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Economy Roars Back, Beats Analysts' Predictions with 531,000 New Jobs; Rep. Nancy Pelosi (D-CA) Meeting with Moderates, Trying to Resolve Concerns over Lack of CBO Cost Estimate; Thousands of NYC Cops, Firefighters Stay on Job After Mandate Kicks In. Aired 10-10:30a ET

Aired November 05, 2021 - 10:00   ET

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

MARTY WALSH, LABOR SECRETARY: Investments in those childcare facilities, and part of that also is lifting up wages and training, yes, from the federal government, it will.

[10:00:11]

ERICA HILL, CNN NEWSROOM: And that will pay for those increased salaries?

WALSH: That will help with the salaries, and it is a big problem. I mean, I've been around the country now. I've been all over the place. And when I talk to childcare facilities, what they do is they usually -- when they have great staff who they love, they lose them to school districts and other places. So, it is about increasing the salaries for those teachers.

HILL: Labor Secretary Marty Walsh, thanks for joining us this morning.

WALSH: Thank you.

A good Friday morning to you. I'm Erica Hill in New York. Lots to cover on the breaking news front on this Friday morning, including a lot of action happening in Washington, Jim.

JIM SCIUTTO, CNN NEWSROOM: That's right. I'm Jim Sciutto in Washington. A very busy Friday morning.

We begin with job numbers out this morning, well above forecasts. President Biden is expected to address the nation on two fronts, those booming economic numbers, 531,000 jobs added in October, as well as revisions upward in both September and August. This is key because painted quite a bleak picture around the time about slowing economic growth, but revisions there and a big month in October. The president is expected to address that.

Also expected to address events up there on Capitol Hill. Erica, as you know, some big votes coming today, does he move his agenda forward?

HILL: Yes. There is a lot going on there as we're looking at what's going to happen with both of those bills. Let's bring in our colleagues, Christine Romans, Chief Business Correspondent, and John Harwood also at the White House.

As we look at what is happening right now on Capitol Hill, what we're getting in terms of those numbers this morning, there is a lot for the White House to be happy about this morning. Christine, break these numbers down for us. What does this tell us, especially those revisions that we saw for August and September?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes, it's important to look at those. Remember how concerned we were about the variant, right, holding back this summer hiring lull that we saw. Well, in fact, it wasn't as bad as we thought. When you look at August, at first, the government said there were 366,000 jobs created in August, they've revised that to 483. That is a really strong month of jobs gains.

You look at September, they have said 194,000. We were disappointed by that number. It showed sort of this American engine of job creation slowing. That was revised too to 312,000.

These, in normal times are very, very big, big numbers, and then another 531,000 in October. It paints the picture of American employers who are aggressively hiring.

And you heard the labor secretary talk about how broad based the hiring was. It was hiring in bars and restaurants, it was on construction sites, in factories, in laboratories, in office buildings, I mean, up and down the spectrum, really, you saw hiring here.

A couple of economists have told me they think that now as we get regular in-person school under way and we move into the fall, that they're hoping you'll see this trend continue to even strengthen.

SCIUTTO: John Harwood, we've had a few Fridays in the last couple of months where the president was prepared to speak to talk about great job numbers, and he didn't get them in August and September, although now those numbers have actually been revised up. Now he does a big number for October as well. What do we expect to hear from the president today?

JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: Jim, we expect to hear the president celebrating what is probably the best day of his presidency since the American rescue plan passed in March. This is a confluence of events here that I think we should put in perspective, especially given all the discussion we've had about those bald election results for Democrats earlier this week.

COVID and the associated economic dislocations of COVID drove a lot of the public discontent that was behind those electoral defeats. Think about what's happened today. You have got the news about the Pfizer drug. You have got these better-than-expected jobs numbers, which indicate the economy is slowly getting back to normal, not all the way there, but getting back to normal. And then you have got the prospect that the Congress may advance both parts of the agenda today in the House of Representatives. All of that is potentially a formula for a different picture in 2022 for this White House. The key is getting past the pandemic.

