Playbook PM: How the White House sees the June jobs report

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Jul 08, 2022 View in browser
 
Playbook PM

By Eugene Daniels and Eli Okun

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WASHINGTON, DC - JULY 08: U.S. President Joe Biden signs an executive order on access to reproductive health care services during an event at the Roosevelt Room of the White House on July 8, 2022 in Washington, DC. President Biden delivered remarks on reproductive rights at the event. (Photo by Alex Wong/Getty Images)

President Joe Biden called the June jobs report "good economic news." | Alex Wong/Getty Images

SPOTTED outside the White House gates this morning: the "Face the Nation" production crew going through security before VP KAMALA HARRIS sits down for an interview on the White House campus with BOB COSTA that begins airing tonight on "CBS Evening News."

JOBS DAY The country added 372,000 jobs last month, over 100,000 more than most estimates pegged, which extends months of strong labor market gains. Here are the top-line numbers:

— Unemployment rate … Was 3.6%. The rate has held at the same level for four months.

— Average hourly wage … Grew 5.1% in June compared to last year.

— Labor force participation rate … Ticked down just a bit to 62.2%.

— Wages … Grew 5.1% from last year.

Some insight from AP's Christopher Rugaber: "The steadily robust pace of hiring shows that many businesses still want to add workers to meet high customer demand — a trend that should dispel concerns that the U.S. economy might be on the verge of a recession. With the nation gaining many additional jobs, more Americans are earning paychecks and are able to spend despite the highest inflation in four decades."

— The not-so-great news is that the strong jobs report means the Federal Reserve is likely on track to raise interest rates by 0.75 points at its meeting later this month. (A White House official says this is what they are expecting.)

THE VIEW FROM 1600 PENN — In remarks this morning, President JOE BIDEN called the report "good economic news," adding that "we have more Americans working today in the private sector than any day under my predecessor. More today than any day in American history."

He also addressed the inflation-sized elephant in the room: "I know times are tough. Prices are too high. Families are facing a cost of living crunch, but today's economic news confirms the fact that my economic plan is moving this country in a better direction."

A White House official told Eugene this morning they feel like the report was in a sweet spot : strong but not too strong that overheating is a huge issue — but also not slow enough to scare people into thinking a recession is right around the corner. (Though some analysts are "raising forecasts for a possible recession as early as the first half of 2023," according to our Morning Money team).

"This is not what a recession looks like," the aide said.

Something to watch for next week: the Consumer Price Index numbers, which will give more insight into where inflation is right now.

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BIDEN'S ABORTION MOVES — After weeks of agita on the left over the Biden administration's response to the end of Roe v. Wade , the president today signed a new executive order on abortion. The order, among other things, directs the HHS secretary to take action on protecting access to medication abortion, creates an interagency task force on reproductive health care access and urges the FTC to protect people's privacy when they look up reproductive care info.

An angry Biden excoriated the Supreme Court's conservative majority ahead of signing the order this morning: "This was not a decision driven by the Constitution," he said. "I don't think the court, or for that matter Republicans who for decades have pushed an extreme agenda, have a clue about the power of American women. But they're about to find out."

The EO is, of course, quite limited: There's not much Biden can do to maintain abortion access in red states that are banning or severely limiting the practice. And in some cases, there's not much the administration is willing to do: Bloomberg's Shira Stein scooped this morning that officials weighed the prospect of declaring a public health emergency, but ultimately rejected the idea. They "were concerned the declaration wouldn't make a substantial impact, that it might be seen merely as a public relations maneuver and that it would draw lawsuits … [or that it] would take money from Covid-19 programs."

More from Biden: The president said he'd stop by the Japanese Embassy today to sign a condolence book after the assassination of SHINZO ABE. He also highlighted Japan's much lower incidence of gun violence than the U.S. And Biden told reporters he hasn't yet made a decision on lifting China tariffs.

Happy Friday afternoon.

