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New Day

Trump Returns to White House; Potential for Iranian Attack; Path for $2,000 Stimulus Checks; Rainy Start to New Year's Eve; Hammon Becomes First Woman to Coach NBA Team. Aired 6:30-7a ET

Aired December 31, 2020 - 06:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[06:30:00]

TOLUSE OLORUNNIPA, CNN POLITICAL ANALYST: But I would not be surprised if he finds some way to show his displeasure, to express that he does not have confidence in the results of the election.

And it's important to say, if this were happening in any other country with President Trump calling for a big protest, calling for millions of people to come to Washington, D.C., on January 6th, calling for, you know, his most loyal supporters, some of whom have been violent, to take to the streets of D.C., we would be saying that this is an attempted coup, that this is a breakdown in democracy. I guess it's a tribute to the strength of our democracy that, as Jackie said, none of this is going to go anywhere and that we're all able to kind of dismiss it out of hand.

But the things that are happening from the president to potentially the vice president to the members of the Senate on the Senate show that they are willing to throw this democracy under the bus, at least theatrically, and at least rhetorically, and that is opening the door for President Trump to continue this fight. If these Republicans were to go to the White House and say, Mr. President, it's over, if Mike Pence were to go to the White House and say, Mr. President, it's over, I'm going to certify these elections, they may get some nasty tweets, but the president would have to give up this fight eventually. And the fact that none of them are doing that, or very few of them are doing that, is quite telling about where we are with our democracy at this moment.

JIM SCIUTTO, CNN ANCHOR: Yes.

ALISYN CAMEROTA, CNN ANCHOR: Right.

So, Jackie, while the theatrics are happening in -- on Capitol Hill, obviously, millions of Americans are struggling. We see the food lines stretched epically, I mean more than -- than the organizers of these food drives tell us they've ever seen before.

JACKIE KUCINICH, CNN POLITICAL ANALYST: Right.

CAMEROTA: And then Mitch McConnell basically squashed the $2,000 payments to Americans. And their argument was that it's not targeted enough and that some people who haven't lost their jobs would still get them. And I suppose that is a fair argument if the Republicans or Mitch McConnell hasn't lost their sort of moral authority on, now they're deficit hawks? Today, at the end of the year, they're deficit hawks? When people are being evicted and in food lines after everything that they've spent money on and to cut taxes on for the past four years?

KUCINICH: Yes. I mean I think we could see this coming. Once a Democratic administration is set to take over, all of a sudden they find religion on the deficit again.

Now, there are so many people suffering right now who, you know, $600 isn't going to cut it. But it seems that Senator McConnell has made the calculation that places like -- right now, just looking -- you know, the consequences of this won't affect them in a way in Georgia, which is where, I mean, politically, keeping his -- keeping the -- the majority in Republican hands is maybe the most important thing to Mitch McConnell. And he's clearly made the calculation that Senators Loeffler and Perdue can support these payments, like he has -- which they have. They've come out in support of the $2,000 payments, but never have to vote on them. Should that change, perhaps, you know, he sees some movement in the polling on this issue, maybe we'll see it. But it certainly doesn't seem that way. It seems like the clock is going to run out and these Americans, many Americans, will be left without a lifeline.

CAMEROTA: Jackie, Toluse, thank you very much. Great to see you. Happy New Year.

KUCINICH: Happy New Year.

CAMEROTA: Tensions between the U.S. and Iran are escalating again. Is Tehran planning to retaliate against America for killing a top general? We have a live report with what's happening from the Pentagon, next.

(COMMERCIAL BREAK)

[06:36:55]

SCIUTTO: Now to this developing story.

The U.S. military is flying nuclear-capable B-52 bombers to the Middle East amid ongoing tensions with Iran, though they're pulling a U.S. aircraft carrier. This weekend marks the one-year anniversary of the date the U.S. assassinated a top Iranian general. It comes as CNN has learned that U.S. defense officials are sharply divided about the potential for Iran to retaliate now.

CNN's Barbara Starr is live at the Pentagon with more.

And, Barbara, you know, we heard and read some alarming headlines, but there are senior defense officials who are skeptical that an Iran attack is imminent. What are we learning?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, good morning, Jim. Let's go back and start with what you mentioned, the B-52 bombers

flying to the Persian Gulf on a quick show of force mission over the last couple of days. By all accounts, they are now back. But it was a very visible sign of the U.S. effort to deter Iran, a policy of deterrence, showing that the U.S. is ready to go if Iran were to attack.

The big concern right now, is Iran really planning something with the militias that it backs in Iraq and those militias, perhaps, targeting U.S. troops in Iraq? Some of the intelligence does show, officials say, that there's been a flow of weapons, and there are indicators, at least, of plotting and planning some kind of complex attack against U.S. troops in Iraq as we come up on this one-year mark of the killing of Iranian General Qasem Soleimani.