Mark Zandi, the Moody's economist, tells me that, if in fact we get past the pandemic, he's looking at 1 million job a month reports like we saw in July, and the economic growth in the fourth quarter. It slowed in the third quarter to 2 percent. Analysts are looking, Goldman Sachs is looking at 4 percent for the fourth quarter and 4 percent for next year. That is strong growth, and that's something that Joe Biden certainly is going to point to today.

HILL: Strong growth is great for the economy.

[10:05:01]

More jobs are great, as we know, getting more people back to the workforce is great.

Christine, the reality though for a lot of families and Americans as they look at this, they could say, okay, things are improving but I'm still seeing significant inflation and my money doesn't go as far as it used to. What's the impact?

ROMANS: It's such a great point. Both things are true. The economy is bouncing back from the COVID crash, and prices are rising. I mean, you have record highs in the stock market. You have home equity for families who own their homes or is -- I mean, the housing market is on fire and is expected to be maybe even into next year.

But when you go every week and put gas in your gas tank and it costs $16 more this year than last year for a standard sized tank, that is a real feel economic indicator every week that is something -- we go to the grocery store and you see prices are rising at the grocery store as well.

Now, keep in mind, last year, prices collapsed because the economy collapsed. They're coming back because the economy is coming back. But every week, people feel those inflation pressure points, and that, quite frankly, sours their mood on the overall economy.

Next week, we're going to get new government inflation numbers, you guys, so we'll have a better picture of where things are headed next week too.

HILL: Christine Romans, John Harwood, I appreciate it. Thank you.

Also with us, CNN Chief Congressional Correspondent Manu Raju joining us live from Capitol Hill.

Pretty big day there potentially. House Speaker Pelosi meeting with key moderates right now. Do we have a sense of how many holdouts there still are this morning, Manu?

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Well, there are enough to scuttle the bill if they decide to continue to hold out. In the remaining hurdle, I'm told, is about whether there is going to be an analysis by the nonpartisan Congressional Budget Office, to provide an estimate of how much this bill would cost. Now we know it's going to be roughly $1.9 trillion. That is the estimates that are essentially informal (INAUDIBLE) been some analysis from a separate nonpartisan committee. They looked at the tax portions of the bill would account but not the entire cost.

And that is what the demand is of some of these moderate members. They want a full understanding of the impact on the budget, the impact on the economy before they are going to vote yes. But there's a problem. It's going to take days, potentially even weeks to come up with that.

So, right now, behind the scenes, Nancy Pelosi along with some White House officials have been in negotiations and talks this morning to try to resolve some of those concerns. They have pointed to some analysis that the White House has provided showing that the bill, they're arguing, would be essentially fully paid for by a range of tax increases. Some moderate members, like Congressman Ron Kind, who emerged from that meeting, told me that he is a yes. That is -- essentially his concerns have been resolved.

But another moderate, Jared Golden of Maine, I asked him, will you vote for this if it's on the floor today, he said not without a CBO score. Another congressman, Kurt Schrader, just emerged, told reporters that this issue simply has not been resolved yet, and there is simply no margin -- very little margin for error for the speaker. She can only afford to lose three votes. She's already potentially lost one with Jared Golden. Will others continue to hold out? That remains the big question.

But I'm hearing also, guys, that the other remaining sticking points, including how to deal with immigration and work permits for undocumented workers, that issue has been resolved on that end. So, they can get this issue but how the analysis and the budget impact will be, perhaps they can get to a vote. But, still, negotiations are ongoing. Guys?

SCIUTTO: I imagine there's some impatience on the Hill. I can sense it from here. Manu Raju, good to have you on. Thanks so much.

Let's talk about all this with CNN Anchor and Chief Washington Correspondent Jake Tapper. It's great to have you on, Jake. And I wonder, for folks at home who either have not been following the day- to-day on this or have lost patience themselves following the day-to- day on this, big picture, do you sense the logjam breaking on the Hill among Democrats on both the Build Back Better agenda but also the bipartisan infrastructure bill?