ALL POLITICS

SWING-STATE ELECTION SHAKEUP — The Wisconsin Supreme Court's conservative majority today barred the use of drop boxes for absentee ballots in this year's election, a victory for Republicans. They've long been used in the state, but drop boxes became much more common in the pandemic — and a target of GOP ire when DONALD TRUMP criticized them. Conservatives have labeled the drop boxes "ballot harvesting," while voting rights advocates warned that the 4-3 decision would make it harder for people (especially those with limited mobility) to vote. More from the Milwaukee Journal Sentinel

POLL OF THE DAY — Americans increasingly name inflation, the economy and personal finances as top issues they want the government to address in the latest AP/NORC Center for Public Affairs Research poll. That could be good news for Republicans in the midterms, though guns and abortion/women's rights are also rising as top issues. Covid-19, meanwhile, is fading big time: Just 4% of Americans named it among their top five priorities.

KFILE STRIKES AGAIN — GOP Georgia Senate nominee HERSCHEL WALKER worked as a spokesperson in 2012 for Momentis, a subsidiary of Just Energy, "which was repeatedly targeted by states' attorneys general and utility agencies over allegedly deceptive practices," CNN's Andrew Kaczynski and Em Steck report. Walker's company partnered with Momentis on marketing.

CASH DASH — Rep. TIM RYAN's Ohio Democratic Senate campaign raised $9.1 million in the second quarter.

AD WARS — Former VP MIKE PENCE's Advancing American Freedom has majorly ramped up its Facebook and Google acquisition ad spending since the overturning of Roe, per FWIW's Kyle Tharp and Nick Seymour, as he builds up his digital presence ahead of a possible 2024 bid.

FIRST PERSON — In a POLITICO Magazine excerpt from her new book, "Any Given Tuesday" ($22.39), LIS SMITH goes behind the scenes of former New York Gov. ANDREW CUOMO's downfall, "as it became increasingly clear that Cuomo wasn't being straight with any of us — myself included. He'd led us down a path of defending him against claims of sexual harassment without giving us the full truth. We felt betrayed and misled." She describes how Cuomo's team initially tried to stand firm and push through — using Virginia Gov. RALPH NORTHAM's blackface scandal as an example — before more and more new allegations turned the tide. (But former President BILL CLINTON still encouraged Cuomo to stick it out.)

"Say what you will about Andrew Cuomo, but he died as he lived," Smith writes, "with zero regard for the people around him and the impact his actions would have on them."

Smith tells N.Y. Mag's Shawn McCreesh that she's not worried about the book damaging her career prospects: "Sure, there are people who won't hire me after reading it … The decision I made was that, I don't give a fuck. If you think I'm good at what I do, you'll hire me. If this bothers you, then you weren't worth my time anyway." We also liked this nugget: Smith says the PETE BUTTIGIEG campaign wanted to use "Mr. Brightside" as their anthem, but they went with "High Hopes" because "our campaign lawyer said [the Killers song] had Me Too undertones."

 

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.

 
 

JAN. 6 AND ITS AFTERMATH

LOOK WHO'S TALKING — Oath Keepers head STEWART RHODES is planning to ask the Jan. 6 committee if he can testify publicly and live at the panel's next hearing, "answering all questions and waiving his 5th Amendment rights," per NYT's Alan Feuer.

THE INVESTIGATIONS — The Fulton County, Ga., DA investigation into Trump's effort to overturn the 2020 election has subpoenaed The Atlanta Journal-Constitution to try to get a recording of a January 2021 call with the then-acting U.S. attorney, the AJC's Tamar Hallerman reports.

THE WHITE HOUSE

VP FILES — With guns and abortion in the spotlight, Harris' relationship to Biden's inner circle has been changing of late: "[A] Harris staff shake up has led to a closer relationship with those in the West Wing, contributing to greater involvement in the White House's response at key moments," NBC's Mike Memoli and Carol Lee report. Her new chief, LORRAINE VOLES, is now at Biden chief of staff RON KLAIN's daily meetings, and Harris is meeting with Klain every week.

CONGRESS

ABORTION LATEST — House Dems are planning votes next week on two abortion-related bills, one that would codify Roe v. Wade and add other protections and another that would ensure women can travel across state lines to receive abortions, Sarah Ferris and Nick Wu report in Congress Minutes. Of course, they're not expected to be able to pass the Senate.

