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Children, Young Adults Causing Surge in U.K. COVID Cases; Springsteen Broadway Show Requires U.S. Vaccinations; Florida Republican Accused of Threatening Rival with "Hit Squad;" Fed Speeds up Timeline for Rate Hikes as Inflation Rises. Aired 7:30-8a ET

Aired June 18, 2021 - 07:30   ET

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

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[07:31:21]

BRIANNA KEILAR, CNN ANCHOR: There's a new study that finds children and young adults are causing an exponential spike in coronavirus cases in England. While young people are less susceptible to the virus, experts fear that this current growth rate among them could actually mean an increase in infections among vulnerable people. CNN Phil Black live in London with more. Phil.

PHIL BLACK, CNN CORRESPONDENT: Brianna, this is part of the growing evidence that suggests is highly transmissible Delta variant is moving fastest through parts of the population here that have little to no vaccine protection. And that significantly includes children. The U.K. at the moment has not taken a decision on rolling the vaccine out to adolescents. Unlike the U.S., for example, the government here is waiting on the advice of an independent expert panel. But those experts say this is a tricky decision ethically, because you're talking about children who generally don't fall seriously ill from COVID-19. The benefit risk analysis does not fall easily in favor of making the vaccine available to them. So, experts here are advising caution. This is one doctor I spoke to just a short time ago.

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DR. LIZ WHITTAKER, SENIOR CLINICAL LECTURER, PEDIATRIC INFECTIOUS DISEASES, IMPERIAL COLLEGE LONDON: The vaccination has been a real success story for us in the U.K., which we're very grateful for. And there are still people queuing up whenever vaccination down to 18. And I think that we could comfortably vaccinate down to 16 with the data that we have alone consider the 12 to 16 year olds with a bit more information in a few months time.

(END VIDEO CLIP)

BLACK: So that approach is obviously very different to that taken in the U.S. where millions of adolescents have already been vaccinated. But there is another argument here for holding off and that is the hope that vaccinating children and adolescents ultimately won't be necessary. In the U.K. uptake has been very high across the adult population. And it's hoped that alone will be sufficient in hitting a critical threshold of immunity in the population which would then protect everyone including children without the need to roll the vaccine out to children as well. That is the hope. There is tremendous uncertainty in the hope particularly in the context of the more transmissible Delta various, but experts here argue the U.K. still has time to see if that can be achieved. Brianna.

KEILAR: Yeah, that's certainly an approach that will be keeping an eye on. Phil Black for us in London, thank you.

JOHN BERMAN, CNN ANCHOR: So joining us now, CNN's Chief Medical correspondent, Dr. Sanjay Gupta. Sanjay, I have to say, this feels pretty significant to us here in the United States, as we are talking about whether and where and when kids should be vaccinated. If they're finding in the U.K. that is being spread coronavirus a lot by kids and young people.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yeah, I mean that that has been one of the issues. I mean, we talk about these vaccines as being protective to the individual who gets the vaccine and it is a risk benefit analysis. Obviously, younger people are less at risk of this disease. Although, you know, I really studying this virus now for 15 months, I'm really come to the conclusion, you do not want to get infected with this virus. We just are still learning about the long term impacts about this. I was talking to people last night. We don't know what a month later even what the impact of this might be on the brain, on just about any other organ system.

But the second point, John, to your point is that it is a reservoir of disease that is increasingly finding itself in younger and younger people, which is going to make it harder for us to get to the point where we can. We're not going to eradicate this disease, but really quell it, contain it will be more challenging unless that population can be vaccinated.

KEILAR: I'm so glad you bring up that point. I mean, we're seeing studies where in adults, even people who are asymptomatic are finding that later, they're having some health issues that are maybe unexplainable. Perhaps it's because they had coronavirus. It's happening too often and so we really need to know more when it comes to children. At this point, though, Sanjay 65% of adults in the U.S. have gotten at least one dose of the vaccine, but the White House wouldn't give a direct answer when asked if they would reach Biden's goal of 70% by the Fourth of July. What are the numbers showing at this point?