JAKE TAPPER, CNN CHIEF WASHINGTON CORRESPONDENT: Well, the votes are there for the bipartisan infrastructure bill. That's not the issue. The issue is that the progressives won't vote for the Build Back Better -- I'm sorry, the progressives won't vote for the infrastructure bill if the Build Back Better act doesn't pass first. And right now, the moderates are very seriously considering not voting for it. The votes right now at 10:09:14 A.M. East Coast time are not there, according to my sources. My sources say the same thing that Manu Raju's sources say. The votes are not there right now.

Now, does that mean they won't be there in 15 minute, an hour, two hours? No. Maybe they will. The test will be does Pelosi actually butt the Build Back Better act, the big social safety net spending bill, with obviously other provisions to combat climate change, does she put it on the floor for a vote?

[10:10:01]

If she puts it on the floor for a vote, she has the votes. So, that's what we have to watch. But members of Congress are being told strap in for a long day, and that suggests that they don't have the votes right now. Pelosi, I think, doesn't go to Scotland until Monday, so it's possible they'll work through the weekend. But as of now, no, votes aren't there.

HILL: Just real quickly on that point too. Jim and I have talked about this ad nauseam over the last several weeks. I know you have, too, Jake. But these constant deadlines, and you hear from lawmakers, well, that's the only way we get it done. We have to put a deadline out there because it lights a fire. I wonder, it seems this did not light enough of a fire as of this morning that very clear messaging from Speaker Pelosi and even these efforts from the White House to put out their own look at the funding there.

TAPPER: It hasn't worked as of yet, that doesn't mean it won't. It hasn't worked as of yet through these deadlines. Look, voting for -- voting for the infrastructure package, which is a bipartisan bill that passed the Senate with, I think, 19 Senate Republican votes, that's not a particularly controversial provision, controversial vote. But voting for this $1.7 trillion spending package could be controversial for frontline members of Congress, Democrats who are in swing districts, Josh Gottheimer in New Jersey, Abigail Spanberger in Virginia. And there is concern.

And, look, asking politicians to take brave positions or take risks is not a winning proposition. And this is a risky package. Nobody knows how it will play out with the voters. Nobody knows how successful it will be by election time next year.

SCIUTTO: Yes. And the risk made clear to Democrats on Tuesday this week.

All right, airing tonight on CNN, a special report you've been working on, this, of course, on the continuing investigation into the January 6th. A key question here, you interviewed Republicans and asked them this question about President Trump, possibility not only that he runs again, which personally I think is quite strong, but that he could win. Here's a clip from it, and I want to get your thoughts.

(BEGIN VIDEOTAPE)

ALYSSA FARAH, FORMER WHITE HOUSE COMMUNICATIONS DIRECTOR FOR TRUMP: The nightmare scenario is this, and it's not too far out of the realm of possibility, which is Donald Trump is running for president again, he will likely be the nominee of the Republican Party, assuming nobody attempts to challenge him credibly.

Joe Biden is going to be 82 years old by 2024. Many around him don't think he's going to run again. There is very much a scenario where Donald Trump could be president again. And this is a man who's challenged our institutions near to breaking point.

TAPPER (voice over): And for those who have worked with Trump, the fear is not just his undermining American democracy but once back in the White House also undoing the American experiment.

You think that he will try to impose some form of autocracy?

FARAH: I think that he absolutely would. There were things he wanted to do when he was in power the first time that were well beyond the scope of what the U.S. president should be able to do, but oftentimes it was simply like the motivation of hoping to win re-election that kept him from doing things. It's very different in a second term, and I think that's what scares me the most.

TAPPER: Can you give me an example?

FARAH: Whether it's weaponizing the Justice Department against political opponents, whether it's, you know, going after the free press, he would certainly be open to using the military for political reasons as well.

TAPPER: That's terrifying.