THE ECONOMY

HIGH PRICES — Housing in America in May was less affordable than at any time since 2006, per the latest National Association of Realtors housing affordability index out today, WSJ's Nikki Friedman reports. Rising mortgage rates and eye-popping home prices have combined to make it much more difficult to enter the world of homeownership, though the market has cooled since May.

 

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GUNS IN AMERICA

THE NEW RESTRICTIONS — After the Supreme Court put new limits on how states can restrict guns, Democratic-led states are trying to craft new restrictions — and seeing how far they can push it, Jeremy White and Katelyn Cordero report. Ahead looms "a years-long effort to defend and extend firearm rules under the court's sweeping new Second Amendment test."

— New York is trying a novel approach of reviewing concealed carry applicants' social media accounts before approving permits, AP's Marina Villeneuve and Maysoon Khan report . "It's an approach applauded by many Democrats and national gun control advocacy groups, but some experts have raised questions about how the law will be enforced and address free speech concerns."

THE SWISS CHEESE SYSTEM — In the past two years, more than 1 million gun sales — or about 4.2% — went through potentially before an FBI background check was completed because the process took longer than three days, NBC's Joshua Eaton reports . The FBI ultimately completed about a quarter of those checks and found close to 12,000 sales that should not have been allowed. Hundreds of thousands more were never finished.

BEYOND THE BELTWAY

IMMIGRATION CLICKER — WaPo's Nick Miroff has an illuminating border dispatch, with striking photos, from southern Arizona, where the extent of the policy and political challenge facing the Biden administration on immigration is vast across very different parts of the border. "Border crossers are arriving from more countries and in greater numbers than ever, at the same time that Mexican migration has surged to levels not matched since the mid-2000s."

TRUMP CARDS

FLYNN FILES — The Army is seeking to recoup nearly $39,000 from former Trump national security adviser MICHAEL FLYNN over his failure to report unapproved payments from Russian sources, which were among other foreign monies cited by the Pentagon inspector general, WaPo's Dan Lamothe and Craig Whitlock report. "The Army determined April 28 that Flynn violated the emoluments clause."

— The Atlantic's Barton Gellman is out with a big new feature on Flynn's transformation over the past several years: "What Happened to Michael Flynn? : In military intelligence, he was renowned for his skill connecting the dots and finding terrorists. But somewhere along the way, his dot detector began spinning out of control."

 

INTRODUCING POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don't miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY.

 
 

PLAYBOOKERS

STAFFING UP — Kishla Askins is now deputy assistant secretary for the office of enterprise integration at the Department of Veterans Affairs. She most recently was CEO and co-founder of Global Bridge Health Strategies.

TRANSITIONS — Christian Walker is joining Cornerstone Government Affairs as a VP on the federal government relations team. He previously was deputy chief of staff and legislative director for Rep. Ann Kirkpatrick (D-Ariz.). … Zach Weber is now deputy director of federal affairs for the state of Michigan. He most recently was legislative director for Rep. Brenda Lawrence (D-Mich.). … Virginia Poe is now director of public policy at the Interactive Advertising Bureau. She most recently was a legislative assistant for Rep. Charlie Crist (D-Fla.). …

… Will McDonald is now senior manager for comms and press at GiveDirectly. He previously was comms director for Rep. Sara Jacobs (D-Calif.), and is a John Delaney and Amy Klobuchar alum. … Community Catalyst is adding Catherine-Mercedes Judge as chief of staff (previously in NYC city government) and Gena Madow as senior director of comms (previously at FleishmanHillard and Planned Parenthood). … Harlow Poteete is now scheduler for Rep. Mikie Sherrill (D-N.J.). She most recently was scheduler for Rep. Carolyn Bourdeaux (D-Ga.).

 

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California Today: S.F.’s new district attorney

Brooke Jenkins, who helped lead the recall of her predecessor Chesa Boudin, will be sworn in on Friday.
Author Headshot

By Soumya Karlamangla

California Today, Writer

It's Friday. A Q&A with Brooke Jenkins, who will be sworn in as San Francisco's top cop today. Plus, a former top Theranos executive was found guilty of fraud.