[07:35:24]

GUPTA: Yeah, that the numbers that they don't add up for the country sort of reaching that level of overall vaccination rates. We could show you there's some states that are there. And, you know, getting to that 70% number, but the country as a whole is right now closer to 65% have received at least one dose. If you look at the numbers, specifically, in order to get to the goal, you'd have to have about 700,000 people being vaccinated every day, we're closer to 350,000, 380,000, roughly, that had been vaccinated every day, so, not likely to get there. But I think there's a couple of points, it's still by the end of July, we may be at that 70% vaccination rate across the country. But also when it comes to functional herd immunity, it is the vaccinations obviously. But you also do you have to add in some of the preexisting immunity that exists because of people who've been infected. And I think when you add those two things together, you're already probably add some level of herd immunity in this country, which is why we're seeing the numbers come down, the hospitalizations and the deaths, as precipitously as they have.

BERMAN: So Sanjay, if you want to see Bruce Springsteen, and I don't know that you do, frankly. But if you do want to see Bruce Springsteen on Broadway --

KEILAR: Come on, who doesn't.

BERMAN: I mean, Sanjay, specifically, I don't know if he's a Bruce Springsteen guy. He strikes he is more like Billy Joel.

GUPTA: Glory Days, John, Glory Days.

BERMAN: All right. Listen, if you want to go see him, you're going to need more than a ticket, you're going to need a vaccination, but not just any vaccination, you're going to need a vaccination vetted by the USFDA, what exactly does that mean?

GUPTA: Well, this is interesting. And I'll just preface by saying, you know, we're seeing all these different sorts of reopenings happening now. And people are looking at the same science. And they're coming to slightly different, sometimes dramatically different sort of approaches to this. So June 26, so, you know, eight days from now, they're going to open up, Springsteen on Broadway, and they're talking about improving the ventilation, increasing the overall cleanliness in the theaters, they are going to also require proof of vaccination. So anyone who is 16 and older is going to have to have proof of vaccination. You have to show that. And to your point, that proof of vaccination has to be one of the authorized vaccines in the United States, so that's two weeks after the Pfizer vaccine, Moderna vaccine, or the Johnson & Johnson vaccine.

If you're under the age of 16, by the way, if you have a negative COVID test and you show up with the vaccinated adult, then you could still get in but you have to -- you have to show up at that negative COVID test. So this is how they're approaching it. Specifically, the controversy a little bit is that these vaccines have to be specifically ones that are born in the USA. That's the issue, the Moderna, the Pfizer or the Johnson & Johnson wants.

KEILAR: He pun us, he pun us Berman.

BERMAN: I know. Sanjay got us there.

KEILAR: He sure did. Sanjay --

GUPTA: I'm on fire. I'm on fire.

KEILAR: Stop, stop, stop. I love it, Sanjay, thanks for coming on.

Up next, the Florida Republican accused of threatening his rival with a hit squad?

BERMAN: In the big banks now setting deadlines for workers to get back to the office. I see Christine Romans waiting to tell me about that.

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[07:43:03]

KEILAR: Something that could only happen in Florida politics, according to Politico, a Republican congressional candidate named William Braddock is accused of threatening to assassinate his primary opponent with a "Russian and Ukrainian hit squad." Anna Paulina Luna has since obtained a restraining order against Braddock, writing in a court filing, "I received information yesterday at midnight regarding a plan with a timeline to murder me made by William Braddock in an effort to prevent me from winning the election for Florida's 13th district."

Joining me now is Romy Ellenbogen, she is a reporter for the Tampa Bay Times. Look, Romy neither CNN nor the Tampa Bay Times as you know, his match this reporting by Politico, but I know that you've been doing a lot of reporting on this restraining order that Anna Paulina Luna is seeking. So take us through what exactly is being alleged here by her?

ROMY ELLENBOGEN, REPORTER, TAMPA BAY TIMES: Yeah, so last week on Friday, William Braddock, this candidate was served with two injunctions, one from Anna Paulina Luna, and she says that she heard again of this plot to murder her with a timeline. She also alleges that in screenshots sent to her in text. He mentions working with two other former political candidates, Amanda Mackey and Matt Tito with a plan to put a hit out on her.

KEILAR: OK, so I have to be clear here William Braddock is not yet responded to CNN's request for comment, but here is what he told you, he said, this woman is off her rocker, and she does not need to be representing anyone." Give us a sense, look, this is a wild development in what has already been understated colorful race, right? Tell us a little bit about these candidates who they are and why there's so much animosity here.