You're right, absolutely divided. Intelligence is never really certain, is it? You only know for sure if something actually happens. But what we do know is from an official with direct knowledge of the thinking of the chairman of the Joint Chiefs of Staff, that official telling CNN, and let me quote very precisely, the official saying, the chairman of the Joint Chiefs of Staff is paying extremely close attention to the situation. The military doesn't believe an attack is imminent, but is taking all precautions to ensure they deter Iran while protecting U.S. forces.

Those last few words, while protecting U.S. forces. We know that some extra protective measures have been taken. January 3rd marks that one- year date of that assassination. A lot of nerves and tension, but a lot of effort to make sure nothing gets out of hand.

Jim.

SCIUTTO: That's a balance, as you know better than me, the military often attempts a strike, right, as to deter, but also not spark a further escalation.

How do the various force movements indicate that? You fly the B-52s, but also rather than extending the USS Nimitz in the region, you send that aircraft carrier home.

Tell us how we should read those moves.

STARR: Right. Right. I think it's a very delicate balance. Is -- sending the carrier home, it had been out there for quite a while. It was due to come back. What people will be watching for, which could be the next step, will any additional U.S. forces come into the Middle East region to effectively replace the carrier? We haven't seen that yet.

[06:40:01]

What they want to do is strike that balance you mentioned. Make it abundantly clear through this very public messaging to Iran not to try anything. I mean even President Trump tweeted several days ago after there was a rocket attack against the U.S. embassy in Baghdad warning them not to do anything. The -- the so-called red line perhaps is -- and everyone hopes this

does not happen --

SCIUTTO: Yes.

STARR: If any U.S. troops were to get killed in an attack. Anything like that. They don't want it to even get to that point.

So you're seeing the messaging, you're seeing that balancing act of U.S. troops.

But make no mistake, you know, a lot of nerves, a lot of tension, everybody would like everything to be very peaceful going into this new year.

SCIUTTO: And that red line you mentioned, of course, one the U.S. enforced last year, when similar attacks hit U.S. forces, there, killed a U.S. contractor, there was an immediate response. So something to look out for.

Barbara Starr, always good to have you on the story.

STARR: Thanks.

CAMEROTA: Breaking news right now, protesters taking to the snow- covered streets in Minneapolis overnight after police fatally shot a man during a traffic stop. The shooting happened at an intersection near where George Floyd was shot and killed by police in May. Now, police say that officers pulled over a driver who was suspected of a prior felony and witnesses say the suspect fired first. Then, at least one officer returned fire. The man was pronounced dead on the scene. A woman in the car was not hurt. The Minneapolis police chief plans to release the body cam footage later today.

SCIUTTO: Well, the U.S. Census Bureau has announced it will miss tonight's year-end deadline for reporting population data. This is important. That data is used to determine representation in Congress and the Electoral College. Sound important? The delay could impact President Trump's effort -- this also politically important -- to exclude for the first time undocumented immigrants from the figures used to allocate those house seats. It is not clear if the 2020 census results will be completed before President Trump leaves office in 20 days. That's important as well because vice president or rather President-elect Biden has said he will not exclude those undocumented immigrants from those numbers. We'll continue to follow that.

Up next, the battle over coronavirus stimulus checks. Do Republicans have the leg to stand on when they say they don't want to add to the deficit? We're going to look at the numbers.

But first, see how America's 39th president used his passion for music to win the 1976 election. Here's a preview of the new CNN film, "Jimmy Carter: Rock and Roll President," which airs on CNN this Sunday.

(BEGIN VIDEO CLIP)

JIMMY CARTER, FORMER U.S. PRESIDENT: One of the things that have held America together has been the music that we share.

UNIDENTIFIED MALE: Jimmy Carter used music in politics. It had never been done quite that way.

CARTER: I want to introduce to you the Allman Brothers.

UNIDENTIFIED MALE: He enjoyed our music and he became a friend.

UNIDENTIFIED MALE: He's a kindred spirit of a rare kind. A man you don't meet every day and that you're lucky to meet if you ever do.

WILLIE NELSON, MUSICIAN: Jimmy and I basically come from the same spot.

UNIDENTIFIED MALE: When we went to the White House, we were welcomed in.

GARTH BROOKS, MUSICIAN: His love for music made sense to me because music is the voice of the heart.

UNIDENTIFIED MALE: That was the music of change and dissidents. There was a risk politically to that and it didn't matter to him.

CARTER: I think music is the best proof that people have one thing in common no matter where they live, no matter what language they speak.

UNIDENTIFIED MALE: "Jimmy Carter: Rock and Roll President," Sunday at 9:00 on CNN.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[06:47:37]

CAMEROTA: This morning, those $600 stimulus checks are finally on their way to Americans in need. Senate Majority Leader Mitch McConnell has effectively killed the chances of those checks increasing to $2,000.