Brooke Jenkins, a former assistant district attorney in San Francisco, is set to be sworn in as the city's new district attorney on Friday.Haven Daley/Associated Press

A month after San Francisco voters ousted their progressive district attorney, Chesa Boudin, the city has a new top cop.

Mayor London Breed on Thursday replaced him with Brooke Jenkins, a former San Francisco assistant district attorney who became a high-profile critic while campaigning for Boudin's recall. Jenkins left the district attorney's office in October after clashing with Boudin over his management style and what she considered lax policies toward criminals.

"We are a city of second chances, but the truth is we have to draw a line with people who choose hate, violence and a life of crime," Jenkins, 40, said at a news conference on Thursday.

Nationally, Boudin's recall was seen as a referendum on a liberal city's handling of crime and punishment. Locally, residents said the issue was more nuanced. They were frustrated by a growing perception that squalor and burglaries had become too commonplace during the coronavirus pandemic, though there was little evidence that Boudin's policies directly made crime significantly worse.

The changes at the district attorney's office are the latest in a wave of recall efforts that have hit San Francisco in recent months. In March, Breed appointed three parents to the San Francisco school board following an ouster — a decision that's already had big consequences.

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When it came to district attorney, Breed said she chose Jenkins because of her experience as a prosecutor (Boudin had worked a public defender) and her determination to hold perpetrators accountable while sticking to progressive reforms. "We can and should have both in a city like San Francisco," Breed said on Thursday.

Jenkins won't have much time to prove herself in the job, as voters in November will decide whether she or another candidate should complete the year remaining in Boudin's term.

Boudin has not ruled out running again. He did not respond on Thursday to a request for comment.

I spoke to Jenkins by phone on Thursday. Here's our conversation, lightly edited and condensed:

What are some of the things you're planning to do to reduce crime once you take office?

We have to restore our ability to hold repeat offenders accountable. One of the things that you learn really quickly as a D.A. is that there are certain crime drivers in a city. And oftentimes, a lot of the statistics are driven up by a small pool of repeat offenders. That very quickly needs to be addressed.

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We've also been dealing with a hate crime problem in San Francisco that has spiked and has left our Asian American community feeling particularly vulnerable. And so we're going to have to really be serious about how we handle those cases, not only the cases that already exist, but any that arise as we go forward — to send a clear message that hate in San Francisco will not be tolerated.

I think we've got to begin to address drug crimes in different ways. No longer can we accept open-air drug markets as simply being a part of big-city life and life in San Francisco. We need to have accountability for those who choose to continuously sell extremely dangerous and deadly drugs like fentanyl.

You consider yourself a progressive prosecutor, and you've criticized Boudin for what you've described as rigid adherence to progressive policies. How will you do things differently? What legal tools will you restore as D.A.?

For me, prosecutorial discretion is of paramount importance in a D.A.'s office. So I believe that while we should be very thoughtful about inequities in the system, and how we can be more fair, we need to restore prosecutorial discretion. And that's across the board. We shouldn't have any blanket policies that preclude us absolutely from accessing laws that we need in order to pursue justice or hold offenders accountable.

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Does that mean a return of things like cash bail or, in certain situations, charging juveniles as adults? It sounds like you're saying you want to have the discretion to use them as you wish.

Yes, I do want to have the discretion that if we believe that a case is appropriate for charging a certain way, that we do have the ability to do what we think is fair and is just. That doesn't mean that we won't be extremely thoughtful about when we exercise our discretion to go a certain way. But we have to make sure that we are being fair and that we have accountability, and that requires discretion in every single case.

Prosecutors left after Boudin took office, some citing his policies, others citing low morale. What will you do to improve morale?

The office has been divided for some time now, between pre-Chesa staff and post-Chesa staff and we can no longer function that way. We need to be one office, one team with one aligned mission, and that is to ensure that San Francisco is safe, and that we are being advocates for victims.

There's a lot of disagreement about what's driving crime in San Francisco. Some people think the pandemic was a greater driver than Boudin. Did Boudin's policies, in your mind, actually lead to more crime?

