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Oak Fire rages in California; Northeast Swelters from Heave Wave; Consequential Days for U.S. Economy; GOP Looks for New 2024 Candidates. Aired 9-9:30a ET

Aired July 25, 2022 - 09:00   ET

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

[09:00:33]

POPPY HARLOW, CNN ANCHOR: It is the top of the hour. Good Monday morning, everyone. I'm Poppy Harlow. Glad you're with us. Jim has a well-deserved day off.

And we are following several major stories this morning.

In California, a huge raging wildfire has scorched more than 15,000 acres since Friday. Officials say they have no containment on what is now the Oak Fire burning near Yosemite National Park. Right now, more than 6,000 people have been evacuated. You have firefighters facing this excessive heat warnings and temperatures, hitting record highs across the country, at the same time as they're trying to battle this. We'll have a live report on the ground in just a minute.

Plus, troubling signs for the U.S. economy. Second quarter GOD, how much the economy grew, we'll know that in just a few days. And it's expected to shrink as President Biden faces several economic challenges, inflation, continued supply chain issues, gas prices high but coming down.

All of this overshadowing a 3.6 percent, very low unemployment rate. Several key economic indicators expected this week. We'll talk about what's ahead.

And, Republican Congressman and January 6th Committee Vice Chair Liz Cheney says a subpoena for Ginni Thomas, the wife of Supreme Court Justice Clarence Thomas, is not off the table. Anxiety is growing among Republicans over the committee's revelations about former President Trump and many in the party are now encouraging other Republicans to jump in the 2024 race for the White House.

Let's begin, though, with the wildfire in California.

Our national correspondent Camila Bernal is at the scene of the Oak Fire in Mariposa County.

Is it still this morning zero percent contained?

CAMILA BERNAL, CNN NATIONAL CORRESPONDENT: Unfortunately, it is, Poppy, despite all of the efforts, despite additional resources, more than 2,000 people working on this fire, zero percent containment. I'm standing in one of the areas that makes part of those more than

15,000 acres that are already burned. So, what's left behind is a lot of these hot spots. The ash and the very, very thick smoke. Thankfully, though, temperatures are lower, so this is very helpful for firefighters. This is the time when they try to make progress because in the afternoon it gets really difficult for those firefighters as the temperatures increase.

Cal Fire is saying that it's been difficult for a number of reasons. First of all, the drought. They say there's so much dry material in this area that it makes the flames spread quickly and so that's challenging for those firefighters. They say the afternoon temperatures are also a really difficult time in the day for those firefighters. And then they say this terrain, it is very steep, so it's hard to get to those flames in some cases.

We've seen round after round of fire retardant being dropped throughout the day. And yet no progress. So, that's difficult. And then they say that it's hard to get to the people in this area. A lot of them live in big lots, say five acres of land. It's surrounded by forest. A lot of it is overgrown and dry. And so what authorities are saying is, look, if you're under an evacuation order, please get out because it is going to be very difficult to come back and get you after those firefighters or those sheriff deputies have already gotten people out of this area.

Unfortunately, though, I have talked to people who say, look, I just don't want to leave. I want to stay here. I want to protect my property. Someone I met yesterday even had his own fire truck. And so just people not wanting to leave their house and their animals behind. But the reality is that there's still a lot of work to be done here as we're still at zero percent containment.

Poppy.

HARLOW: So much work to do under just the worst of conditions for them.

Camila Bernal, thanks to you and your team on the ground.

More than 60 million Americans, talking about this record heat, are under heat alerts this morning as temperatures in the northeast could surge as high as the upper 90s again today. We certainly felt it all weekend. Several cities including Boston and Philadelphia saw record heat yesterday. The heat wave turned deadly right here in New York City. At least one person died from heat exposure over the weekend.

Our Palo Sandoval joins me in New York, Chad Myers, our meteorologist, is in the CNN Weather Center.

