week president biden revealed that the u.s. military does not believe it's an appropriate time for her to be traveling at this moment and chinese has vowed a forceful response if she were to travel. we're still awaiting to hear how exactly these discussions played out as there is that incredibly politically sensitive situation of taiwan on the table. >> thank you for that. joining me is susan glasser, a staff writer at the new yorker and cnn contributor jim doherty,
former moscow bureau chief. good to see you both. susan, can i ask i about china, a phone call lasting more than two hours, what do you think comes from a conversation like that considering all the cross current and tension with the china relationship? >> well, i think in a way it's important to cut through a lot of the surround sound noise and for the two leaders to directly hear from each other and try to understand what are the potential consequences that we're talking about. the one thing that i think people are most worried about right now is an escalating spiral, if you will, right. china threatens to take action if pelosi goes on the trip, the u.s. is forced to respond. what are the actions that china is specifically talking about? i heard increasing concern from senior u.s. officials that taiwan -- that we're overdue for a crisis, that it may come sooner than expected, not necessarily the full-on military
confrontation. but xi jinping is facing a crucial party congress and renewal of his time in leadership next year and this plays very strongly into his domestic goal of essentially restoring china as a nationalist. and i think that he seems to be intent on provoking a confrontation if he can but pelosi and biden are now in a very awkward situation. >> and what do you think of the administration coming forward publicly about this deal that they say they've laid on the table. >> you know, susan used the word awkward. and i think this is awkward for the administration. i mean, the coming out, which is really very different from the way anything like this has been handled in the past. usually if you have a deal to swap prisoners, it's all done behind the scenes, it's all very quiet and then the announcement
is made by both sides. here you have the united states coming out and saying, hey, we offered a deal, you know, an unbeatable deal to russia and silence from russia. so i think now maybe the administration felt that they actually did have the works of a deal or they wanted to kind of pressure russia perhaps. but i think there's also a big domestic component, which is right now we have a lot of families, not only brittney griner but so many people, paul whalen, et cetera, who have been saying please help to save our relatives who are held behind bars in various countries. that's an enormous domestic political pressure on biden. and i think they did want to show to the american people, as we just heard a couple of minutes ago, american people in the world that biden takes this seriously, he's going to try do what he can and a warning to countries, don't try to take our
citizens because we'll do something. but right now i think it is an uncomfortable position for biden and the russians can play this out. there's no particular pressure on president putin to do this deal, but victor boot has been in prison for years and there's no public pressure in russia because this isn't a big story in russia. >> >> so interesting. and susan, prisoner swaps -- i want to give the take of two people, jason, who spent 544 days in an iranian prison and trevor reed who was held in russia for nearly three years. both of their releases involved a swap. here what's they say. >> there's absolutely no evidence that says that doing these kinds of deals increases the likelihood of more hostage taking. but at the end of the day, until
we have deterrent measures in place and we're able to punish and hold hostage takers accountable, it not going to stop. they do it because they get away with it. it's unsavory to think about the trade of prisoners for americans who are innocent and wrongfully detained for people who have been convicted of american courts. sometimes that's the only option. >> if that's the argument that this incentivized takes hostages and wrongfully detaining them, i think the evidence shows they're going who do that anyway, even if they don't receive what they're asking for. >> a big question is what does that mean within the administration and what do you think? >> certainly to your point about inside the administration, there was a debate and disagreement about making this offer. the justice department worked incredibly hard. it was a coup for them to have successfully arrested him in the first place. he was practically a one-man
crime spree, fueling civil wars, laei leading to terrible kw consequences. the u.s. was not eager to see this deal proposed. it's very awkward that the administration made this offer in june. so to me i agree that going public now suggests that russia is not biting on the deal for whatever reason. but to the big are picture point, is vladimir putin encouraged by the united states making an offer like this? vladimir putin is using an elevated hostage taking on a massive scale right now. it not just unfortunately individual americans like brittney griner who have fallen prey to putin's war in ukraine. the entire country of ukraine and indeed the world are being held hostage. europe is being held hostage by vladimir putin because of skyrocketing energy prices. countries around the global south, millions of people are
potentially victim to him holing ukrainian grain hostage and creating an artificial food crisis. so unfortunately i don't think that putin is going to be deterred as seeing blackmail and hostage taking. he's become essentially an outlaw regime. >> coming up for us, cnn has just learned that multiple trump cabinet members now have been interviewed by the january 6th committee or are in talks to do so. the latest developments on who they are and the panel's growing interest in the 25th amendment. that's next. under budget too! and i get seven days to love e it or my money back... i loveve it! i thought online meant no one to help me, but susan from carvana had all the answers. shshe didn't try to upsell me. not once, because they're not salespeople! what are you...? guess who just checked in on me? mom... susan from carvana! [laughs] we'll drive you happy at carvana.