(END VIDEOTAPE)

SCIUTTO: It's terrifying. She's not alone. I spoke to a Republican yesterday who said the same thing. He worries about the republic falling if he were re-elected. What did the others have to say? Was this a minority viewpoint?

TAPPER: Well, first of all, let me note, this is a documentary not just about January 6th. January 6th was the most visible manifestation of Donald Trump's attempt to overturn the election, undermine democracy and disenfranchise the American people. But the documentary is about the entire campaign, months-long campaign, and we only interviewed journalists and Republicans and Republican officials in this documentary to a person are expressing the concern about Donald Trump will try again to undermine the election, and he will be better situated to do it.

So, we talked to election officials from Arizona and Pennsylvania and Georgia. We talked to Republican members of congress, like Anthony Gonzalez and Liz Cheney and Adam Kinzinger, to talk about how he almost stole democracy last time, how he could do it again without violence next time. And, yes, they are very afraid that he will attempt to do it. And whether he does it -- whether he wins, you know, in actuality or whether he tries to steal it and succeeds, then you heard Alyssa Farah express the concern about what then happens, not just another Trump term like what we had, what we just experienced, but something where he is not afraid of anything.

[10:15:06]

Re-election was a concern of his, and what he would then do. And that's the White House communications director for Trump expressing those fears.

SCIUTTO: She used the word autocracy. I mean, it's remarkable. These people know him well. Jake Tapper, thanks so much. It's truly important work.

A reminder, you can watch the new CNN special report tonight. It's called Trumping Democracy, an American Coup. It begins at 9:00 Eastern Time.

HILL: Still to come this hour, New Yorkers have a huge shortage of police officers because of the city's vaccine mandate and warnings from union leaders. So, what's the reality this morning? It's a little different.

Plus, opening statements underway in Brunswick, Georgia, where three white men are facing murder charges in the death of 25-year-old Ahmaud Arbery, a black man, shot while he was running. Already, the judge making two key decisions this morning in terms of evidence. We'll tell you what's allowed in and what's not.

SCIUTTO: Another big COVID news. Pfizer has announced encouraging results from its trial of a COVID-19 pill for treating those infected. Could we get another tool in the pandemic soon? The latest on their next request for emergency use authorization, next.

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[10:20:00]

SCIUTTO: This morning, after concerns of a big walkout over New York City's employee vaccine mandate, a very different reality playing for the NYPD. As of Tuesday, the department announced that just 89 of roughly 35,000 officers on the force are now on leave without pay for not complying with the mandate.

Joining me now to discuss, NYPD Commissioner Dermot Shea. Commissioner, thanks for taking the time this morning.

COMMISSIONER DERMOT SHEA, NYPD: Hey. Good morning, Jim.

SCIUTTO: So your overall rate of having one shot, 86 percent, is a pretty good figure. That does mean that there are others who have requested exemptions and still waiting for their cases to be considered. I suppose my question is what happens to the others and is time running out for them to comply?

SHEA: Yes. So, 86 percent is what we hit yesterday. That's the most recent number. We do have about 6,000 uniform and civilian members that have requested accommodations. That's the next level, Jim. So, as those are pored over, our office of employment discrimination with attorneys reviewing each case individually, and then they will be either pushed into, yes, the accommodation stands or it's denied and then there's an appeals process.

So, I anticipate this is going to take some time to play out.

SCIUTTO: Okay.

SHEA: While that is all happening, those individual members are subject to testing.

So, the most recent number is we have about 130 uniformed members that are out without pay. Obviously, we'd love to have each one back.

SCIUTTO: So, have those numbers, as those cases are being considered -- and it's an important point you make, that while they're being surveyed, they're still serving but being tested. Have they impacted the police at all?

SHEA: Well, the reasonable accommodations are just coming to work and doing their normal jobs. So, that's no impact. The impact comes from the uniform and civilian members that have not requested an accommodation and were put on leave without pay.

