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U.S.-China Tensions; Interview With Select Committee On Strategic Competition With China Rep. Jake Auchincloss (D); Interview With "The Washington Post" Deputy Business Editor Damian Paletta; 209K New Jobs Added In June, U.S. Job Market Slowed Down; Following Five Shark Attacks, New York Beaches Increase Shark Patrols; Biden Delivers Remarks On Health Care Costs. Aired 3:30-4p ET

Aired July 07, 2023 - 15:30:00   ET

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

[15:30:00]

REP. JAKE AUCHINCLOSS (D), SELECT COMMITTEE ON STRATEGIC COMPETITION WITH CHINA: And number three, we should be working with them to ensure their energy security and their ability to counter disinformation campaigns, which the CCP is launching at full force right now. So, these are things that we can do regardless of what Xi Jinping might wake up in any given day thinking he wants to do.

JIM SCIUTTO, CNN ANCHOR AND CHIEF NATIONAL SECURITY CORRESPONDENT: Yes, lots of discussion of turning Taiwan into a porcupine, the idea of making it a -- the smaller animal in the united military conflict, at least one difficult to defeat. Congressman Auchincloss, always good to talk. Thanks for joining us this afternoon.

AUCHINCLOSS: Pleasure.

SCIUTTO: Brianna.

BRIANNA KEILAR, CNN ANCHOR: Growth in the U.S. economy cooling a bit. Today, we learned that 209,000 jobs were created in June, that's backing off a bit from those red-hot numbers of recent months, still pretty warm, though. The question now for the Fed, will this change its calculus on interest rate hikes? The Biden White House chalking it up as another step in the right direction.

(BEGIN VIDEO CLIP)

JULIE SU, ACTING LABOR SECRETARY: It's stable, it's strong, you know, combined with a 3.6 unemployment rate, which you've already noted, this is unemployment rate, 3.6 percent unemployment. The predictions were that it would not fall below four percent for years, and it has fallen below that, not just this time, but we've had 17 straight months of an unemployment rate that is under four percent. We haven't seen that since the 1960s.

(END VIDEO CLIP)

KEILAR: We're joined by Damian Paletta, he is the deputy business editor for "The Washington Post." Damian, what's your read on today's numbers? DAMIAN PALETTA, DEPUTY BUSINESS EDITOR, THE WASHINGTON POST: Well, I think it's -- you know, even though the number came in a little lower than what people were expecting, and lower than last month, it's a really strong report. You know, we've been hearing about recession predictions for, I feel like, more than a year, and the labor market keeps pulling us through. Really strong consumer spending. This -- and this idea that everyone who needs a job and wants a job can have a job, that's just giving an increase to consumer confidence as we enter, kind of, the second half of 2023.

So, I think there's still, obviously, some dark clouds, you know, these concerns about the U.S. relationship with China and the growing piles of debt that households and businesses have is a concern. But right now, we seem to be to in very good position to possibly avoid a recession that many thought would hit us in the third quarter.

KEILAR: Yes, I mean, that could be very, very good news, obviously. How is the Fed looking at this? What does this mean as it considers what to do with interest rates?

PALETTA: Great question. So, the Fed took a brief pause when it met last in June. I think a lot of people are expecting the Federal Reserve is going to go back to raising interest rates in their July meeting just a bit, you know, just a small bit, but it's their way of signaling that they still feel like they need to keep their eyes focused on inflation.

So, you know, they're going to keep increasing interest rates now, that's obviously bad news if you want to go buy a house, maybe if you need to borrow money to buy a car. But I think they've shown that they've been able to raise interest rates without, you know, doing massive destruction to the economy. So, if they raise interest rates a little bit and the labor market remains strong, the consumers keep spending, maybe this economy can withstand a little bit, you know, higher prices.

But I think they're at the point now where they're trying to figure out when do they finally stop? If they do raise interest rates just a bit more, is that going to be enough to get inflation to come back down? Inflation in the U.S. is lower than it is in many other countries, but it's still much higher than the Fed is comfortable with. So, that's something they're going to be watching very closely.

KEILAR: You mentioned this could be a sign that we could be avoiding a recession here in the near term. What do you need to see happen to be sure that that's a sure thing we avoid it?

PALETTA: Well, great question. I mean, you know, so we're entering the second half of the year. This is when a lot of consumer spending really kicks in as we get closer to the holidays. And I think if we see retailers really prepare and hire aggressively for, like, the, you know, winter shopping season, that will be a really good sign. If we see the consumers are going to spend heading into the holidays, that's another really good sign.

