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White House Briefing as Senate Fast Tracks Biden's COVID Relief Plan. Aired 1-1:30p ET

Aired February 05, 2021 - 13:00   ET

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

[13:00:04]

JARED BERNSTEIN, MEMBER, WHITE HOUSE COUNCIL OF ECONOMIC ADVISER: But for now, what we need to do is get this package out there and meet the urgency at the moment.

QUESTION: Thank you for being here. I want to ask you about some of the criticism by one of your former colleagues, (INAUDIBLE) former top economic adviser to President Barack Obama. You were treasury secretary. He has acknowledged the bailout in 2009 by his own admission, he says, didn't go far enough. But he says that this $1.9 trillion proposal is so big that it risks progressive priorities in the future and could potentially undermine the economy next year. Is the Biden administration going too big?

BERNSTEIN: No. I firmly would disagree with that contention. By the way, I wouldn't call the other thing a bailout. That was the recovery act, and I think that also was an effective measure.

But I think that the idea now is that we have to hit back hard, we have to hit back strong if we're going to finally put this dual crisis of the pandemic and the economic pain that s engendered behind us.

With respect to Larry's point, I mean, one thing is just wrong, which is that our team is dismissive of inflationary risks. We've constantly argued that the risks of doing too little are far greater than the risk of going big, providing families and businesses with the relief they need to finally put this virus behind us.

Second, I want to quote Fed Chair Jerome Powell who strongly reiterated this view the other day, I think it was just a week or so ago, that inflationary risks are also asymmetric right now.

When asked about this precise tradeoff that you're asking me about, he said and I'm quoting, I much more worried about falling short of a complete recovery and losing people's careers and life that they built because they don't get back to work in time. I'm more concerned about the damage that will do not just to their lives but to the United States' economy, to the productive capacity of the economy. I'm more concerned about that than about the possibility which exists of higher inflation.

So, this risk management, this is balancing risks. And in our view, the risks of doing too little are far greater than the risks of doing too much. QUESTION: And just one more question. The Senate went forward with a measure that did not include an increase in the minimum wage. Has President Biden come to a determination that that's not going to be a part of the final package in order to get this passed, in order to get the Democratic support he needs?

BERNSTEIN: The president has consistently argued that a minimum wage, $15 an hour, is essential to make sure that people, many of whom -- millions of whom are essential workers, are not toiling at a minimum wage of $7.25 per hour, which is the federal minimum wage.

This idea that somehow -- and I've heard this in many questions -- that this idea that the minimum wage is somehow orthogonal to this package makes no sense to me. Because it is an efficient and effective way to raise the pay of people who are in the bottom end of this workforce, essential workers in retail trade, in healthcare, in sanitation, people who are keeping these economy going but consistently undercompensated for.

QUESTION: (INAUDIBLE) part of the final package?

BERNSTEIN: I'm not going to negotiate that from the podium, as they say. Wait, I have --

QUESTION: Very good.

BERNSTEIN: I have one other point I want to make though, getting back to the argument with Larry. This is key from my perspective as an economist who, throughout my career, has been motivated and concerned. I think the theme of my work has always been making sure that this economy, that our economy, the American economy provides ample opportunities for people from all walks of life, from all parts of the income scale, men and women, persons of color, communities of color have the opportunities they need to realize their potential.

And right now, there is deep unused capacity in this economy which is targeted by the American rescue plan. There are 10 million unemployed people. There are 2.5 million fewer women in the labor force than last year. As I mentioned, black and Hispanic unemployment rates are 9 percent. We've got a job market in stall.

The risk is a deflationary risk, which motivates us to go home or to go bigger to go home. And the costs of inaction of not addressing these risks are too steep and too costly to these vulnerable groups relative to the likelihood of overheating. That's the way I think about it.

QUESTION: Thank you. Just one more follow-up from the other Kristen. Is the White House's economic team, is there anyone on the team that is concerned that the $1.9 trillion is too big, is too much or is everybody in agreement?

[13:05:08]

BERNSTEIN: The White House economic team is in complete consensus on the urgency of the need for this American rescue plan and in complete solidarity on the calibration of this plan that it's of the magnitude to meet the challenges we face.

