|
Presented by PhRMA: POLITICO's must-read briefing on what's driving the afternoon in Washington. | | | | |  | | By Eugene Daniels, Garrett Ross and Eli Okun | | | For the third-straight month, the inflation rate hit a 40-year peak — one even higher than experts had predicted, “indicating a worsening outlook for inflation and cementing the likelihood of substantial interest rate hikes this year,” CNBC’s Jeff Cox writes. — The breakdown: “The consumer price index for January, which measures the costs of dozens of everyday consumer goods, rose 7.5% compared with a year ago, the Labor Department reported Thursday. That compared with Dow Jones estimates of 7.2% for the closely watched inflation gauge. It was the highest reading since February 1982.” — The immediate context, via our Victoria Guida: “The worse number for both the Fed and the White House is that inflation rose 0.6 percent from December to January, because that gives us a better sense of what’s happening now rather than what was going on a year ago. That’s the same pace it grew the month before, meaning that these price spikes don’t seem to be slowing down consistently (there had been a noticeable drop in the previous couple of months, raising hopes that the trend would continue).” — Looking ahead, via NYT’s Jeanna Smialek: “Forecasters anticipate that inflation will come down meaningfully in 2022: Many expect it to finish the year closer to 3 percent. But economists regularly predicted that price gains would fade quickly in 2021, only to have those projections foiled as booming consumer demand for goods collided with roiled global supply chains that could not ramp up production fast enough.” — The Manchin reaction: In light of the new numbers, Sen. JOE MANCHIN (D-W.Va.) released a statement reiterating his concerns about inflation (“the threat of inflation is real,” and “the Administration must proceed with caution before adding more fuel to an economy already on fire”) and called into a West Virginia radio station to put one more nail in the coffin for President JOE BIDEN’s Build Back Better package. “Now’s not the time to be throwing caution to the wind, putting more trillions of dollars out,” Manchin told West Virginia MetroNews host Hoppy Kercheval. “Right now, we’re not in a financial position to do [it]. We’ve got to get our financial house in order.” Manchin also expressed an interest in raising the cap on income taxed for Social Security from $147,000 to $400,000, as Anthony Adragna writes for Congress Minutes. — The Biden reaction: In a statement this morning, President JOE BIDEN said the administration has “been using every tool at our disposal, and while today is a reminder that Americans’ budgets are being stretched in ways that create real stress at the kitchen table, there are also signs that we will make it through this challenge.” The president is expected to further address the issue in remarks later today. In both its talking points and in response to questions from Playbook about the new inflation numbers, the White House tried to sound an optimistic tone, pointing to outside forecasters who “expect inflation to subside pretty substantially by the end of 2022,” in the words of one White House official. “And part of that expectation as well is that there were going to be some pretty elevated inflation readings in the first part of the year, but that they would subside over time.” GAPS IN TRUMP’S JAN. 6 CALL LOGS — The House Jan. 6 select committee “has discovered gaps in official White House telephone logs from the day of the riot, finding few records of calls by President DONALD J. TRUMP from critical hours when investigators know that he was making them,” NYT’s Luke Broadwater, Jonathan Martin, Maggie Haberman and Michael Schmidt report. “Investigators have not uncovered evidence that any official records were tampered with or deleted, and it is well known that Mr. Trump used his personal cellphone, and those of his aides, routinely to talk with aides, congressional allies and outside confidants. But the sparse call records are the latest major obstacle to the panel’s central mission: recreating what Mr. Trump was doing behind closed doors during crucial moments of the assault on Congress by a mob of his supporters.” Speaking of missing White House documents … “Former President Donald Trump on Thursday denied a new report that he may have flushed official documents down a White House toilet while in office, rejecting the latest accusation of mishandling of presidential records.” (More from Quint Forgey) Good Thursday afternoon.
