Playbook PM: Delta muddies the economic picture

From: POLITICO Playbook - Thursday Jul 29,2021 05:10 pm
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Playbook PM

By Eli Okun and Garrett Ross

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HAPPENING TODAY — The bill to bolster supplemental funding for the Capitol Police, National Guard and Afghan special immigrant visas is expected to get a vote in the Senate this afternoon.

HOW BADLY WILL DELTA SCREW THINGS UP? That’s the question looming over Washington these days, as the Covid-19 variant’s voracious march across the country has injected an optimistic recovery summer with a fresh dose of uncertainty. Fed Chair JEROME POWELL isn’t too worried, and neither health nor economic experts expect delta to torpedo the country like the virus did last year. But everybody’s mostly in wait-and-see mode. (Or get-your-damn-shots mode.)

This morning, we got a few new pieces of evidence indicating how the economy’s holding up so far. The overall takeaway: not spectacular, but moving in the right direction.

— ON GDP: “U.S. economic growth rose at 6.5% pace in second quarter; GDP returns to pre-pandemic levels,” L.A. Times: “U.S. economic growth in the second quarter wasn’t the rip-roaring spring as many had projected earlier, but the continuing recovery from the pandemic was still very strong and more than enough to lift the nation’s total output above where it was before Covid-19 hit …

“That was up from a 6.3% pace in the first quarter, but well shy of [the roughly] 8% that analysts were expecting … Higher inflation also curtailed real GDP. Still, the latest quarterly performance was among the strongest in years and kept the economy on track to record the fastest growth this year since 1984.”

— ON UNEMPLOYMENT: “U.S. jobless claims down 24,000 to 400,000 as economy recovers,” AP: “[It’s] another sign that the job market continues to recover rapidly from the coronavirus recession. … The weekly applications have fallen more or less steadily this year — from a peak of 904,000 … But they remain high by historic standards.”

BUT, BUT, BUT: Ben White takes a step back, and finds that experts are starting to worry about the future: “Some economists have already begun to ease back on forecasts for the rest of this year and 2022 as the Delta coronavirus variant surges, inflation spikes, supply chain issues persist and employers complain about a dire lack of available workers. Even the massive spending plans that Biden is trying to push through Congress … wouldn’t provide a short-term jolt for the economy heading into the 2022 election year.”

And if things do get worse (or, for many Americans, even if they don’t), at least one type of help is … no longer on the way.

— ON EVICTIONS: The White House announced this morning that it wanted to extend the CDC’s eviction moratorium past this weekend, but can’t because of a recent Supreme Court ruling. In a statement, the White House said President JOE BIDEN instead urged Congress to extend the moratorium, and had asked HUD, USDA and the VA to extend theirs through the end of September.

Jeff Stein (@JStein_WaPo): “After weeks of silence, the White House is now saying -- just 3 days before the eviction moratorium expires -- that they want Congress to extend it but can't themselves. My reporting suggests no senior officials in the WH were pushing for an extension even before the court ruling.”

Good Thursday afternoon.

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CONGRESS

THE RECONCILIATION BILL — “Schumer announces he has votes for moving $3.5T package,” by Marianne LeVine: “Senate Majority Leader CHUCK SCHUMER said Thursday that all 50 Democrats will vote to move forward on the party’s $3.5 trillion social spending proposal. …

“While all 50 Democratic senators support beginning the process of passing the $3.5 trillion bill, the final price tag on the bill is not yet clear. Sen. KYRSTEN SINEMA (D-Ariz.) said Wednesday that while she will vote to move forward, she does not support legislation that costs $3.5 trillion, angering progressives in her party. Sen. JON TESTER (D-Mont.), another moderate Democrat, said last week that while he was committed to advancing the bill, he reserved the right to do ‘whatever the hell I want’ on final passage.”

— MANCHIN TEA LEAVES … CNN’s Manu Raju (@mkraju): “A day after Kyrsten Sinema said she opposes a $3.5 trillion price tag, [Sen. JOE] MANCHIN suggested he’s not ruling it out. ‘I’m keeping an open mind … I’m not saying whether I can or I can’t. I’m looking at everything out of respect for my colleagues,’ he said.”

INFRASTRUCTURE YEAR — Senate Minority Leader MITCH MCCONNELL sounded pretty positive on the bipartisan infrastructure deal on the floor of the Senate this morning: “It’s guaranteed to be the kind of legislation that no member on either side of the aisle will think is perfect, but it’s an important basic duty of government. I’m glad to see these discussions making progress.” He also said he expected a “robust bipartisan floor process” — i.e., it could take a while.