Again, with respect to Larry and his piece, it's just flat out wrong that our team is, quote, dismissive of inflationary risks. Any account -- Janet Yellen is our Treasury Secretary, okay? She knows a little something about inflationary risks and has tracked that kind of -- you know, she's tracked that economic issue forever.

I just quoted from you, from Jerome Powell whose job is to manage that risk against the risk of slack in the job market, against the risk of persistent unemployment, against the risk of people getting stuck in joblessness so they can't get out and get back into the job market against a risk of scarring in the economy, meaning not doing enough about current damages so that they become permanent damages and people can't get back in the labor environment. And businesses that should and would be viable on the other side of this crisis fail because we haven't taken the steps to get them through to the other side of the crisis.

So, the team has all of our oars in the water pulling in exactly the same direction on that.

QUESTION: (INAUDIBLE) last question. One other question on Larry Summers' criticism, not to beleaguer this point, but he also raises some questions about your future agenda. He notes that you will have committed 15 percent GDP with this though with basically no increase in public investments. Is this a concern going forward? Where will you find the money to build back better, as the president has promised?

BERNSTEIN: You know, I think the way President Biden talks about this is not just resonant but also follows an economic logic that I think is very strong, rescue, recovery.

The rescue plan, the American rescue plan gets this economy and the families and the businesses in it to the other side of this crisis by finally controlling the virus, producing and distributing the vaccine and giving people the relief they need to get to the other side.

But simply getting back to where we were is a bar that's far too low for the Biden-Harris Administration. And that's where building back better and the recovery plan comes in. These are structural changes. By the way, many of which, as the president have said, permanent programs should be paid for. So, these are structural programs that not in a cyclical sense dealing with getting to the other side of the crisis but deal with the structural challenges we face in climate, in education, in care, in poverty and racial discrimination.

And I am -- at infrastructure, I am wholly confident in this president and this administration's ability to go forth and make a strong case for rescue now, get folks, get the economy to the other side of the crisis, pursue the recovery, the building back better agenda. As I say, I'm confident about that.

One point and then I'll stop. Infrastructure, I get asked about this a lot. And the implication kind of the question is that, well, infrastructure of Democrat thing and you like had a hard time with that? Let me tell you a little act. I was testifying a year some time, a year or two ago in the House, and when I finished my testimony, a couple of Republicans, and I won't name them because this was a private moment, pulled me aside and said, hey, Democrat, come here. And they said, we want to do infrastructure, but we can't do it because our boss, President Trump, doesn't have a plan. The plan was really an asterisk

There are -- I guarantee you, there are politicians on both sides of the aisle who are champing at the bit to make investments in public goods in this country, to do an infrastructure bill that repairs not just maintenance but gets into clean energy, into broadband, into the kinds of investments that you've heard the president talk about. So I am confident that we work on rescue now, we'll get to recovery next.

QUESTION: Thank you.

JEN PSAKI, WHITE HOUSE PRESS SECRETARY: Thank you, Jared, so much.

BERNSTEIN: Thank you.

PSAKI: Well, people often ask me what my favorite part of the job is. It's when I get to call people like Jared Bernstein or Jake Sulivan and talk to them about questions and bring them in here as often as we can, and that's how it should work.

I have a couple items at the top just to go over and update you all on. First, sorry, let's see, at 3:00 P.M. this afternoon, Vice President Harris and Secretary of the Treasury Janet Yellen will hold a virtual roundtable with participants from local black chambers of commerce from across the country to discuss the importance of passing the American rescue plan.

[13:10:07]

Local chamber representatives, will share on-the-ground experiences during this crisis, ask the vice president/secretary questions and discuss how small businesses in their community are fairing right now and what they need.

A brief note on the tragic deaths of two FBI special agents earlier this week, acting Attorney General Monty Wilkinson will lead the delegation to both special agent Laura Schwartzenberger's memorial service on Saturday and Special Agent Daniel Alfin's memorial service on Sunday. At the request to the president, Homeland Security Adviser Dr. Liz Sherwood-Randall will accompany the acting attorney general to Sunrise Florida this weekend to attend both services.