| | | | A message from PhRMA: Washington is talking about price setting of medicines, but it won’t stop insurers from shifting costs to you. And it will risk access to medicines and future cures. Instead, let’s cap your out-of-pocket costs, stop middlemen from pocketing your discounts and make insurance work for you. Let’s protect patients. It’s the right choice. Learn more. | | | AMERICA AND THE WORLD UKRAINE-RUSSIA LATEST — A confab between British and Russian diplomats this morning seems to have yielded little progress. Russian Foreign Minister SERGEY LAVROV compared the two-hour meeting to a conversation between a “mute person with a deaf person,” while UK Foreign Secretary LIZ TRUSS “reiterated Western warnings that an invasion of Ukraine would result in ‘a prolonged and drawn-out conflict,’” and called on Russia to pull back the troops it has amassed along the Ukrainian border, per NYT’s Anton Troianovski in Moscow. — What to watch today, via WSJ’s Matthew Luxmoore in Kyiv: Russian and Ukrainian negotiators are meeting in Berlin to discuss ways to resolve the crisis. — Also today: Russia began “the active phase” of 10-day, large-scale joint military drills across Belarus, writes NYT’s Ivan Nechepurenko. — And in Congress, efforts to address the situation appear to be stalled. CNN’s Manu Raju ( @mkraju ): “‘I think we have hit an impasse,’ Senate Foreign Relations Chairman BOB MENENDEZ just told me of the Russia sanctions bill. Says hangup is over secondary sanctions imposed on bank and over Nord Stream 2. Says they’re now thinking of a ‘different process to explore.’” PULLOUT FALLOUT — The U.S.’ Afghanistan withdrawal “was hampered by continuous appeals for help from an array of advocates including White House officials, members of Congress, veterans of the war, media outlets and even the Vatican,” Rear Adm. PETER VASELY said in sworn testimony for a U.S. Army investigation into a deadly suicide bombing at the Kabul airport, WaPo’s Dan Lamothe reports. Vasely “called the outreach a ‘distraction’ that ‘created competition for already stressed resources.’” THE AFGHANISTAN DILEMMA — Daniel Lippman reports that the S-3 Group, a top Washington lobbying shop, “has agreed to represent the U.S. parent company of a major Afghan telecom alleged by three former employees and four former senior Afghan government officials to have paid money and extended other favors to the Taliban as they fought a bloody insurgency over the last 20 years.” The lobbying firm’s decision, Lippman writes, “highlights the dilemma of how to engage with Afghanistan after the Taliban’s victory.” CONGRESS TOP-ED — House Assistant Speaker KATHERINE CLARK (D-Mass.) writes a very personal piece for the Boston Globe: “My miscarriage was crushing. Overturning Roe could make the ordeal even worse”: “If there were bounty hunters when I suffered a miscarriage, would my routine surgery have been readily available to me?”
| | | | BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we’ve got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don’t miss out on this influential global community. Subscribe now. | | | | | JUDICIARY SQUARE HOW BIDEN’S DECIDIN’ — AP’s Colleen Long reports that Biden “spent a recent flight aboard Air Force One reminiscing with lawmakers and aides about his start as a young lawyer in Delaware working as a public defender in the late 1960s. The flight from New York to Washington was short, and there wasn’t much time to explore the president’s brief time in the job during the civil rights era. But as Biden considers his first Supreme Court nominee, this lesser-known period in his biography could offer insight into the personal experience he brings to the decision.” — The breakdown of Biden’s already confirmed judicial appointments: “Nearly 30% of Biden’s nominees to the federal bench have been public defenders, 24% have been civil rights lawyers and 8% labor attorneys. By the end of his first year, Biden had won confirmation of 40 judges, the most since President Ronald Reagan. Of those, 80% are women and 53% are people of color, according to the White House.” — Holding Biden to his word — and moving a step further: “A group of Black female lawmakers on Thursday commended President Biden’s commitment to nominate a Black woman to the Supreme Court, but outlined the type of jurist they want to see elevated,” L.A. Times’ Nolan McCaskill reports. From the letter: It is “of utmost importance that the