Playbook PM: Trump-backed Senate hopeful in trouble

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Nov 22, 2021 View in browser
 
Playbook PM

By Garrett Ross and Eli Okun

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SIREN IN PA SENATE RACE — SEAN PARNELL, the DONALD TRUMP-backed Pennsylvania Senate candidate, "lost his battle for shared custody of his three children after his estranged wife accused him of physical and verbal abuse, a ruling likely to deal a devastating setback to his campaign," the Philly Inquirer's Jonathan Tamari reports. "A judge in Butler County has awarded Parnell's wife, LAURIE SNELL, primary physical custody and sole legal custody of their three children, according to a portion of a ruling made public Monday. A docket entry for the ruling said the judge found Snell to be 'the more credible witness.' … His allies had hoped a favorable ruling in the custody case would help discredit the abuse accusations that he had firmly denied under oath."

Flashback: Tara reported on Nov. 9: "One adviser to the campaign said they believe Parnell can remain a viable candidate as long as he keeps custody of his children, which the judge in the case will decide in a matter of weeks. A loss in the custody battle would be difficult to withstand politically, the adviser added."

POWELL RETURNS — President JOE BIDEN said this morning that he would reappoint JEROME POWELL to chair the Federal Reserve, spurning liberals who rallied behind LAEL BRAINARD for the post.

From our colleague Victoria Guida: "Powell — a Republican and a Trump appointee — is expected to win confirmation with bipartisan backing, driven by his record in heading off a financial crisis at the onset of the pandemic and steering the economy through the crippling recession that followed. But he'll face intense scrutiny from some Democrats such as Sen. ELIZABETH WARREN and Rep. ALEXANDRIA OCASIO-CORTEZ for overseeing a rollback in Wall Street rules, an issue that has sharply divided progressives over whether he deserves a second term, and over a trading scandal that forced two top Fed officials to resign."

In a nod to the progressive wing, Biden also said he would nominate Brainard as vice chair of the central bank. "Fundamentally, if we want to continue to build on the economic success of this year we need stability and independence at the Federal Reserve — and I have full confidence after their trial by fire over the last 20 months that Chair Powell and Dr. Brainard will provide the strong leadership our country needs," Biden said in a statement released by the White House.

But Powell's second term will bring a new challenge, WSJ's Greg Ip writes: "Over his first term in office, Jerome Powell became arguably the most dovish chairman in the Federal Reserve's modern history, giving priority to full employment in an era in which inflation seemed extinct. In his second term he may have to execute the reverse: giving priority to inflation at the risk of sacrificing jobs. The pivot could be painful for both Mr. Powell and President Biden, who reappointed him in part on his dovish record, and reflects the substantial reordering of economic conditions in just the past year."

Powell's confirmation should sail through with enough Republican support — overriding opposition from Warren and fellow Democratic Sens. JEFF MERKLEY and SHELDON WHITEHOUSE, who have all said they would not vote for Powell. (Warren issued a statement confirming that she would oppose Powell but support Brainard.)

More to come: There are three more open spots on the Fed board that Biden needs to fill, offering him a further opportunity to put his stamp on the central bank.

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REPLACING LEAHY — Rep. PETER WELCH (D-Vt.) announced this morning that he would run for retiring Sen. PATRICK LEAHY's seat. "Should he win the Senate seat, Welch would follow in the footsteps of [BERNIE SANDERS ], who also rose from the House to the Senate when former Sen. JIM JEFFORDS retired in 2007," VTDigger's Sarah Mearhoff writes. "Already on Monday morning, Sanders put his political weight behind Welch, announcing his endorsement of Welch's Senate run. Pointing to Welch's 14 years in the House, Sanders said Welch 'has the knowledge and experience to hit the ground running' in the Senate."

Good Monday afternoon.