Last item, tomorrow, the White House -- sorry, and I have a week ahead -- tomorrow the White House will launch a new effort for the president to regularly communicate directly with the American people. This was a question one of your colleagues asked earlier this week. There is a time-honored tradition in the country of hearing from the president in this way, from FDR's fireside chats to Ronald Reagan establishing the weekly presidential radio address. President Biden will continue that tradition and we expect it to take on a variety of forms.

The inaugural audition will be a conversation between the president and Michelle, who lives in Roseville, California, and lost her job at a start-up clothing company because of the pandemic. Look for that tomorrow on the White House digital channels.

Finally, next week, the president will be focus on engaging with bipartisan groups on the American rescue plan and other key priorities, including current vaccine distribution and national security. On Monday, he will virtually tour a vaccination center. On Wednesday, he will visit the Pentagon to meet with the secretary of defense. And on Thursday, President Biden will visit the National Institutes of Health.

So with that, Zeke?

QUESTION: Thanks, Jen. A couple questions for you. Why is the president going to Delaware this weekend?

PSAKI: He is from Delaware and has a home there, and is going to spend the weekend with his wife and family there.

QUESTION: All right. The guidance from the Centers of Disease Control Prevention, as you know, in the White House briefing just a couple hours ago, there is a big X over airplanes and people should avoid travel. Is there an exception to that policy?

PSAKI: Well, the key, Zeke, is ensuring that people don't take steps to make others vulnerable in our effort to get the pandemic under control. As you know, any president of the United States, Democrat or Republican, obviously takes Air Force One, a private plane, when they travel. Delaware is his home and so he looks forward to spending the weekend there and some time with his family.

QUESTION: Changing gears a little bit, we know that the president has been vaccinated. Has he been receiving it regular tests for the coronavirus while he's been here at the White House? We haven't seen since the transition sort of on his testing.

PSAKI: I'm happy to get back to you on that and provide an update. He has, as you know, received a second vaccination, which was done in public.

QUESTION: And a couple weeks ago, you were asked about the president's policies toward federal executions. Does the president plan to put in place a blanket federal moratorium again?

PSAKI: The president has spoken about his opposition to the death penalty in the past, but I don't have anything to predict for you or preview for you in terms of additional steps.

QUESTION: And finally, last one, I'm sorry. I'm not the --

PSAKI: It's okay, it's Friday. We have got to get it all out.

QUESTION: It's, you know -- we heard a different tone from the president. So when did the president recognize that continuing to negotiate with Republicans wasn't going to lead him anywhere and basically they have to embrace his proposal and get on board the train before it leaves the station? It seems the time for negotiation is over. It's now to get this passed.

PSAKI: Well, I wouldn't say that's an accurate characterization of his view or the view of any of us. Just to note, even as the package is moving through a reconciliation process, there is a great deal of time. The process enables time for negotiations through committee work, which will happen next week, and also the majority of reconciliation bills in the past have been bipartisan.

And so we certainly are hopeful that there will be opportunities for amendments from Republicans, amendments from others across the board to be a part of this process moving forward.

Go ahead.

QUESTION: Thanks, Jen. If I could actually just follow-up with you and just read some of what President Biden said today. He said, if I have to choose between getting help right now to Americans who are hurting so badly and getting bogged down in a lengthy negotiation or compromising on a bill that's not up to the crisis, that's an easy choice, I'm going to help the American people who are hurting now.

So has he resigned himself to the fact that he's going to have to use reconciliation and move forward without 60 votes from the Congress?

PSAKI: Well, he would use reconciliation, right? Congress would use that process. It's a parliamentary procedure. And just when a bill becomes a law moment here, if there is an opportunity to move forward with a bipartisan package at any moment, that can happen.

[13:15:05]

But, again, I believe it's 18 of 24, and I can double check this, of bipartisan -- of reconciliation bills in the past have been bipartisan. And a bipartisan bill has 52 votes, 54 votes, 56 votes.