At this point, I really am trying to move away from a lot of the discussion we had in the recall. Regardless of the reason, San Franciscans don't feel safe; they feel like they are constantly at threat of being victimized in one way or another. We've got to work hard to serve as a deterrent to whatever is driving crime — be it the pandemic, be it lenient policies that criminals have become aware of.

We have to end this active environment where people feel like there's a lack of consequences here and that this is a safe haven for crime. I certainly believe that that's going to be critical to reducing crime in San Francisco.

But by no means did I ever blame all crime on Chesa Boudin. No district attorney can snap their fingers and do away with all crime. So we will have to work diligently against all the natural factors that always lead to crime existing and that is making sure that people with substance abuse problems get help and get into recovery.

Do you expect to see tangible results from these policies by November, when you're up for election?

That's a tough one because I do believe that people are going to have to be patient. They're going to have to temper their expectations. Not only is the city in crisis, but the D.A.'s office itself is in crisis. We lost hundreds of years of prosecutorial experience over the past two years. There's a lot of healing that needs to go on in that office. We have to restore it back to a place where lawyers are equipped to go in the courtroom and do their jobs effectively.

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Gov. Gavin Newsom, left, and Prime Minister Justin Trudeau of Canada in Los Angeles last month.Lucy Nicholson/Reuters

The rest of the news

  • A look to 2024: Gov. Gavin Newsom may be gearing up for a potential presidential run in 2024, and he's already zeroing in on an opponent: Gov. Ron DeSantis of Florida, Politico reports.
  • Theranos fraud: Ramesh Balwani, a former top executive at Theranos, was found guilty on Thursday of 12 counts of fraud.
  • Insulin: California is set to make its own brand of insulin, according to Newsom, CNET reports.
SOUTHERN CALIFORNIA
  • Griffith Park: After the death of a cyclist in April, Los Angeles city officials have temporarily closed a stretch of Griffith Park Drive to make more space for cyclists, runners, hikers and equestrians, The Los Angeles Times reports.
  • Happy Days: The actor Anson Williams has announced he's running for mayor in Ojai, his hometown, Deadline reports.
CENTRAL CALIFORNIA
  • Cannabis store: Fresno's first cannabis dispensary, the Artist Tree, will open its doors soon, The Fresno Bee reports.
NORTHERN CALIFORNIA
Linda Xiao for The New York Times

What we're eating

Roasted salmon glazed with brown sugar and mustard.

The Chinese Garden at The Huntington Library, Art Museum and Botanical Gardens in 2020.Kent Nishimura/Los Angeles Times via Getty Images

Where we're traveling

Today's tip comes from Felicia Thompson:

"When I was a teenager in the 1960s and lived in Monrovia, one of my favorite places to visit was the Huntington Library in San Marino. It is a beautiful estate built by the railroad magnate Henry Huntington and later turned into a library of rare books and manuscripts; the beautiful main house was turned into a museum with notable Gainsborough paintings and others, plus beautiful gardens and fountains.

My best friend and I skipped out of high school one afternoon at the end of our senior year when we were pretty much done anyway and went there. We just loved the place so much for its culture and quiet. Then, it was free and not at all crowded."

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.

What we're watching

A new documentary focusing on a small group of natural wine producers in California.

And before you go, some good news

Dozens of dogs gathered at Huntington State Beach on a recent morning — not to frolic or play fetch, but to surf.

Sugar, an 11-year-old female surf dog from Huntington Beach, came out on top in the canine competition. It was her second consecutive large surf dog title, The Daily Pilot reports.

Sugar's trainer, Ryan Rustan, was emotional after the win. He said it was in honor of his father, Rusty, who died this year.

"I'm 40 years old, and he always said, 'Keep surfing with your dog, son, keep doing it, I love it,'" Rustan said. "Other people go, 'What are you doing with your life?' but my dad was so stoked."

Thanks for reading. I'll be back on Monday. — Soumya

P.S. Here's today's Mini Crossword, and a clue: Indenting key (3 letters).

Isabella Grullón Paz and Briana Scalia contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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