BEZOS' BIG GIFT TO BARACK — Puck's Teddy Schleifer has the scoop on an eye-popping $100 million donation that JEFF BEZOS recently sent to the Obama Foundation. "I'm told the $100 million was midwifed by JAY CARNEY, Bezos' political sherpa and the former Obama press secretary. Carney ran point for Bezos, and Obama eventually spoke directly with the Amazon C.E.O. earlier this year," Schleifer writes. "The gift, the largest single donation ever made to the Foundation, has no restrictions on its use. But it is very common, and increasingly controversial, for major donors to be granted some naming honor in return for a donation of that size."

 

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THE PANDEMIC

MANDATE UPDATE — Biden's vaccine mandate for federal workers seems to be working. "Around 95 percent of the 3.5 million federal employees covered by President Joe Biden's vaccine mandate for government workers have complied with the requirement ahead of its Monday deadline, according to the White House," Rebecca Rainey reports. "Agency-specific data on their staff's compliance with the mandate will be released on Wednesday by the Office of Management and Budget, the senior administration official said."

COUNTERING THE HEALTH WORKER SHORTAGE — VP KAMALA HARRIS is set to announce an investment of $1.5 billion from the administration for the ongoing health care worker shortage across the country, AP's Alexandra Jaffe reports.

THE HOLIDAY SPIKE — As Americans begin traveling for the holidays with Thanksgiving later this week, coronavirus cases are creeping back up. "Nationally, case levels remain well below those seen in early September, when summer infections peaked, and are below those seen last Thanksgiving," NYT's Mitch Smith writes. "But conditions are worsening rapidly, and this will not be the post-pandemic Thanksgiving that Americans had hoped for. More than 90,000 cases are being reported each day, comparable to early August, and more than 30 states are seeing sustained upticks in infections."

POLICY CORNER

HEADS UP — The Biden administration is "preparing to announce a release of oil from the nation's Strategic Petroleum Reserve in concert with several other countries as soon as Tuesday, according to people familiar with the plan," Bloomberg reports . "The move, likely in conjunction with India, Japan and South Korea, would be an unprecedented effort by major oil consumers to tame prices after OPEC+ countries rebuffed U.S. calls to significantly boost production."

THIS IS AN INTERVENTION — The Justice Department "intervened in former President Donald Trump's lawsuit against Facebook to defend the constitutionality of Section 230, an internet communications law, according to court filings," USA Today's Matthew Brown reports. "The Justice Department's intervention holds that the government has an 'unconditional right to intervene to defend the statute' as it is always allowed in cases where a law's constitutionality is at issue."

 

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JAN. 6 AND ITS AFTERMATH

HOW MUCH WORSE IT COULD HAVE BEEN — "An Indiana man charged with carrying a loaded firearm to the Capitol on Jan. 6 told investigators that if he had found Speaker NANCY PELOSI, 'you'd be here for another reason,' according to court documents posted over the weekend," Kyle Cheney writes. "MARK MAZZA, 56, is the latest of about half a dozen Jan. 6 defendants charged with bringing a gun to the Capitol."

BEYOND THE BELTWAY

CUOMO LATEST — The New York State Assembly released its eight-month impeachment investigation into former Gov. ANDREW CUOMO, which "bolsters the findings of Attorney General TISH JAMES' probe into allegations of sexual harassment," Bill Mahoney, Anna Gronewold, and Shannon Young report . Further, the report "concludes that the Cuomo administration manipulated data on deaths of nursing home residents during the pandemic, with the goal of combating criticisms over his decision-making. And the report provides more details in its conclusion that Cuomo's memoir 'American Crisis: Leadership Lessons from the COVID-19 Pandemic,' relied on the use of state staff who did not volunteer their time."

MEGATREND — U.S. home sales rose in October, marking a significant bump, WSJ's Nicole Friedman reports. "Existing-home sales increased 0.8% in October from the prior month to a seasonally adjusted annual rate of 6.34 million, the highest pace since January, the National Association of Realtors said Monday. October sales fell 5.8% from a year earlier. Existing-home sales are on track to surpass six million this year, which would be the strongest annual pace since 2006, said LAWRENCE YUN, NAR's chief economist."