FIRST IN PLAYBOOK — Immigration Hub, People’s Action, Service Employees International Union and Voto Latino sent a memo Wednesday to congressional Democrats warning that they have to deliver on immigration in the massive reconciliation spending bill the party is putting together. “Failure to fulfill this basic campaign promise will depress base turnout, particularly among Latinos, leave critical swing votes on the table, and result in widespread losses for Democrats,” they wrote. The full memo

THE HOUSE’S MASK WARS — “GOP lawmaker challenges McCarthy over ‘bulls---’ mask mandate enforcement,” by Olivia Beavers: “‘We need to lead,’ [Rep. CHIP] ROY, a member of the conservative House Freedom Caucus, told [House Minority Leader KEVIN] MCCARTHY during a brief meeting of GOP lawmakers in a Capitol reception room … McCarthy replied to a frustrated Roy that his plan is to win back the majority in 2022 and become speaker.”

HISTORY LESSON — “Senators Aim To Add More Notable Women To Capitol's Sculpture Collection,” NPR

RACIAL RECKONING — “Senate Bill Aims to Create National Database of Restrictive Property Covenants,” by WSJ’s Joshua Jamerson: “Lawmakers’ measure seeks to research provisions attached to housing deeds that made it harder for Black people in many cities to own property.”

POLITICS ROUNDUP

IT’S BIDEN’S PARTY NOW — “Pro-Sanders group rebranding into ‘pragmatic progressives,’” by AP’s Will Weissert: “Rather than insisting on ‘Medicare for All’ … or the climate-change-fighting Green New Deal, Our Revolution is focusing on the more modest alternatives endorsed by President Joe Biden. Those include expanding eligibility for the existing Medicare program and curtailing federal subsidies for fossil fuel companies. …

“Despite the group’s change in emphasis, it remains deeply engaged in progressive politics. Its Ohio chapter has contacted more than 190,000 voters [for NINA TURNER] ahead of next week’s Democratic primary.”

— WaPo’s Dave Weigel (@daveweigel): “OurRev joins Democracy for America (HOWARD DEAN) and Progressive Democrats of America (DENNIS KUCINICH ) as projects set up to keep a left-wing presidential candidate’s operation intact, then evolved into an all-purpose progressive groups.”

2022 WATCH — Bad news for Dems: Former Missouri Gov. JAY NIXON announced he won’t run for Senate. His statement

— ICYMI: “Conor Lamb preparing to launch Senate run in August,” by Roll Call’s Bridget Bowman

 

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THE WHITE HOUSE

VEEP CONCERNS — “Harris’s bad polls trigger Democratic worries,” by The Hill’s Hanna Trudo and Amie Parnes: “Six months into office, polls indicate [VP KAMALA] HARRIS is viewed less favorably than President Biden. She has also made some tactical missteps outside of the White House that Democrats say show she hasn’t quite yet found her bearings. … Harris’s polling numbers are raising questions about how she might be used [as a midterms surrogate] as Democrats seek to hold on to slim majorities in the House and Senate.”

BEYOND THE BELTWAY

THE VOTING RIGHTS PUSH — “Texas Dems to huddle with Clintons, Abrams as they bid to regain momentum,” by Zach Montellaro

MEANWHILE, IN GEORGIA … “Georgia Republicans take first step to Fulton elections takeover,” Atlanta Journal-Constitution

THE PANDEMIC’S LONG TAIL — “‘They need to be recognized’: How grocery workers’ fight for hazard pay will impact the economy long-term,” by Alexander Nieves in Los Angeles: “Unions and anti-poverty activists have argued for years that many American workers are paid too little to live on and have pushed for higher minimum wages, among other policies. Business groups have argued that paying higher wages would force them to cut the number of workers they could employ. In some ways, the pandemic provided a chance to see which side might be right; while the results are somewhat mixed, it’s clear that the lives of workers … did improve markedly even from the short-term increases.”

PANDEMIC

PLAYBOOK METRO SECTION — WaPo’s @JulieZauzmer: “News: DC will again require masks in all indoor settings, starting Saturday. Mayor [MURIEL] BOWSER’s order will apply to everyone over age 2, vaccinated or unvaccinated.” More on that from WaPo

A TURNING POINT IN MORE WAYS THAN ONE — “Charlie Kirk’s pro-Trump youth group stokes vaccine resistance as covid surges again,” by WaPo’s Isaac Stanley-Becker: “[T]he communications by Turning Point USA and its affiliate, Turning Point Action, reflect the increasingly hard line taken by the group … Its dire warnings about a government-backed inoculation program — now a major theme of its Facebook ads, which have been viewed millions of times — illustrate how the Trump-allied group is capitalizing on the stark polarization around vaccine policy.

“Experts say the messages, many of which steer online audiences to donation pages, threaten to undermine vaccine confidence among young people … ANDREW KOLVET, a spokesman for [CHARLIE] KIRK, said the activist is only opposed to vaccine mandates, adding, ‘If anywhere my client is represented as anti-vaccine that will be taken very seriously. This is a pro-freedom movement, not “anti-vax.”’”