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developing right now, sources tell cnn the january 6th committee has interviewed donald trump's former treasury secretary steven mnuchin and mick mulvaney is set to testify later today. and the committee is negotiating with mike pompeo. his deposition could happen soon. the panel is clearly expanding its interest into conversations the cabinet may have had about
removing the president from office after january 6th. what more are you learning about all this? >> we're hearing that the house select committee is clearly building out what happened in that crucial set of visors in the trump administration, the cabinet and the moments and january 6th, what they thought about the president and whether they considered the 25th amendment, removing donald trump from office to try and steady the democracy. so the news today from my colleagues on capitol hill is that steven mnuchin, the secretary of the treasury has spoken to the house select committee. we know that the house committee is negotiating for a potential interview with john ratcliffe, the director of national intelligence, another cabinet level position. there may be classification issues around what they can say to him. they are in talks with getting him to sit down and say what he knew. we also are expecting the former secretary of state, mike pompeo, to come in this week and have a closed door interview with the house select committee.
we know from reporting from reporter john carl previously that pompeo was in touch with steven mnuchin and and the special envoy to ireland did resign in protest that day and probably would be in touch with people at that level. there's a lot going on here. the house is really looking into this idea of what was going on in the cabinet and they've already spoken to gene scalia, the labor secretary, who wrote donald trump a memo having him to call a cabinet meeting after january 6th when they were all panicking. we'll have to see what emerges with this new testimony. >> thank you so much for laying that all out for us. joining me is mark short, former chief of staff to vice president mike pence. mark was recently under subpoena. he testified before a grand jury in the justice department's
investigation into january 6th. it's good to see you. thanks for coming in. >> thanks for having me. >> you have mulvaney, steven mnuchin, pompeo, what topic, discussions and the 25th amendment. you've been asked about this a lot since leaving the administration. how serious can you say those conversations were among the cabinet about that? >> kate, i don't recall there being any serious conversation about that. in fact, i commend to your viewers to read the open letter to congress as to why he felt he was pressured on january 6th and do something beyond his constitutional authority and did not bow to that pressure and was likewise not go to bow to pressure from nancy pelosi and others. the communication will show you nancy pelosi had commissioned her own commission about a year
before that, not to resolve political differences, only mental incapacity. and the reality is there was ten days left in the administration. there was a political employ and further, you know, when they designed the 25th amendment, it has higher standards, higher hurdles than even impeachment does, whereas impeachment requires a simple majority in the house or senate, this requires approval by a cabinet, plus a super majority in the house and senate. that wasn't happening in the administration. this was really just a political ploy by nancy pelosi and democrats in congress to trite try to put pressure to exert this and was never going anywhere in our white house. >> i wouldn't say any discussion would be a political employ on the part of cabinet members
discussing this. are you surprised by the number of cabinet members engaging with the committee? do you think it suggests something has changed since they've seen what the committee has been doing, seeing the hearings? >> i don't really know the context of the engagement and it's a little bit risky to speculate about it. it could simply be that the members are coming in and saying we didn't discuss the 25th amendment and that's a dead end conversation. >> it's true. this does not suggest what substance they would be discussing. we know the former vp is not speaking with the january 6th committee. but would mike pence talk to the justice department like you did? >> well, kate, i'm going to leave that to the vice president and his attorney. i think there are differences between, you know, grand jury investigations and what is required by law versus what is required as far as a congressional invitation.