But his point, on last point then I will go to your next question, is that we are not going to sit here and wait for an ongoing negotiation where, frankly, we haven't received an offer in return, right, or a response offer to what the president has proposed because the American people need the relief now.

QUESTION: Understood. But it seems as though he has resigned himself to the fact that there will not be 60 votes in the Senate for it to be able to pass.

PSAKI: Well, I think that the president listens to the American people who are, frankly, not too worried about what parliamentary procedure gets them relief, gets shots in people's arms and reopens schools. And he is certainly hopeful that there is opportunity for this bill, whatever form it takes, to have bipartisan support. And there is an opportunity to do that. History shows that's precedent.

QUESTION: If I could ask you on foreign policy, there is going to be a principals' meeting on Iran today. President Biden, so far, has not accepted, or has not moved forward with negotiations over an Iran nuclear deal. When is the timeframe for that to happen and does he think he'll be able to get Democrats on board with this, Jen? They were quite critical in 2015.

PSAKI: Well, first, and you asked this first -- this question first, and smartly, so on this meeting today, and I know that the interagency process is a little foreign in this building, in the government because of the last four years, so this is a principals' committee meeting. We're not going to confirm every one of these, but for the sake of educating everyone, not in this room but people who are watching, it's the -- our focus is broadly on the Middle East.

I'm sure Iran will be part of the discussion as it's an important issue and important priority for the president and for many of our partners and allies around the world. But this is not a decisional meeting. It's not a meeting where policy will be concluded. And it's not a meeting that the president of the United States will be attending.

So this is a normal part of the interagency policy process just as there are meetings about immigration, criminal justice, the economy every single day across government.

QUESTION: And on the topic of Iran, understood, given that you say Iran will be raised in this meeting, is there a timeline for when President Biden would like to try to come back to the table and get a deal under the Iran agreement?

PSAKI: Well, that's really up to Iran. If Iran comes back into full compliance with the obligations under the JCPOA, the Iran nuclear deal, just for people who don't like acronyms, I personally hate them, but the United States would do the same, and then use that as a platform to build the longer and stronger agreement that also addresses other areas of concern.

But that will be done in partnership with our P5 plus 1 partners and also through consultation with Congress. And I know I keep saying this, but we are still only two and a half weeks into the administration. So this is part of how the interagency process should work, where senior members of the national security team are meeting and engaging about a range of issues in the Middle East. And, you know, those -- but otherwise it's in Iran's court to comply.

Go ahead.

QUESTION: Thank you, Jen. One more foreign policy question. During President Biden's big foreign policy address yesterday, he didn't really mention Afghanistan. Why not? And where is he on the whole withdrawal of U.S. troops from that country?

PSAKI: Well, I appreciate your question because it was not meant to be a comprehensive foreign policy speech. And he will have a lot more to say about foreign policy and his approach to national security in the weeks ahead, but there were a lot of topics that weren't discussed because it wasn't designed to give the overarching Biden doctrine or give his comprehensive view on every issue globally, in part because there are interagency processes that will be ongoing, consultations with our partners and allies are key part of our policy development, as his consultations with members of Congress. So there is nothing I have in terms of an update as it relates to Afghanistan at this point in time, but he will have more to say on foreign policy in the weeks ahead.

QUESTION: Okay. What is being done about -- what could be done to provide COVID testing to migrants at the border? Because right now, the U.S. Customs and Border Protection is saying that they're having to catch and release some migrants without giving them any kind of COVID test before they're entering the community. So what is being done, what could be done?

PSAKI: Are you suggesting they're letting people in across the border without testing them, or tell me a little bit more.

QUESTION: They're being release. They're having to, because of the executive order that the president signed earlier this week --

PSAKI: Which executive, which one?

QUESTION: Rescinding President Trump's policy which stopped catch and release.

[13:20:00]

They're saying that they're having to provide -- they're having to release some migrants into the community before they know for sure that they do not have COVID, and they're worried that it could spread in the community. Is there anything being done at the federal level to make sure that this is not contributing to the spread of coronavirus in this country?