ELLENBOGEN: Sure, Anna Paulina Luna ran for the seat in 2020. And she lost to Charlie Crist. She's running again. She's announced her intention for a while. She was the only Republican Candidate. William Braddock jumped in earlier this week. And now it's the two of them in the primary. But there's a lot of candidates in the race on the Democratic side as well. And it's obviously an important key race in maintaining control or changing control of the House in 2022.

[07:45:16]

KEILAR: Yeah, I mean, these are some wild developments, Romy. I know you're going to continue working on this story. Romy Ellenbogen, with the Tampa Bay Times, we appreciate it. Up next, the bosses who are now telling workers get back to the office or else.

BERMAN: And rising prices for everything from gas to toilet paper. Is the White House worried about inflation? We'll ask an economic adviser inside the White House just ahead.

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BERMAN: As more Americans get vaccinated, Wall Street banks are setting deadlines for when workers need to head back to the office. Chief Business Correspondent Christine Romans with more on that, Romans.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Good morning, John. You know bank CEOs for months have been signaling that Wall Street needs to get back to the office.

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BRIAN MOYNIHAN, CEO, BANK OF AMERICA: As more people get vaccinated, we keep bringing more back.

ROMANS: At Bank of America one of the top banks on Wall Street employees are already encouraged to get back to work in person. And if they're not already at their desks this summer the company's CEO says they'll be there by the fall.

MOYNIHAN: The view is after Labor Day, our view is all the vaccinate teammates will back and we'll be able to operate fairly normally and will then start to make provisions for the other teammates as we move through the fall.

ROMANS: Manhattan's financial industry is clearly in a rush to turn the page on this era of virtual work.

MATT MAYO, MANAGING DIRECTOR AND BANK ANALYST, WELLS FARGO: If you work in New York and you work in Wall Street, you're probably going back to work soon.

ROMANS: Goldman Sachs has already asked its employees to return to work this week. At Morgan Stanley where some New York employees are also back at their desks. The bank CEO James Gorman said Monday he'd be very disappointed if people aren't back in their Broadway office by Labor Day.

JAMES GORMAN, MORGAN STANLEY CEO: You can go to a restaurant in New York City. You can come into the office, and we want you in the office.

ROMANS: JPMorgan Chase CEO Jamie Diamond has long been pushing for return to work. Last month, saying exclusively working from home doesn't work for young people and for those who want to hustle.

[07:50:16] MAYO: New York centric Wall Street banks are ripping the band aid off and requiring employees to go back to work one that for competitive reasons, because they want to win. And winning is sometimes seeing customers face to face. Two be the culture, you create culture by having people around each other. There's creative combustion, there's spontaneous interactions, there's mentorship. And third, there's additional safety and having people, you know, face to face in meetings as opposed to relying too much on remote communications, especially in a world with more cyber risk.

ROMANS: The effects on New York's economy and morale could be vast. According to a March report from the state's comptroller, the city's security industry last year employed 179,000 people.

MATT EGAN, CNN BUSINESS LEAD WRITER: More so than almost any other industry, Wall Street is synonymous with New York City. And there's no question that this back to work, push by the leaders on Wall Street delivers a huge vote of confidence in New York, a city that at one point was the epicenter of this pandemic.

ROMANS: But not everyone on Wall Street actually wants to go back to their desks.

EGAN: There's no doubt that there is a bit of a divide here. Managers do want their employees to get back. They're worried about the culture. They're worried about not collaborating. But I'm told that lower level employees are not really in any rush to get back to the office right now.

KATE LISTER, PRESIDENT, GLOBAL WORKPLACE ANALYTICS: Banking of financial institutions have a very command and control culture. And historically, they have been the ones that have been slowest to adopt flexible workplace strategies. It may be about the culture they want to create, but I just don't know if it's going to be possible going forward. I honestly think they've got a rude awakening coming.

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ROMANS: And, you know, that's a risk for financial services, John, for the past decade, there's been this talent war between Wall Street and Silicon Valley. Could bankers unhappy with inflexible schedules find themselves instead at Big Tech? And what about retention of women, something that banks and Wall Street have been working on? As long as I've been reporting on Wall Street retaining women all the way to the top levels of the bank, you've got to make sure that you have those policies in place for working women and working families, John.