It is so hot and it's dangerous for people that don't have air conditioning, for the elderly, for children in certain circumstances. And this is not expected to let up. How are things where you are?

POLO SANDOVAL, CNN CORRESPONDENT: Poppy, that's one of the reasons why people did anything they could over the weekend to try to stay cool. Cooling centers were open, not just here in New York City, but throughout the region to make sure that those who perhaps don't have air conditioning at home could at least have a cool place to actually get through this latest heatwave.

[09:05:07]

Now with the forecast calling for no more record-setting temperatures in and around the area today, that is certainly being met with some relief because it was a scorcher of a weekend. Just look at the numbers that were logged from over the weekend, just not far from here, in Newark International, 102 degrees. That was the fifth consecutive day that that particular observation station saw triple digit heat. Five straight days in a row. That is the longest stint since they began to take -- the National Weather Service started taking those records at that location in the 1930s.

Here in New York City, 98 degrees, basically tying a record. And in Boston, 99. That's one of the reasons why that heat alert that was in place late last week was extended through yesterday. In fact, still in place today because of that combination of high temperatures and humidity levels. Still going to pose a threat for people in Boston there.

But, look, what you hear from New York City's mayor, Eric Adams, basically saying that it seems like people heard the warning to stay cool and to take care of each other because they did not see a significant increase in heat-related -- people suffering heat-related illness at area hospitals.

(BEGIN VIDEO CLIP)

MAYOR ERIC ADAMS (D), NEW YORK: It appears as throughout though the media and through other notifications people are taking the notice seriously. We only had one heat-related death that was reported thus far. But we opened the cooling systems. And so I believe people are really responding.

(END VIDEO CLIP)

SANDOVAL: So, finally, with a potential break on the horizon, as you're about to hear, there are still those heat related advisories. They're in place in Boston, Philadelphia, and here in New York City as well as the temperatures combined from the humidity from area thunderstorms will likely make for still a fairly high heat index.

Back to you.

HARLOW: Polo, thank you.

And, Chad, to you.

I mean I was reading this morning that this is expected here in New York City to last for the week, right? Is that the story across a lot of the Northeast?

CHAD MYERS, AMS METEOROLOGIST: You know, the cold front does come through today with some thunderstorms. So we're not going to be running close to 100 over the week at all.

HARLOW: Good.

MYERS: I mean 100 in Boston, though, at Logan, near the water, I mean, that's really telling you something, that this heat really just - just had no letup this weekend.

Across the cape, temperatures were in the middle and upper 80s to lower 90s. Now, today we're still going to be one more day of heat, but that cold front should probably arrive in New York City somewhere around 4:00. A little bit later in Boston. So we still have those heat advisories for today proper because it is still going to be hot. But it's raining across parts of Skenectoty (ph) and Saratoga Springs. That rain is headed to the east and that's what the cold air behind it is pushing this humidity up, pushing it away and we will be much better for the rest of the week.

Some of these storms could be severe. Some of these storms could slow down the airports. Some of the storms could be right on top of New York City, Boston, Philadelphia, with a lot of lightning around. Keep that in mind if you're outside walking around doing whatever. But notice that we are in the 80s, not the 90s or even approaching 100. In fact, the 100s have shifted out towards the Pacific Northwest. Heat advisories, excess heat warnings, temperatures well above 100 again from Portland to Medford and all across the Pacific Northwest, Poppy.

HARLOW: OK, Polo Sandoval, Chad Myers, thank you both very, very much.

And to the economy. Growing fears this morning again that the United States could be headed toward a recession. You've got new consumer confidence numbers out tomorrow. The Federal Reserve signaling another rate hike when they meet all of this as we're waiting for second quarter economic growth numbers. GDP expected to shrink.

Our chief business correspondent Christie Romans back from a well- deserved vacation just in time for all of this data.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes. I know.

HARLOW: It's such a big week.

ROMANS: It's a really big week and I think it's important because so many of the guideposts along the way here are conflicting. You know, pointing to a recession on the one hand. But you look at the labor market and things look fantastic still for the labor market. So this will give some clarity.