 

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PLAYBOOKERS

PLAYBOOK METRO SECTION — Metro announced today that the current reduced rail service will remain through the end of the year as the update of older railcars is being delayed due to the global supply chain strain. The announcement

MEDIA MOVE — Jonathan Guyer is joining Vox as senior foreign policy writer. He previously was a managing editor at The American Prospect. The announcement

TRANSITIONS — Michael Harris is now a congressional and legislative affairs specialist at the U.S. Fish and Wildlife Service. He previously was a Senior Policy Advisor and Appropriations Associate for Rep. Debbie Wasserman Schultz (D-Fla.). … Sean Floyd is joining Scarlet Oak Strategies as a senior adviser. He most recently was COS to the senior adviser for D.C. Mayor Muriel Bowser and is an Obama campaign alum.

WELCOME TO THE WORLD — Hallie Beasley, VP at The Herald Group, and Dane Beasley, a business insurance consultant at Fisher Brown Bottrell Insurance, welcomed Shapard "Shap" Rush Beasley on Oct. 5. Pic

 

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California Today: Why gas prices are so high

After breaking a record earlier this month, fuel prices have kept climbing.
Author Headshot

By Soumya Karlamangla

California Today, Writer

It's Monday. California's sky-high gas prices keep breaking records. Plus, nearly one-fifth of the world's giant sequoias have been killed by California's recent fires.

A gas station on Bryant Street in San Francisco had the highest price in the city last week at $5.85 per gallon.Jason Henry for The New York Times

For so many of us, the upcoming holiday season offers a moment of normalcy in what has been a long and lonely pandemic.

With the protection of Covid-19 vaccines, extended families are planning to reunite after being apart for months, if not years. Couples are meeting their in-laws for the first time, as well as their siblings' new babies.

One in five Californians is expected to travel 50 miles or more this Thanksgiving, a major jump from the depths of the pandemic last year, according to AAA.

But over the past few weeks, those dreamy itineraries have been complicated by soaring fuel prices.

In California, the average cost of a gallon of gas is currently $4.71, the highest in the nation. A few weeks ago, the prices here broke a record that was set in 2012 and have only continued to inch up since.

The coronavirus deserves much of the blame. Gas production fell when demand plummeted last year amid stay-at-home orders, and it hasn't caught up as commuters and tourists return.

Nationwide, the average cost of a gallon of fuel is $3.41, compared with $2.11 at the same time last year. In other words, our much-anticipated road trips have gotten roughly 50 percent more expensive.

Over the weekend, my colleagues published a story about Americans who are canceling vacations and rejiggering their budgets to cope with pain at the pump.

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Keith Crawford, 57, filling up his Kia Optima last week, said he had started buying smaller amounts of gas twice a week to soften the blow to his bank account.Jason Henry for The New York Times

Kellen Browning, a New York Times reporter based in San Francisco, interviewed drivers in the city's NoPa neighborhood who were lined up at an Arco charging $4.49 a gallon. In other parts of the city, prices have reached as high as $5.85.

Bay Area residents told Browning that they had started targeting certain gas stations to try to save a few bucks, or filled up small amounts at a time to soften the blow to their bank accounts.

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Browning himself avoids filling gas in the city when he can. He knows there are cheaper stations along I-80 on the way to Davis, where he often travels to visit his family.

"I try to time it so that my tank is close to empty near one of those places," he told me. "When my colleagues on the East Coast were reporting on people's frustration with gas prices that were between $3.50 and $4, that sounded like an absolute steal."

Last week, President Biden asked the Federal Trade Commission to investigate whether oil and gas companies were engaging in "illegal conduct" that was driving up prices. Some polling data links the president's low approval ratings to high fuel costs.