So, I think those are the things we're going to be watching. At the beginning of the year, we had those big bank failures that were very concerning, and obviously huge layoffs in Silicon Valley. So that, to me, signaled that here we go, we're heading into a recession, but the economy seems to have shrugs that off. If we can keep this going with consumer spending going well and consumer confidence picking up a bit, I think we should be in pretty good shape.

KEILAR: Yes. And really interesting, the most women ever working as we see in these numbers, which is an interesting data point to witness in this jobs report. Damian Paletta, always great to have you make sense of all of this for us. We appreciate it.

PALETTA: My pleasure. Thanks.

KEILAR: Boris.

BORIS SANCHEZ, CNN NEW DAY WEEKEND ANCHOR: Coming up, at any moment, President Biden set to speak at the White House. We're going to bring you his comments as soon as they begin.

Plus, officials in Pennsylvania said that a dangerous inmate suspected of homicide has escaped their capture and he has known survivalist skills. Details in just moments.

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SANCHEZ: Shark patrols are ramping up at beaches in New York after five people were bitten in a 24-hour period this week. Officials are even using drones, in addition to lifeguards, to scour the water for potential threats, and swimmers are being told to stay vigilant.

CNN's Polo Sandoval joins us now from a Long Island Beach. And Polo, I know there was a recent shark attack not far from where you are.

POLO SANDOVAL, CNN CORRESPONDENT: Not far from where we are, Boris. I can tell you today though, Friday, the weather is perfect, water temperature ideal, so you are seeing people actually jump into the water. Yes, I've spoken to some folk who say that there are still some concerns about the discovery that was made just off of these shores just yesterday, about a 10-foot thresher shark.

[15:40:00]

According to state officials, lifeguards on duty, quickly asking people to step out of the water, allowing that shark to go on its way back out to sea incident free. The concern, though, is that more of those sightings could happen. And then the biggest concern is what happened days ago with at least five -- what are believed to be shark- related, nonlethal encounters not far from where I'm standing.

And that is why New York state officials have been deploying, not only on the beach but also in the air. Not only helicopters, but also, as you mentioned, drones with New York Governor Kathy Hochul actually sending out not only the drone resources but the training necessary for officials to keep a close eye and a close watch on the situation just out of the water.

But I have to tell you, Boris, whether they're doing it intentionally or not, most of the folks I've seen out here, they are following the recommendations of officials, which is don't go too far away from shore, swim close together, and avoid some of those baitfish. But it's important to remind folks, at the end of day, lightning be related deaths, they fairly (ph) outnumber any sort of shark encounters. So, the chance is extremely slim, but that doesn't mean that people aren't worried about it today and the rest of the summer, too.

SANCHEZ: Important for that context to not ruin a good day at the beach. Shark attacks remain extremely rare. Polo Sandoval, enjoy the sunshine, my friend.

Jim.

JACKSON: Coming up next, President Biden is expected to speak in that room at any moment. We're going to bring it to you live as soon as it begins.

Plus, Las Vegas Police have just announced whether they will file charges against a security guard who allegedly slapped pop star Britney Spears while protecting NBA rookie Victor Wembanyama.

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[15:45:00]

KEILAR: Now, to some of the other headlines that we are watching this hour. Right now, a manhunt underway for a dangerous inmate that authorities say has survival skills. Officials say he escaped a prison in Warren, Pennsylvania, by climbing on top of some exercise equipment, tying bed sheets together, and using them to pull himself down through a metal gated roof. He has a large tattoo on his -- or, pardon me, has large tattoos on his arms. He was last seen wearing his prison uniform, a denim jacket, as well as Crocs as footwear. Officials say, he was being held on arson and burglary charges and that he is a suspect in a homicide investigation.

Also, an attempted robbery at a nail salon in Atlanta does not go exactly as planned.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Everybody, get down. Give me all your money. Empty out your pockets. Give me all your money. Get down. Where's the money?

UNIDENTIFIED FEMALE: What the heck?

UNIDENTIFIED MALE: Give me the money. Where's the money?

UNIDENTIFIED FEMALE: I don't --

UNIDENTIFIED MALE: Everybody give me everything.

(END VIDEO CLIP) KEILAR: All right. So, police say that suspect demanded money, as you heard there. Said he had a gun, but then no one really gave him the time of day, and he eventually just left the store and no one was hurt.