The Fed is going to likely raise interest rates this week. And we expect, you know, a 75 basis points, three-quarters of a percentage point. That's something that's really important for consumers I think here. This is the Fed, in the midst of trying to beat back inflation at a 40-year high, and it means your borrowing costs are going to rise.

HARLOW: Yes. ROMANS: So, there is a consequential event this week, which will be higher interest rates for you. And then you mentioned, Poppy, that Thursday, that first reading of second quarter GDP, there's a possibility this is a negative number. Two consecutive quarters of negative growth. That's one of the factors that can be used to determine a recession.

There is a vigorous recession guessing game happening in the United States right now.

HARLOW: Yes.

ROMANS: We won't know for sure probably until it's already over, by the way. There isn't a yes/no button at the White House or on Wall Street that says this is or isn't a recession.

HARLOW: Right.

ROMANS: That's determined by maybe economists later on.

HARLOW: Yes. And, I mean, Yellen, Treasury Secretary Yellen, this weekend, yesterday, said, you know, we're not in a recession.

ROMANS: Yes.

HARLOW: We're not headed there. But it actually matters so much how people feel. And you have those consumer confidence numbers coming out tomorrow.

[09:10:03]

At the same time a gas continues to fall.

ROMANS: Yes.

HARLOW: Six straight weeks of falling gas prices.

ROMANS: That's right. And people feel pretty lousy. And I'm pretty sure the consumer confidence numbers are going to show that.

But, you know, our colleague, John Berman, asked Brian Deese at the White House this morning, you know, what is the state of the economy? And he was pointing to those lower gas prices and other factors. And he said resiliency.

Listen to how he put it.

(BEGIN VIDEO CLIP)

BRIAN DEESE, DIRECTOR, WHITE HOUSE NATIONAL ECONOMIC COUNCIL: We have seen extraordinary resilience in this economy due largely to the resilience of our business and our consumers, but we need to take more action right now to make things more affordable.

(END VIDEO CLIP) ROMANS: And he's talking about prescription drug issues and a bill in Congress to try to help chip manufacturers do more domestic production.

HARLOW: Huge deal, that, though.

ROMANS: There are some issues that are - that he's talking about there.

But, I think the bottom line is people don't feel great still about the economy. And you tell them the gas prices have been falling for six weeks. They say, yes, but they're still higher than they were last year.

HARLOW: And then you go to the grocery store and you look at -

ROMANS: That's right. That's right.

HARLOW: In shock, as I did yesterday, as my kids are throwing things in the cart and I'm saying we don't need all that.

ROMANS: I know, Poppy. I've got to tell you, you can't bring them at that age to the grocery store.

HARLOW: I know. I know. This is my wise mother friend over here.

Christine, thank you very, very much.

ROMANS: You're welcome.

HARLOW: Still to come, right here for us on CNN, new reporting by CNN that a growing number in the Republican Party are pushing for more Republicans to jump in to the 2024 primary field for the White House. This as we have new details about the message the former vice president, Mike Pence, will give in a speech tonight on the future of his party.

Plus, Vice President Harris heads to Indiana today as lawmakers there hold a special session on abortion laws. This comes after the Supreme Court overturned Roe versus Wade. The wide-ranging implications for women in that state ahead.

And in Ukraine, details on a so-called plan b to try to get so much grain out of that country following Russia's attack on the Port of Odessa. We're live.

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[09:16:01]

HARLOW: Well, this morning, CNN has new reporting that there are growing fears inside of the GOP about former President Trump's potential legal woes, prompting a growing number within the party to openly cheer for other Republicans to jump into the 2024 presidential primary field.

Let's get straight to our Melanie Zanona. She's on Capitol Hill.

This is your reporting. It's fascinating. I encourage everyone to read it.

What more are you learning and was this a result, a the tide changing, because of that eighth January 6th hearing and all of these hearings over the past few months?