PSAKI: Well, certainly, the reason we put in a number of protections in terms of travel and otherwise is to keep the American people safe, but I haven't seen that report. I can't validate the accuracy of it, but I would certainly point you to the Department of Homeland Security for more specifics about what's happening at the border.

Go ahead.

QUESTION: Thank you. You continue to say that you're hopeful that Republicans will still get on board, even achieve bipartisanship. But we haven't seen movement on the Republican side. The fundamental differences remain the same. What gives you hope and optimism that the Republicans are suddenly going to come around here?

PSAKI: Well, I think, one, the vast majority of the American people support this package that would bring relief to Americans families, that would get shots in the arms of American people and would help reopen schools. Those are not Democratic ideals, they are not Republican ideals, they are American ideals.

So we still keep the door open to seek ideas, ideas to make the package stronger from any Republican or other Democrats who want to bring them forward.

QUESTION: Given the president's remarks earlier and his change of tone, it does seem that he is now okay if this goes forward with Democratic support despite those hopes and his despite his calls for unity.

PSAKI: Well, first of all, the president ran on unifying the country and putting forward ideas that would help address the crises we're facing. He didn't run on a promise to unite the Democratic and Republican Party into one party in Washington.

This package has the vast majority of support from the American public. This is something that people want. They want to see it passed. They want these checks to get into communities. They want this funding to go to schools. They want more money for vaccine distribution.

He is certainly not -- I wouldn't draw that conclusion. He is somebody who is keeping the door open. He will remain engaged with Republicans in the days ahead. As you know from covering the Hill, there are still several steps in the process here to move it forward.

We saw even some actions last night in Voterama, which is my favorite term of the week, where there was bipartisan support for ensuring the checks were targeted. There was bipartisan -- I know somebody asked a question about minimum wage earlier. There actually was bipartisan support on that, including from Senator Bernie Sanders for making sure that it wasn't implemented immediately. There is bipartisan support for helping small businesses.

There is disagreement, certainly, on the size, but there is a shared view that the American people need relief, and we are -- it is our responsibility to keep the door open to any good ideas that come forward.

QUESTION: And just on the minimum wage, do you feel that this bill is your best shot at getting this through, getting through a hike? Does it become more difficult going forward if you can't get it done now?

PSAKI: You know, I don't want to get ahead of where we are in the process, but the president believes that increasing the minimum wage is something that would help American families, and it is essential to helping people who are struggling and something that workers certainly deserve.

We will leave it to the Democrats and Republicans in Congress to see if this is possible through the parliamentary process of reconciliation.

Go ahead, Karen.

QUESTION: Jen, to follow-up on that and the quote that Kristen read but I also want to come back to a vaccine question.

PSAKI: Sure.

QUESTION: The president said it's the easy choice between getting help to Americans who are hurting or getting bogged down in negotiations. What's he's definition of bogged down? What's a timeline would be likely? For him, he's been involved in negotiations for many years. What does bog down mean?

PSAKI: It means bogged down. I'm not going to set a timeline and I understand the desire and interest in that. But urgency means he is pleased to see that members of Congress, that Leader Schumer that and Speaker Pelosi are moving this forward rapidly, that there is a fire under the bellies, in the bellies of people in Congress to get this package through, move it through the process over the coming days and weeks.

But, that's up to them on the timeline. He just is going to continue to argue for urgency because the American people, until they know when they're going to get checks, until they know when schools are going to get funding, it's hard for them to plan.

We know that there is timeline that are coming up. One, we're at the brink of spending out the package from December. 600 billion of that has already been spent out and a lot of it is going to be spent out in the coming weeks. There is going to be a need for additional relief in all of these categories, so, hence, the urgency. But I don't have an exact deadline or due date other than let's keep moving.

QUESTION: Can I ask about vaccine?

PSAKI: Sure.

QUESTION: We're hearing so much on our reporting about frustration across the country with people who were trying to navigate the system.

[13:25:00]

They're signing up on multiple websites through multiple means to hope to win the lottery and get a vaccine appointment. What is the federal government doing right now to address the challenge for so many Americans, and why can't there be a better system, so it's easier to just sign up and wait your turn?