And then in Ecuador, officials successfully rescued more than two dozen people stranded in midair after a cable car malfunctioned. Officials say, all 27 people are safely back on the ground. They did not suffer any injuries. 47 others who were stranded waiting at the top of the mountain also transported back to safety.

Boris.

SANCHEZ: Well, today we're in the midst of a golden age of black television, but we've -- where we've arrived, it's a result of an 80- year struggle for black artists to be seen and heard on T.V. Now, the new CNN original series "See It Loud: The History of Black Television," celebrates the creators who brought black T.V. to life and looks at the impact that it's had on American culture. Here's preview.

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DEBBIE ALLEN, ACTRESS: We don't see black people in that 9:00 dramatic slot. We might see one in "L.A. Law" or here and there, flyway, but they're not the center of the -- the core of what the show is about.

GARTH ANCIER, FORMER PRESIDENT, WB & FOX NETWORK: I don't recall black dramas being pitched very often.

UNIDENTIFIED FEMALE: Certainly, you could say it was an outcome of the Clarence Thomas and Anita Hill hearings of the show that black people could hold an audience with a drama without taking their clothes off.

ANCIER: Television networks were under the impression that their advertising rates would be lower for the black family shows. There was just a sense that my colleagues did not want a -- basically an all- black cast.

BLAIR UNDERWOOD, ACTOR: As long as we can make you laugh, then it's comfortable. Whenever you're playing dramatic roles and you're taking on a different persona, it's uncomfortable.

ANCIER: I don't think that would be true today, but that was true 20 years ago.

(END VIDEO CLIP)

SANCHEZ: One, two, three, four, five, six, seven, eight, nine, 10. We want to toss to Joe Biden, he's at the White House right now speaking from the east room. Let's listen.

JOE BIDEN, U.S. PRESIDENT: But, you know, in America, it sounds corny, but fairness is something we kind of expect. And I don't know anybody who likes being viewed as having been played for a sucker, taken advantage of. People are ready to meet their responsibilities, but I think this is a big deal. It's a big deal, and I have to thank my staff, and I mean that sincerely, for focusing on the health care piece. I didn't know some of this.

[15:50:00]

I thought I knew a hell of a lot about health care and -- I've been a significant -- I've been a significant consumer and my family has as well. But, look, Cory (ph), your story turns out -- it's a very familiar one to too many Americans. You try to do the right thing, only to get ripped off instead. And too many nice, too many Americans lie in bed staring at the ceiling worrying what will happen if their spouse gets seriously ill. What will happen if something else happens to them. Do they have enough insurance? Will they have to -- how are they going to pay the medical bills? Will they have to sell their home?

If you can now point a personal privilege we used to say in the Senate, I was telling my staff that I was raised -- it was a middle- class family. We weren't poor. We lived in a three-bedroom house with four kids and a grandpop. Split little home. And my -- "The boys", now, the princess, my sister had her own bedroom, as she should have, but the three were -- there are four -- there were two sets of bunks in the other room.

And there was a closet that ran as you walked down -- you walked up the stairs and walk straight down the hall, you went in "The boys' room," the three of us. And on the left, there was a closet in that whole wall. My parents' bed, headboard was against that -- where that closet was. And every once in a while, rarely, my -- you can hear, sort of, restlessness going on, you know, like the -- and one morning I get up and I ask -- I said, what's wrong with dad? He said that he just got word that his company said they're no longer going to pay for health insurance. They don't know what they are going to do.

Well, you know, for all of you out there who -- and there's so many people who still are in that circumstance. And we talk about being deprived of your dignity. Not being able to take care of your family if you don't have health insurance is, I think, one of the most consequential things can -- that can happen to a person. And so, you know, for all of you out there, I just want you to know I get it. We get it. We have your back. And we're never going to stop fighting for you. And I promise you, you know, since I've been in office, we've been carrying out my economic vision.

All right. OK. Carry on my economic vision to move from trickle-down economics what -- to what everyone on "Wall Street Journal" -- from the "Wall Street Journal" financial times is calling Bidenomics. It's about growing the economy from the middle out to bottom up. And because when that happens, the folks at the bottom have a shot, they get a chance to rise up, and the wealthy still do very well. It's not to hurt anyone at all.

But today's job shows that I think jobs is important. I think it shows that Bidenomics is working. We added 200,000 jobs to, I think, 209,000 jobs last month. In all total, we created over 13 million, I think it's 13,300,000 -- in two and a half years, that's more than any president ever created in a four-year term. And folks, the unemployment rate is below four percent for 17 straight months --

UNIDENTIFIED FEMALE: Yes.