Here in California, hefty taxes have long made gas prices the highest in the nation. But fuel got even more expensive after an atmospheric storm pummeled Northern California last month.

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The heavy rains inundated oil refineries with water, which affected gas production in the region, The Los Angeles Times reported. The subsequent cost increases then trickled south to the rest of the state.

Browning told me that some Californians he spoke to said the high gas prices had made them more willing to buy electric cars. Others said it had persuaded them to do all their holiday shopping online.

Some blamed Gov. Gavin Newsom, OPEC, inflation or Biden for their significantly lighter wallets after filling up their tanks.

"But overall, I would say the theme was a general resigned frustration and confusion about why they had to pay so much," Browning said. "At this point, if I can find gas under $4.50 per gallon, I think of it as a good deal, sadly."

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George Gascón, the Los Angeles County district attorney.Philip Cheung for The New York Times

If you read one story, make it this

George Gascón is remaking criminal justice in L.A. How far is too far?

Elizabeth Holmes, the founder of Theranos, entering federal court in San Jose, Calif., earlier this month.John G Mabanglo/EPA, via Shutterstock

The rest of the news

  • Theranos trial: The prosecution in the case against Elizabeth Holmes, the founder of the failed blood testing start-up, rested its case on Friday.And then Holmes herself took the stand.
  • Jobless rate falls: After a lull in September, California employers bounced back in a big way in October as they added 96,800 new jobs, The Associated Press reports.
  • Extra cash for caregivers: More than 500,000 caregivers in California will each receive a $500 bonus from the state as soon as January, The Sacramento Bee reports.
  • Mental health care: A new California law aims to reduce wait times to see a therapist to no more than 10 business days, KQED reports.
SOUTHERN CALIFORNIA
  • Weather warning: Santa Ana winds this week will create high fire danger in Los Angeles and Ventura Counties.
  • Shots for minors: Scores of Mexican adolescents were bused across the border to San Diego to get vaccinated against the coronavirus, The Associated Press reports.
CENTRAL CALIFORNIA
  • Giant sequoias: Three wildfires in California in the past 15 months killed or mortally wounded 13 to 19 percent of these majestic trees.
  • Squaw Valley: The U.S. formally declared "squaw" a derogatory word, bolstering activists' argument that Fresno County's Squaw Valley community should be renamed, The Fresno Bee reports.
NORTHERN CALIFORNIA
Ryan Liebe for The New York Times

What we're eating

Mount Diablo.Shutterstock

Where we're traveling

Today's tip comes from Jennifer Russell, who recommends Mount Diablo State Park in the Bay Area:

"On a clear fall/winter day, after some rain, drive to the top of the mountain for the best viewing experience: look to the west, beyond the Golden Gate Bridge, to the Farallon Islands; southeast to the James Lick Observatory on Mount Hamilton; south to Mount Loma Prieta in the Santa Cruz Mountains, north to Mount Saint Helena in the Coast Range; and still farther north to Lassen Peak in the Cascades. North and east of Mount Diablo the San Joaquin and Sacramento Rivers meet to form the twisting waterways of the Delta. To the east beyond California's great central valley, the crest of the Sierra Nevada seems to float in space.

All in all, you can see over 8,539 square miles and parts of 40 of California's 58 counties from the Summit of Mount Diablo.

There's a handicapped accessible trail at the top and a really fun visitor center. On the way back down the mountain, stop at Rock City for a picnic and take the "Trail through time" marked trail over and around several sandstone caves."

Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

Simone Summers, Photos by Simone

And before you go, some good news

Benjamin Lowell and William Winkelman spent their early dates in San Francisco hiking and skydiving. In many ways, it prepared them to embrace the unknown together.

Read more of their love story in The Times.

Thanks for reading. I'll be back tomorrow. — Soumya

P.S. Here's today's Mini Crossword, and a clue: Negotiator of collective wages (5 letters).

Mariel Wamsley contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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