Joining us now, CNN chief business correspondent, CNN anchor of "EARLY START," Christine Romans, and former acting labor secretary under President Obama, Seth Harris. He's an adviser to the Biden campaign and transition team.

Great to have both of you here to get your takes on this.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Hi.

CAMEROTA: So, Christine, it sure took a long time to get this added $600. Will this make a difference?

ROMANS: It's just maddening. It took too long. This money should have been already flowing for people. I mean there's a lot of suffering out there. Will it make a difference? Yes. Is it perfect? No. I mean there are

going to be people who are going to get $600 checks who are just going to save that money. We saw that in the first round of checks. Some people are going to spend that and it's going to be gone quickly because they're behind on their rent, they're behind on their bills. Others are just going to run out and buy stuff at Walmart or the big box stores and that's going to help corporate profits, but maybe not their family's finances.

I think the most important thing here is the extension of unemployment benefits, $300 a week in unemployment benefits. The president was slow to sign the bill, so there's going to be a hiccup here when people get that money, but it will be 11 weeks of unemployment benefits. That, I think, is the most important part of the rescue for people who are really hurting right now.

SCIUTTO: That's a good point because it's not just the stimulus checks, it is the extension of those unemployment benefits, in effect two injections of cash here.

I wonder, Seth Harris, when we look back to earlier in the year, all this money spent in the first couple of rounds of stimulus, again on direct payments, extension of unemployment benefits, but also PPP, you know, this Paycheck Protection Plan, was there data that indicated it was really those direct payments that had the most significant economic effect? That that was the most efficient way, not perfect, but most efficient way to get money, not just into people's hands, but also to juice the economy a little bit.

SETH HARRIS, FORMER ACTING LABOR SECRETARY UNDER PRESIDENT OBAMA: Well, there's a lot of evidence that the CARES Act, which had all those programs that you just described, made a big difference in keeping the economy from bottoming out. Really from collapsing.

It -- you know, in a crisis, you worry a lot less about targeting the money perfectly and worry more about trying to get the money out as quickly as possible just to try to keep the economy moving forward in some meaningful way.

[06:50:02]

The surest way to do that is to put the money in the hands of the people who are going to spend it right away. Unemployed families, families that are food insecure, low-income families who are the families that got hardest hit by the pandemic recession. So the CARES Act absolutely made a difference. It didn't save us from a big drop in economic growth, but it did help us to avoid the worst catastrophe that would make us look more like the Great Depression.

CAMEROTA: Christine, as far as what Seth was saying about, you shouldn't worry about targeting the money, Republicans, at least Majority Leader Mitch McConnell, has seemed very concerned about untargeted money getting out into the economy. And, you know, I'm sorry, but we're all old enough to remember six months ago when they didn't -- Republicans had given up on being deficit hawks throughout the Trump presidency. Just to remind people with visuals, here's how the federal budget deficit has increased every year under President Trump. And now, at the end of his presidency, when Americans are so desperate, now they care about the deficit?

ROMANS: Yes. Finding religion now on deficits is just, oh, my -- it's just stomach churning. And that chart that you just showed, that projection of $1 trillion, that's pre-pandemic. You know, now we have a budget -- we have a deficit projected of something like $3 trillion. And that's because of all the spending to get us out of a health crisis. Even before a health crisis, this was a GOP-led Senate and a president here, a GOP president, who were spending like crazy, even in a good economy, and driving up the deficit.

You know, you remember, the president told "The Washington Post" that he could get rid of the national debt in eight years. The exact opposite has happened. And that's even before the pandemic. For them to get religion now on deficit spending, when we're trying to save an economy that has never seen something like this, is pretty rich and will be pretty hypocritical. I'll be surprised if they can really sing that tune next spring.

SCIUTTO: Pretty hypocritical, friendly, Christine Romans.

Seth -- Seth, what is the outlook for the economy going into 2021 or the start of the Biden administration? I mean you do -- we should not, you know, cast aside a still significant stimulus plan that did pass, $900 billion, you know, is a lot of money. You do -- it's slow, but you do have a vaccine coming this year. Is the economic outlook positive in 2021?

HARRIS: Well, I agree with you that this new recovery package, I like to think of it as a recovery package rather than a stimulus package, is going to make a difference in helping people to avoid the real misery of this pandemic recession. It's going to help to save some businesses. It's going to absolutely help some families that are unable to find jobs right now.

But we're still in a very, very deep hole. We have 10 million jobs fewer today than we did back in February. We still have 20 million beneficiaries on various forms of unemployment assistance right now. Hundreds of thousands of businesses, particularly in black and brown communities, have just disappeared. They don't economist anymore. So we're in a very deep hole.