but i think that mike pence is not -- there's nothing that he's truly hidden here. he wrote an open letter to the american people before january 6th as to why he reached the conclusion he did that there was no extraordinary power afforded to the vice president to overturn the results of an election, nor would republican want kamala harris to have that authority in 2024. and so i don't really see what the purpose of that would be. but, again, i think i need to leave that to him and his attorney. >> absolute. let's talk about policy. you were also the legislateive affairs director for the white house. this surprise deal between joe manchin and chuck schumer for climate, energy and health care proposals all in the name of fighting inflation is what they say. republicans don't like it. very clearly we've heard that already. what does it mean for this white house, marc? >> it's not surprising joe manchin is supporting tax increases. joe manchin said i'm propposing
more spending because of the inflation that has been created. after you've had this record inflation, record high gas prices and now as of today have officially entered a recession, now is when the democrats want to -- >> not according to everybody. >> it's a unique revision definition of a recession. two straight quarters of negative gdp has always been the traditional definition. i'm going to accept we're now in a recession and that's the day the democrats put forward a massive $500 billion tax increase? if we were already anticipating a landslide election for republicans this fall, this only will expedite this result. >> you think it going to hurt them, not help them? it not going to help joe biden if parts of his agenda are unfrozen that were held up? larry somers said this morning what this bill, this package does, there's less demand, more
supply and it directs better bargaining for lower price when is it comes to prescription drugs. those are the things involved in reducing inflation and this bill is fighting inflation. >> kate, i think the reality is that we have now entered into a recession and you have interest rates increasing, which is going to decrease inflation. but the last thing you want do is a massive tax increase. i've been there when republicans faced a re negative environment and what you basically tell members, we haven't done enough. let's do something else. it's a false notion. the voters are not looking for a massive tax increase. when they hear about the taxes. and hiring more irs agents to go
after americans? i don't think that's going to be popular. >> far lower on the scale of things that impact americans' lives, though you are someone who is maybe one of the few who can answer to this. there's a new memoir coming out from jared kushner. the reporting is that kushner goes particularly hard on one of trump's former chiefs of staff, john kelly. and according to reporting, kelly was viewed as a bully within the white house who once shoved his wife, ivanka trump, out of his way after a volatile oval office meeting. john kelly denies the allegation. you may be one of the few people with a clear window into something like this. does that sound right? >> i don't have firsthand knowledge of any incident with ivanka. i did serve with john kelly. i think a lot of him. it's hard to find a family that has sacrificed more than his
family. he's an officer and a gentleman. john kelly sided with the intelligence community in the recommendation not to grant jared a security clearance and i think that's probably the root of a lot of this. it would be unfathomable for me to think john kelly would have pushed any woman, much less ivanka. >> it's good to see you, marc. we ran the range today. coming up, a major reversal from senator joe manchin, striking a major climate and economic deal. what's in it, what happened and what is the whiplash? we'll be rigight back.
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a major reversal for senator joe manchin announcing a surprise deal with democratic leader chuck schumer on a bill that aims to lower health care costs, combat climate change and reduce the deficit. this could be a big breakthrough for president biden's new economic agenda. manu, what's changed? >> reporter: i just got off a call and he said nothing has change. it's widely reported he made it clear privately he would not go forward with climate and tax
provisions in any sort of deal and that led to so much backlash with democrats over his concerns for inflation. he said he never made that a red line for him. he said he simply indicated to chuck schumer he wanted to continue talking and agreed to move forward because he believes it the best deal he can get at this time. i asked him specifically about the issue of inflation. he had said repeatedly he did not want to drive up or inflame inflation in any way. i said what's gives you reason to believe this bill in fact would drive down inflation as he's promising? he was less clear about that but he did say his advisers, he's been speaking and consulting with them have essentially made the case it would drive down inflation. the deal with include $368 billion of climate provisions and a 15% corporate minimum tax. and it a loophole on the issue,
and it would extend affordable care act subsidies for three years that are expiring this year and give medicare the power for the first time to negotiate prescription drug prices. everybody in the capitol was caught off guard by this, including republicans, who had agreed to move forward on a separate piece of legislation on semiconductor chips but were caught off guard when this deal was announced yesterday. less listen. >> i think everybody got surprised by i think representations that had been made by the democrats about this deal and i think there was a certain amount of people getting blindsided not only on our side but on the democrats' side. >> reporter: did the leader play this properly? >> you'll have to chat with him about that. >> reporter: was there any dissent in the room just now in the caucus meeting about this manchin-schumer deal?
>> absolutely not. people feel this is a real turning point for the country. >> now, the catch there is that the person who was not at that caucus meeting this morning, senator sinema, there's a big question about whether she will support this bill. her spokesperson tells me she is still reviewing this text and right now has no comment. >> interesting. and obviously nothing is a sure thing until votes are counted but what are the prospects here? >> reporter: it's still uncertain not just sinema but it is going through a review process by the senate parliamentarian to make sure this bill can pass under straight party lines they don't knee republican support. they need all democrats to get on board in the senate. even if they get this through the senate as soon as next week, what will happen in the house? it's an open question. there are been democrats, particularly from the northeastern districts who have been concerned about state and local tax deductions, limits on
the so-called salt deductions. they want those increased to help constituents hit by higher taxes because of the gop tax law. they have made that a red line, that issue of salt. it's unclear about whether or not they will do that here or whether or not they will concede and agree to support this bill on final passage. >> thank you. coming up for us, a family suing the sesame place theme park for $25 million alleging racacial discrimination. details next. save $500 on the sleep numbebr 360 c4 smart bed queen now only $1,299. lowest price e ever.