POLICY CORNER

CLIMATE FILES — “Exxon sting ensnares think tanks with climate credentials,” by E&E News’ Corbin Hiar: “The May 2018 hearing before the Republican-led Foreign Affairs Committee — and other recent scholarships from CSIS and Brookings — has come under new scrutiny following the release last month of a secretly recorded video in which Exxon lobbyist KEITH MCCOY touted the company’s connections to the centrist research groups. … Rep. RO KHANNA, the chairman of the House Oversight Subcommittee on Environment, is planning to look into Exxon’s ties to think tanks during a broader probe into fossil fuel industry misinformation efforts.”

“Biden wants to turn America’s auto fleet electric. It’s harder than it seems,” by WaPo’s Juliet Eilperin and Dino Grandoni: “When it comes to meeting President Biden’s climate goals, the math is clear: Half of all cars and SUVs sold in 2030 need to be electric. Next week, the president, major carmakers and the nation’s largest auto union plan to promise to reach at least 40 percent by then — potentially rising to the 50 percent mark with generous federal investment.”

THE SHIFTING LANDSCAPE — “The West Embraces State Subsidies, a Policy Throwback, to Counter China,” by WSJ’s Greg Ip: “Chip-manufacturing subsidies are the most prominent of a range of interventions Western governments are rushing out to promote industries they deem strategic, from electric-car batteries to pharmaceuticals. Such interventions have increased sharply in both the U.S. and Europe in the past decade … Collectively, this represents an embrace of ‘industrial policy,’ the idea that governments should direct resources to industries critical to the national interest rather than leaving things to the market.”

 

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AMERICA AND THE WORLD

LATEST BURST OF SANCTIONS — “U.S. Plans Sanctions Against Iran’s Drones and Guided Missiles,” by WSJ’s Ian Talley in Washington and Benoit Faucon in London: “The effort comes as Western security officials say they see those capabilities as a more immediate danger to Middle East stability than Iran’s nuclear-enrichment and ballistic-missile programs. … Because the U.S. views many of the existing missile and terror sanctions as separate from the nuclear deal, the U.S. expansion of sanctions against Iran’s drone and precision-guided missile programs shouldn’t be misinterpreted as an effort to prod Tehran on the stalled nuclear talks, the senior official said.”

FOR YOUR RADAR — “Concerns grow about the plight of a former U.S. Marine imprisoned in Russia,” by NYT’s Julian Barnes: “PAUL N. WHELAN, the former U.S. Marine sentenced in Russia to 16 years in prison on espionage charges, has not been able to contact his family or the U.S. Embassy since July 4, and relatives and members of Congress are increasingly concerned about his well-being. … [Rep. HALEY] STEVENS (D-Mich.) and family members of both Mr. Whelan and TREVOR REED, another former Marine sentenced to prison in Russia, are set to hold a news conference to talk about the prison conditions and push for a new congressional resolution calling for their release.”

MISCELLANY

AN ELEPHANT NEVER FORGETS — “Wayne and Susan LaPierre Ordered Their Hunted Elephants Turned Into Stools and a Trashcan,” by Mike Spies in The Trace and The New Yorker: “Records obtained by The Trace and The New Yorker show that Susan leveraged the LaPierres’ status to secretly ship animal trophies from their safari to the U.S., where the couple received free taxidermy work. New York Attorney General LETITIA JAMES, who has regulatory authority over the NRA, is currently seeking to dissolve the nonprofit for a range of alleged abuses, including a disregard for internal controls designed to prevent self-dealing and corruption by its executives. … The new records appear to confirm those allegations. … The episode represents a rare instance in which the gun group’s embattled chief executive is captured, on paper, unambiguously violating NRA rules.”

PLAYBOOKERS

SPOTTED: Transportation Secretary Pete Buttigieg and Sens. Jon Ossoff (D-Ga.), Amy Klobuchar (D-Minn.), Angus King (I-Maine) and Dick Durbin (D-Ill.) coming out of a restaurant in the Yards Park on Wednesday night.

— Spectrum News’ @evamckend: “Spotted on the Hill outside of Dirksen! It’s [Carole] from Tiger King. She says she can’t tell me [who] she’s meeting with. She says to a staffer, ‘When you called me up, I thought this guy can’t really work for the Senate.’” With pic

TRANSITIONS — Nic Jordan is now the first-ever executive director for Asian Americans & Pacific Islanders Rising & Empowering (ASPIRE) PAC. He most recently was chief of staff for Rep. Gil Cisneros (D-Calif.). … Bryan Wood is now a director on the global public policy team at BlackRock. He most recently was senior policy adviser and counsel for the SEC. … Liz Lopez is now VP of public affairs at Constellation Brands. She most recently was in-house counsel and senior director of economic development at YWCA USA.

WELCOME TO THE WORLD — Kori Schulman, SVP at the Obama Foundation and an Obama White House alum, and Paul Kendrick, executive director of Rust Belt Rising and co-author of “Nine Days: The Race to Save Martin Luther King Jr.’s Life and Win the 1960 Election,” welcomed Elly Hope Kendrick on July 22. She came in at 6 lbs, 11 oz.

 

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