My expectation is that 2021 is going to be a year of slow recovery, but that's going to depend almost entirely on public policy decision making in Washington, D.C. Are we going to make the very large investments in not just responding to the COVID crisis, but also in helping to build a fairer, more just, more equal economy that grows the middle class. Are we going to invest in infrastructure spending, manufacturing in the caring economy and education?

ROMANS: Yes.

HARRIS: That's what President-elect Biden laid out during the campaign in his Build Back Better program.

My expectation is that if Congress will go along with him in making those investments and growing the economy, yes, we can recover.

SCIUTTO: Yes.

HARRIS: Otherwise, it's going to be a very, very slow crawl back to normal and we will have lost months and months and months of job recovery. That's really going to put us in a hole.

SCIUTTO: Another reason those runoff races matter.

CAMEROTA: Yes.

Seth Harris, Christine Romans, thank you very much for all of the analysis.

ROMANS: You're welcome.

CAMEROTA: So it's New Year's Eve, but the pandemic is not the only reason for Americans to stay home tonight. Much of the country is facing some pretty miserable weather.

CNN meteorologist Allison Chinchar has our forecast.

What does it look like, Allison?

ALLISON CHINCHAR, AMS METEOROLOGIST: It's a pretty messy start to the day out there in a lot of places. And that's the thing, this is a pretty big system. So this isn't really just impacting maybe say a couple of states here and there. You've got rain and snow stretching from Maine all the way back down towards Texas.

Now, we've got rain right now in cities like New York and Boston. You've got a little bit of that snow/rain mix for states like Ohio, as well as Pennsylvania.

[06:55:00]

But that snow doesn't stop there. In fact, take a look at this. You have snow that stretches all the way back towards the Texas/Mexico border. That's where that -- how far that cold air is really putting itself in place. But we also have the potential for some strong to severe storms across the Gulf Coast, as well.

One of the biggest concerns for portions of northern Texas and areas around Missouri, Kansas, Oklahoma, is going to be the mix of precipitation. It's not just snow. You can deal with snows with plows as long as it's in small amounts. But ice, it doesn't matter how much ice you have, it's very treacherous to deal with. In some of these areas you can see here could get upwards of say a quarter of an inch to a half of an inch of ice accumulating on roads, trees, and even power lines.

We also talk about some pretty heavy rain. Areas down to the south and where we're going to see that focus, guys, about two to four inches of widespread rain. And, yes, the potential for tornadoes, damaging winds and hail exist for cities like Houston, New Orleans, and even Birmingham, Alabama. CAMEROTA: Wow, you're making it a lot easier to stay home tonight.

Thank you for that messy forecast.

All right, meanwhile, it was a history-making night at the NBA. A woman shatters basketball's glass ceiling. Details in the "Bleacher Report," next.

(COMMERCIAL BREAK)

SCIUTTO: A big night in the NBA as Becky Hammon became the first woman to lead a basketball team during the regular season.

Carolyn Manno has more in the "Bleacher Report."

Great to see this moment.

CAROLYN MANNO, CNN SPORTS CORRESPONDENT: Hey. Yes, absolutely. Good morning, Jim. It's a long time coming.

As you know, Hammon is already blazing a trail in the league. She's the first full-time female assistant coach in the history of the NBA. But as she put it, this really is a significant moment, a big deal for her and for women everywhere who aspire to work in the league. Hammon said she didn't walk into the arena thinking that she would be given the role, but after Spurs Head Coach Gregg Popovich was ejected in the second quarter against the Lakers, he gave the keys to Hammon, whose been a coach within the organization since 2014.

The Spurs ended up losing to the reigning world champion Lakers. LeBron James scoring in double figures for the 1,000th straight game of his career on his 36th birthday no less. Still, a significant night for Hammon.

And lastly for you this morning, Jim and Alisyn, the Wisconsin Badgers beat Wake Forest in the Duke's Mayo Bowl in Charlotte yesterday. They just won't have any hardware to show for it when they return to campus. While dancing in the locker room, you ready for this, quarterback Graham Mertz accidentally fumbled the Lennox Crystal Football. It fell off the base and shattered on the floor. Those Badgers, though, a resourceful bunch. A little tape, a little squeezable bottle of Duke's Mayo, good as new. The most 2020 trophy of all-time, Jim, just put some mayo on it. That's the lesson.

SCIUTTO: Oh, my goodness. That is a fumble if I've ever seen one.

MANNO: (INAUDIBLE).

SCIUTTO: Carolyn Manno, thanks very much.

[07:00:00]

CAMEROTA: But they MacGyver-ed it at the end there.

SCIUTTO: They did. Yes.

CAMEROTA: That was just a little mayo and tape. MANNO: Yes, not bad.

SCIUTTO: Who will notice?

NEW DAY continues right now.