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the baltimore family is filing a $25 million lawsuit now against sesame place. they allege racial discrimination. this comes after a viral video from another family appearing to show a character interacting only with white visitors. brynn gingras has more. >> we have the family of the viral video that you showed your viewers and we another family that filed this class action civil lawsuit. they're asking for $25 million from sesame place and the parent company. there's a lot in the lawsuit that they allege and it's pretty close to the same story. they essentially said they went to the park outside of philadelphia. their 5-year-old daughter was ignored during a meet and greet
scenario and in the lawsuit they actually claim four characters. think, they can't name their characters as far as the characters, john doe four. they said that the company knew that these characters held racial bias. so that's interesting to know, however they don't provide and evidence to back up the claim. another thing to point out is they are basically asking for anyone who might have experienced some discrimination who is a black family at that park within the last two years or so, three years to come forward. it's a class action lawsuit, yet no other family is named in that class action lawsuit and very notable is the family that we all have known about in regards to that viral video. they were not a part of this. i talked to a representative for that family and they didn't know this lawsuit would be filed until an hour before it happened and quite honestly they're distancing themselves. they just sent a press release, and it's important to note that they're distancing themselves.
they say we believe it's a special moment for america to would effectuate change with claims that are now viable or for interests that are purely self-serving. two different families asking for very different things. we'll follow this one for sure. let's turn to this. beyonce fans are furious about the srenaissance families and they're begging people to not listen and not share it. lisa france has details on this. lisa, what happened? >> it appears that the album, at least according to twitter went on sale early in europe. some people in different countries were producing photos which they said was the album that they said was in stores and it was leaked reportedly on the internet and people started just going crazy saying do not share this. some people kind of made a little bit of a joke about it. they said beyonce lost her job
which was referencing the song, the first single off the new album and they said don't share it because she'll need the money cl we know she doesn't really. at the crux of it, people are upset because the beyonce album is released you did get ready for everyone to talking about it on social media and a million think pieces about it and by having these files linked which appear to be the album and people believe that it is having not heard the album, we can't say 100% for sure and then that takes away trt specialness. >> there will still be a lot of think pieces and people diving into what's beyond every song before. can i ask you about sean mendes. he's canceling the entire rest of his tour to focus his mental health. that is a huge move. >> he's joined a grow list of high-profile gen z-ers who are putting their mental health
first. he said i started this tour excited after a long break due to the pandemic and the reality is i was not at all ready for how difficult touring would be after this time away. it has become more clear to take the time i've never taken personally to come back stronger. like simone biles and naomi osaka, we have to keep in mind this is a celebrity and has the privilege and the opportunity to be able to step away because think, he makes a great deal of money and it is also important for someone in his position to do something like this and take this stand because it lets people his age and people older, lets all of us know that our mental health has suffered during this pandemic and so it's important that you take care of that. >> it's great you point out both of those things at once. i appreciate it, lisa. good to see you. >> good to see you, too, kate. >> moments from now we'll hear from president biden at the white house and we'll bring you
the president's remarks live as soon as they begin. i'm kate bolduan. "inside politics with john king" starts after this break. i'm jonathan lawson here to tell you about life insurance through the colonial penn program. if you're age 50 to 85, and looking buy life insurance on a fixed budget, remember the three ps. wh are the three ps? the three ps of life surance on a fixed budget are price, price, and price. a price you can afford, a price that can't increase, and a price that fits your budget. i'm 54, what's my price? you can get coverage for $9.95 a month. i'm 65 and take medications. what's my price? also $9.95 a month. i just turned 80, what's my price? $9.95 a month for you too.
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♪ ♪ ♪ ♪ hello and welcome to "inside politics." i'm john king in washington. thank you for sharing a very, very busy news day with us. the u.s. economy shrunk again. another bad number stirs more talk about the "r" word, meaning recession. plus a breakthrough on the biden agenda. a big breakthrough this hour. the president of the united states speaks live from the white house this after joe manchin gives a thumbs up for a deal that includes big money
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