administration appoints a Black woman with a strong track record of advancing civil and constitutionally protected rights, and whose work has shown dedication to affirming the rights of our country’s most marginalized communities.” THE PANDEMIC LEFT BEHIND — As coronavirus precautions drop and the general public leaves behind many of the safeguards that once dominated pandemic life, there is concern that a particularly vulnerable portion of the population is being forgotten: “Up to 7 million immune-compromised Americans have been left behind in the nation’s wobbly efforts to get back to normal,” AP’s Lauran Neergaard reports . “A weak immune system simply can’t rev up to fight the virus after vaccination like a healthy one does. Not only do these fragile patients remain at high risk of severe illness and death from COVID-19, they can harbor lengthy infections that can help spark still more variants. SHIP THE SHOT — The CDC has told vaccine distributors that if shots for children younger than 5 receive the green light, “an initial 10 million doses are expected to be ready for shipment, with the first half of the batch available on Feb. 21 and the second on Feb. 25,” WaPo’s Amy Cheng and Annabelle Timsit report. DELIVERY DELAY — In November, the Biden administration and COVAX promised to deliver Johnson & Johnson Covid vaccines to Thailand, where they could be given to refugees. Erin Banco reports that the batch of shots still has yet to be delivered, and that the “group tapped to help distribute the doses could not get legal permission from the Thai government to do so.”
| | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | THE ECONOMY THE LATEST SUPPLY CHAIN HEADACHE — “The truck blockade by Canadians protesting the country’s COVID-19 restrictions is tightening the screws on the auto industry, forcing Ford, Toyota and General Motors to shut down plants or otherwise curtail production on both sides of the U.S.-Canada border,” AP’s Rob Gillies and Tom Krisher write in Toronto. POLICY CORNER PAY BUMP — Biden is planning to propose the biggest pay raise for federal employees in 20 years. “Federal employees and military service members would receive average raises of 4.6 percent next January under the budget President Biden will propose in March, marking what would be the workforce’s largest salary hike in two decades, according to senior officials at two federal agencies,” WaPo’s Lisa Rein reports. GREEN ARMY MEN — WaPo’s Michael Birnbaum and Tik Root take a look at the Army’s first-ever climate strategy, released this week. The details: “The plan aims to slash the Army’s emissions in half by 2030; electrify all noncombat vehicles by 2035 and develop electric combat vehicles by 2050; and train a generation of officers on how to prepare for a hotter, more chaotic world. It is part of a broader effort by the Biden administration to address climate change across government agencies, including at the Pentagon.” PLAYBOOKERS MEDIA MOVES — Nick Niedzwiadek is now a labor policy reporter at POLITICO. He previously was a breaking news reporter. … Jason Willick is joining WaPo as a staff columnist. He previously was an editorial writer and assistant editorial features editor for the WSJ. The announcement TRANSITIONS — Jamie Nielsen has launched Restoring America, a voter registration organization. He previously was digital fundraising director at the RNC. … Josh Richman is joining the Electronic Frontier Foundation as media relations director. He is currently deputy chief of staff and senior advisor to Rep. Eric Swalwell (D-Calif.). … Allie Nelson is now chief of staff at the Blockchain Association. She previously was director of operations for the National Cattlemen’s Beef Association and Public Lands Council. WELCOME TO THE WORLD — John Pence, CEO of Ace Specialties, which makes all of the American-made apparel and e-commerce products for WinRed, and is a former Trump campaign alum and nephew of former VP Mike Pence, and Giovanna Pence, a former Trump White House staffer who now works for KAConsulting, on Feb. 3 welcomed Jack Gregory Pence, who came in at 6 lbs, 15 oz. Instapic
| | | | A message from PhRMA:   Government price setting threatens patient access to medicines and innovation. Instead, let’s cap out-of-pocket costs and stop middlemen from pocketing discounts. Learn more. | | | | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our politics and policy newsletters | | Follow us | | | | |  |