MELANIE ZANONA, CNN CAPITOL HILL REPORTER: Yes, Poppy, I think it was a combination of things. It was the hearings, it was the growing investigation, general Trump fatigue, just the idea that they're worried about Trump running again after he lost in 2020.

And so what we have seen is a number, and growing number, of Republicans starting to cheer for a competitive 2024 primary and encouraging candidates to get into the race. John Thune, a member of GOP leadership, says he thinks there will be other attractive candidates besides Trump, echoing comments from Mitch McConnell, the GOP leader.

Dan Crenshaw, a conservative House member, said he hopes that it's competitive and that there's a lot of people to choose from. And he said he does not think that Trump will be the automatic front-runner just because he jumps into the race.

And then the Republican Study Committee, a large conservative caucus here on Capitol Hill, hosted Mike Pence for a meeting last week where they encouraged him to run in 2024 and thanked him for his actions on January 6th.

Now, if Trump does run and becomes the nominee, most Republicans are going to fall in line. But what we are seeing is that there is a proxy battle that is starting to really heat up for 2024, particularly among Mike Pence and Donald Trump. Both GOP leaders spoke at competing rallies in Arizona last week for their preferred candidates in the governor's race. And this week both of them will be delivering separate speeches at various think tanks.

My colleague, Mike Warren, actually got his hands on a preview of Mike Pence's remarks tonight. And I want to read you just one part of his speech from tonight. One line that really stood out to me is, Mike Pence is going to say, some people may choose to focus on the past, but I believe conservatives must focus on the future.

So, clearly, a veiled shot at Trump there, who has continued to focus on his lies about the 2020 election. And this is really teeing up what could be a collision course between Mike Pence and Donald Trump.

Poppy.

HARLOW: Fascinating, Melanie. Thanks for the great reporting.

Joining me now to talk about these headlines and more, Toluse Olorunnipa, political investigations and enterprise reporter for "The Washington Post," and Margaret Hoover, host of PBS's "Firing Line." She also worked in the George W. Bush White House. You're a veteran, Margaret, of two presidential campaigns. So, I just

wonder what your reaction is to what may happen in your party, Pence/Trump, where this goes, what he says tonight.

MARGARET HOOVER, CNN POLITICAL COMMENTATOR: Look, a reckoning with Trump is long overdue in the GOP, Poppy. And it's no secret that that's my feeling. It's been my feeling for a long time.

I would like to see Pence square off. But you know what I don't want to see? I don't want to see all of these Republican candidates jumping into the fray and actually giving Trump the advantage because in a multicandidate primary where Trump is the incumbent and has still a firm grasp on the GOP base, all he needs is 30 percent and everybody else divides the rest. Trump clears his path to the nomination once again. That's what happened in 2016. You could see it happen all over again.

HARLOW: That's an interesting point. That's an interesting point.

Toluse, very notable that the editorial boards of two newspapers, both owned by former President Trump media ally Rupert Murdoch, condemning the former president for his actions on the 6th of January.

Let me read to you "The New York Post" editorial board headline reads, Trump's silence on January 6th is damning. "The Wall Street Journal" headline reads, t he president who stood still on January 6th.

How significant?

TOLUSE OLORUNNIPA, POLITICAL INVESTIGATIONS AND ENTERPRISE REPORTER "THE WASHINGTON POST": It does show that parts of the party, definitely not the full party, but parts of the Republican Party, parts of the conservative movement are moving away from the former president.

[09:20:07]

They see what happened, you know, on January 6th, as we have seen with the activity of the January 6th committee where they've shown exactly what President Trump was doing. They showed the 187 minutes where he did not act where he could have acted and ended some of the bloodshed. And for some Republicans, that is a bridge too far and they are looking for alternatives. They're looking for someone who can carry some of the Trumpism, some of the conservative policies that Trump backed, some of the populist policies that he backed that he was able to use to galvanize millions of voters without all of the toxicity, without all of the negativity, without all of the unconstitutional activity that he also engaged in. And so there is a segment of the party. It's definitely not the full party, but a segment of the party that's looking to move on.