PSAKI: We agree with you completely. That is completely confusing, it has been around the country, in states and localities. The American people who are just trying to do their jobs, take care of their kids, home school, balance everything, everybody is balancing right now, just want to be able to go on a website and sign up for their vaccine.

Now, one of the steps we're taking, we've announced earlier this week is, of course, working with pharmacies to distribute about a million doses in order for Americans to be able to do that in certain communities. That's --obviously that number is going to be increased over time. That's one way.

There are large vaccine plans through FEMA to set up large vaccination sites. That is something that is starting to be underway this week.

But our focus is very much on increasing communication, ensuring, exactly as you said, that the American people know how, when they can get their vaccine. And we fully agree there has been a lack of communication, confusion, and we are trying to work out of that hole, but we're only two and a half weeks in here. So we're just -- it's in process.

QUESTION: There could be healthcare.gov but for vaccines. Jeffrey Zients obviously has a lot of experience with that. Could you do a federalized system?

PSAKI: As does Andy Slavitt, some people back from the healthcare.gov days. Look, I think there are a range of options under consideration. I have not heard them suggest that. But they are very open in discussing every day ways to make this accessible, clearer to the American people, and they just want to do it in a way that's effective and efficient and reaches local communities where people are trying to get vaccinated.

Go ahead.

QUESTION: Yes. I know you just saw the (INAUDIBLE) refrained from giving a timeline on the COVID relief bill and its passage, but outside an hour ago, Speaker Pelosi said, absolutely, when asked if the COVID stimulus would pass by March 15th. Does that -- do you also share that confidence that it would pass by mid-March when those unemployment benefits run out?

PSAKI: Never doubt Speaker Pelosi on anything she says. That's kind of the lesson I've learned in Washington. She is a powerful and fierce force up there.

You know, we're not going to set a timeline from here. It is a bill that would be passed by Congress, of course. Speaker Pelosi is, you know, the Speaker of the House, so, certainly, I would -- we would defer to her, and the president looks forward to signing the bill when it comes to his desk.

QUESTION: Do you feel an urgency to get it passed by then?

PSAKI: We feel an urgency to move it forward as quickly as possible. And I think what you're referring to kind of the unemployment cliff that will hit in March. But, certainly, we would like to see action as quickly as possible, as we've been saying, but I'm not going set a new deadline from here. Obviously, we're working close to Speaker Pelosi and Senator Schumer -- or Leader Schumer, sorry, every day.

Go ahead all the way back.

QUESTION: Well, thank you. Thank you very much, Jen, happy Friday.

PSAKI: Happy Friday.

QUESTION: Two (INAUDIBLE) questions, if I may.

PSAKI: Sure.

QUESTION: Engaging with China, yesterday, President Biden said he would work with allies at Congress. However, also on yesterday, French President Macron said, quote, consideration to join all together against China, this is a scenario of the (INAUDIBLE) hostile conflict to elevate. This one to me is counterproductive, end quote. So, what exactly does President Biden expect from their U.S. allies?

PSAKI: From our U.S. allies? Well, we're going to work in close consultation, of course, and partnership with our U.S. allies on a range of issues. We talked about Iran a little bit earlier in the briefing. Of course, strategic competition with China is part of that.

You know, but I can only really speak for what our policy is here from this White House and the United States. This administration sees the United States as engaged in strategic competition with China and technology is a central domain of that competition. We should have no illusions of China's objectives, which were to undercut America's longstanding technical advantage and to displace America as the global leader in cutting edge research and development and the technologies and industries of the future.

The National Security and Economic Consequences allowing that to happen are simply unacceptable. That's certainly what the president conveys in his conversations with our partners and allies. But this is a major reason why the president is committed to making major investments in science and technology research and development, as well as supply chain security, and we will leverage the full breath of authorities to us to protect the U.S. national and economic security interests.

That's our position here and obviously he will communicate that and to allies and partners as his having engagement with them. Do you have a second question?

QUESTION: Actually, Asian-American women actually have the highest jobless rates for the past six months.

[13:30:05]