It's manageable. You know, we're able to move resources around, stop training in certain areas, do things behind the scenes, but, clearly, Jim, you know, anytime you lose people, it's going to have an impact somewhere. Right now, it's manageable. Again, we're trying to get those people back to work. We're providing free vaccinations. But any challenge that arises, we'll meet it and we'll keep moving forward.

SCIUTTO: The newly elected mayor of New York, Eric Adams, says he's going to revisit the vaccine mandate. Do you think that's a good idea?

SHEA: I'll leave that to him. I mean, you know, I haven't heard him say that. 86 percent, I think, right now is vaccinated. I think that's the takeaway. That's the good news. I've been encouraging from the beginning everyone to get vaccinated. You know, it's only about three weeks ago that we lost an officer to COVID. I think it's important for a lot of reasons. So, you know, certainly, that's within his discretion to do that, and, you know, the next police commissioner will deal with that one.

SCIUTTO: Right. And I know that will be when your term is coming to an end.

Let's get to crime figures. Murders and shootings and shooting victims in New York City, I believe we can put some of these numbers up on the screen, they're actually down in October compared to October of 2020, the overall index of crime at 11 percent. I mean, this is a downward trend compared to other cities around the country. Are you doing something different that you see having success?

SHEA: Well, we're always doing something different. We're always modifying what we're doing, Jim. I can tell you, you know, the positives here are five months in a row now we've been able to knock shootings down from last year's level. Any way you slice that, that's something positive to take away. I can tell you it was awfully hard to do that in October between downward pressure on Rikers again, between retirements and many other factors, but we did, five months in a row now.

[10:25:00]

I can tell you, though, Jim, the honest truth is that there is not a single, not one, person that wears an NYPD uniform that is happy with the level of violence in New York City now. So, there are still challenges.

SCIUTTO: I get it. And I --

SHEA: But there is an awful lot of work being done to attack gangs, to take guns off the street, to work with prosecutors. So, headway being made, but it's still a long fight ahead.

SCIUTTO: And I saw that when I went out on patrol a couple nights this summer with NYPD officers.

I do want to ask you finally about a case that the Supreme Court is now considering. Earlier this week, their conservative justices seemed to signal that the court may rule against New York's law, which requires proper cause before issuing a license allowing people to carry a gun outside their home.

You've been very public. You've said that adding more guns to our streets is not the answer to reducing violence. If the Supreme Court were to overturn this law in New York, would that make the city safer or less safe?

SHEA: You know, guns are probably the number one issue in New York City. There's no doubt. And I think many cities would say the same thing. And, Jim, a scenario where we're going to make it easier and proliferate even further guns into the hands of citizens concerns us greatly.

So, you know, that's been opposition on that. We have some tough gun laws here. You know, we tend to think that we are very progressive in how we police and how we reform and how we keep New Yorkers safe. And this particular decision, you know, worries us if it goes the wrong way.

SCIUTTO: Well, Commissioner Dermot Shea, we know you and the officers who serve under you got difficult days and nights every day, so we wish you safety and we wish you good luck. Thanks for joining us this morning.

SHEA: Have a great weekend, Jim. Thank you.

SCIUTTO: Thanks.

HILL: This just in to CNN, exclusive video, a former Justice Department Official Jeffrey Clark, you see him there, arriving this morning just moments ago for his interview with the January 6th committee. Clark, of course, was integral to helping then-President Trump in his efforts to overturn the 2020 presidential election and wrote that memo trying to make a legal justification for then-Vice President Pence to refused to certify the results. Clark didn't answer CNN's questions as he walked in today. He did not say whether he plans to take the Fifth. The chair of the January 6th committee says he also, Bennie Thompson, just signed about 20 more subpoenas for that investigation. Those subpoenas, Jim, we've learned, could go out as soon as today.

SCIUTTO: Still ahead, opening statements underway in Brunswick, Georgia, where three men face murder charges in the death of 25-year- old Ahmaud Arbery. How, the judge's decision this morning to allow evidence of a license plate with a confederate flag on it, how that could sway jurors, next.

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