BIDEN -- not since 1960 has that occurred. Inflation continues to fall, that's less than half of what it was a year ago. And the rate of Americans without health insurance is at an all-time low. Premiums have recovered -- premiums recovered in the Affordable Care Act are $800 less per person than before I took office, and that's Bidenomics. And today I've joined by healthcare advocates, and leaders, and many of -- if I started name you all, we'd be here all night.

But I wanted to talk about key parts of my economic plan. We're protecting consumers and reducing healthcare costs without, without, in any way, hurting insurance companies, docs, hospitals, or anybody else. You know, my State of the Union Address, I outlined our fight to end junk fees and hidden charges for companies that seek -- sneak into your bills, things that you don't think you're going to pay for. Each year those junk fees cost hundreds of dollars a month, for tens of billions of dollars weighing on down family budgets and making it harder for people to pay their bills.

[15:55:00]

Junk fees may not matter to the very wealthy, and it's not the wealthy's fault, by the way. But they matter to working folks and homes like the ones I grew up in. Over the past few months, my administration has chronic cracked down on junk fees across different industries, banking, hotels, concerts, tickets, airlines, cable internet, and the internet. And today, I'm pleased to announce that we're making some progress in healthcare.

First, my administration is cracking down -- excuse me, cracking down on junk fees for health insurance plans that are like the ones that are inexpensive, but too often stick consumers with hidden fees. As Cory (ph) just talked about, junk fee plans are short-term health insurances that are supposed to provide a few months of temporary coverage for people who are moving from one plan to another.

But the prior administration before me decided to let insurance companies make more money by selling junk plans that are up to three years long. Up to three years long. Americans thought they were buying temporary insurance that would provide real coverage on those plans. Instead, many have been saddled with thousands of dollars of medical bills these junk fees don't cover. And I think it's outrageous.

There are two main ways junk fees stick you with a high bill. The one way you just heard from Cory (ph). He needed emergency surgery to get an appendix removed, but hidden in the front -- in the fine print, his plan said it would only cover a fraction of the $37,000 the hospital bill was even though he was paying his insurance premiums every month.

Another predatory way of getting around protection, Barack and I fought so hard in the Affordable Care Act to accomplish, protecting millions of people with pre-existing conditions like cancer and heart disease. That was a way to get around that. Just imagine if you had a heart attack and you expect your insurance company to pay for it, or you're diagnosed with cancer and you expect your insurance company to pay for it. But they dig into your medical records, discover you had asthma as a kid, claim you had a heart attack was a pre-existing condition, and then refused to pay.

Folks, that's not health insurance, that's a scam. That's a scam. It has to end. And folks, today, my administration issued a new rule that would close the loopholes that allows these junk insurance plans to exploit Americans. Under our rule, short-term plans would have to be short term, that means four months or less, not three years. Insurance companies would also be required to provide a clear disclaimer upfront about what's covering and what is not covered instead of burying it in the fine print.

Second, we're cracking down on surprise medical bills, which I thought we had made progress on. You've already heard stories about people who choose a hospital that's in their insurance network, and they get a surprise bill for thousands of dollars because the hospital signed them an anesthesiologist who wasn't in their network without them knowing that.

In January 2022, we ended surprise medical bill, and so hospitals that are in network can't send you a surprise bill for an out of network doctor that you didn't choose or even know he was consulting. And over the past 18 months, we protected 1 million Americans every single month from these surprise bills. But these are bills that cost people hundreds of thousands of dollars.

But get this, some healthcare providers are trying to get around the rule by putting in place a -- the rule we put in place by prevent -- to prevent these surprise billings. The travel industry figured out how to charge customers $90 a night at resort fees for hotels that aren't resorts. You think I'm kidding. Hospitals are trying to do something similar. By using different designations to charge their higher out-of- network rates, or charging hidden facility fees for going to a doctor's office in the building owned by the hospital.

And some hospitals are working with credit card companies to promote medical credit cards. Sounds good. Consumers can use these cards to borrow money to pay for the procedures and get charged but -- in the hospital, but they get charged higher interest rates as a result of that. It's wrong. It's wrong.

Today, my administration is closing these surprise billing loopholes. And they're all --

SANCHEZ: We've been listening to President Biden speaking at the White House, fighting through some audio issues at different points, it seemed. But the president focusing on his effort to lower healthcare costs for many Americans, eliminating what he described as surprise bills while expanding access to healthcare.

[16:00:00]