HARLOW: And Georgia, I mean, you know, the criminal investigation there clearly really heating up and that could change the calculus as well for folks. Margaret, when we had you on, on Friday, we were talking about what

Liz Cheney said at the end of Thursday night's hearing about the strength of women, particularly as witnesses in these hearings.

I want you to listen to what Congresswoman Cheney told my colleague Jake Tapper yesterday about why it is worth giving up her seat if that what happens, losing her seat, if that's what happens in her election, to have done what she has been doing.

Listen.

(BEGIN VIDEO CLIP)

REP. LIZ CHENEY (R-WY): I'm fighting hard. No matter what happens on August 16th, I'm going to wake up on August 17th and continue to fight hard to ensure Donald Trump is never anywhere close to the Oval Office, ever again.

JAKE TAPPER, CNN ANCHOR: If you end up losing your job in Congress because of your work on this committee, it will have been worth it to you?

CHENEY: There's no question. I believe that my work on this committee is the single most important thing I've ever done professionally.

(END VIDEO CLIP)

HARLOW: It may cost her in her state, but what about nationally, Margaret?

HOOVER: Liz Cheney is just the paragon of principle right now. I mean somebody who is -- epitomizes what the founders wanted in a public servant, right? She's serving the public and she's doing her duty to the Constitution despite her personal, political seat. And she is most likely going to lose it. I think she knows that. But she knows that's a price worth paying in order to further democracy, this experiment in democratic republicanism that the founders bestowed upon us. It's up to our generation to keep it up. And that's you and me and all the public right now to learn from these hearings and to take the lessons we needed away in order to continue in this experiment. And bless her for doing it.

What it means for the Republican Party is at least there are some people who are willing to stand in a principled way for the Constitution.

HARLOW: Toluse, let me end on this. The fascinating "Axios" reporting on Friday about, you know, if trump were to win office again and become president again, re-instilling this so-called plan f, which is essentially to replace many, many civil servants, tens of thousands with those who are on the Trump agenda. Let me read you part of that reporting. Trump top allies are preparing to radically reshape the federal government if he's re-elected, purging potentially thousands of civil servants, filling those career posts with loyalists to him and to his America first ideology. This, of course, follows the Supreme Court decision in West Virginia

versus EPA, which stripped away a lot of administrative powers. So you can see how this could change agencies in a significant way.

What do you make of that reporting and the real, real emphasis on it, should President Trump get re-elected? What would that mean for America?

OLORUNNIPA: It would be a direct -- targeted direct attack on the civil service and the idea that people serve across administrations. They don't serve a political party as they're working in government. President Trump has said he wants people to be loyal to him. He even said that to the FBI director. And he wants that loyalty across all segments of the government. And he would potentially, if he were to go forward with this policy, which he actually did sign this policy when he was about to leave office in 2020 -

HARLOW: Right.

OLORUNNIPA: This would be a major shift in the way we engage in government service in this country. And it would be almost as if government officials across the government would have to have a loyalty test to a party, a president. And if they did not pass that loyalty test, they would be fired. And that would be a major shift in the way that our government operates.

HARLOW: Right. That's right. Biden rescinded it. But what would happen if it were put back in place with more time to actually implement over years?

Toluse, thanks very much, and, Margaret. Good to have you both.

So, Vice President Kamala Harris is heading to Indiana today as the state considers strict -- new restrictions on abortions. We'll have a live report coming up.

We're moments away from the opening bell on Wall Street. Futures ticking higher.

[09:25:01]

A crucial week for markets, as we just talked about. Investors waiting for the Federal Reserve's latest policy decision on interest rates. That's midweek. Markets have been up and down as investors are worried about what the Fed's rate hikes are going to mean for the potential of a recession.

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[09:30:00]