BERMAN: Look, there may be very big systemic changes here that industries need to learn how to cope with going forward. Christine Romans thanks so much.

To the bipartisan infrastructure plan is picking up steam in the Senate, but its $1.2 trillion price tag is well below the White House original plan to spend about double that on America's deteriorating railways, bridges and waterways. Joining us now is Jared Bernstein. He's a member of the White House Council of Economic Advisers. Jared, thanks so much for being with us. I know you're an economist, not a negotiator. But I want your view, the Senate bipartisan plan right now, at least as of yesterday, included indexing the gas tax to inflation, which would mean people pay higher gas taxes, and also suggests including new fees for people with electric vehicles. How does the White House feel about those things? How does that fit within the red lines that President Biden promised?

JARED BERNSTEIN, MEMBER, WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS: Well, the right word you use there is red line, the President has an extremely firm red line. Fact two of them, one is inaction is unacceptable. So there will be an infrastructure plan, and it will include many of the President's priorities, including climate. But another red line in the sand is no tax increases for anyone under $400,000. So that will be something he ran on. He's been consistent, and he will firmly stick to.

BERMAN: And those two lines violate that red line?

BERNSTEIN: Any tax increase that hits somebody under 400,000, I mean, it's not rocket science, that's going to violate that line. Yep.

BERMAN: And just to be clear, Mitt Romney made clear and Rob Portman also said OK, if not that, will try to talk to you, will try to figure out other ways then that pay for it. So that is part of the negotiation.

BERNSTEIN: I mean, if I can say one thing, John, if I can pipe the first second there. One element that is in the President's family's plan that I understand Republicans are interested in is tax compliance. I believe this very much ought to be a bipartisan initiative and some of the noise I'm hearing out of the Capitol suggests that it may well be. This is the idea that people have to pay the taxes they owe. I don't think that's particularly revolutionary. But every year hundreds of billions of dollars go unpaid to the IRS because of tax evasion, again, only for folks over 400,000 but enforcing tax compliance should be and I believe will be a bipartisan pay for.

BERMAN: That shouldn't be controversial.

[07:55:00]

I want to talk to you about the employment situation in the United States. Because you know, you've heard from small business people around the country that there is a feeling in certain places that the extended enhanced unemployment benefits are working as a disincentive, they say, for people to go back to work, one of the things they say is, you know, we can't find the workers we need. What do you say to that?

BERNSTEIN: Well, I say a couple of things. More importantly, the president says a couple of things. So first of all, he has a stress that those enhanced benefits, which he very -- was instrumental in legislating, have been a true lifeline for so many people who couldn't find work in the depths of the pandemic, in the beginning of the recovery. But the President has also said that if people are offered a safe and suitable job, they have to come off the rolls and take it, and that the enhanced benefits will expire on schedule as he legislated in early September. As far as people not going back to work, I mean, I've heard the anecdotes and, you know, sometimes the, what do they say the plural of anecdote is data. But we haven't seen that much of this in the data itself. That doesn't mean the anecdotes are wrong. What we have seen is an economy that is creating half a million jobs per month, 540,000 jobs per month, since this president took office. That is an historical record.

So the idea that people aren't coming back to work is belied by job growth and the fact that the unemployment rate has fallen steeply. And it is not just our forecast, but that of the Federal Reserve that it will continue to do so. So we have an economy where the Rescue Plan pulled forward this recovery very effectively. We shots in arms and checks in pockets, and helping families and businesses get to the other side. As the economy goes from shutdown to recovery, you know, that's not a straight line, there going to be bumps in that road. But the direction is very positive.

BERMAN: Let's talk about inflation, shall we, because the Fed just moved up the date that they think they're going to raise interest rates by 2023. It's going to happen sooner they say, than they had anticipated. Obviously, you see some of the numbers coming back in there, prices are rising more quickly than anticipated. You and I have talked a few times about inflation concerns inside the White House, and you have never discounted the possibility that there could be inflation, and then it could have it. I guess the way I want to phrase this to you is, are you more concerned today about inflation than you were a month ago?

BERNSTEIN: Yeah, that's exactly the way I think about this question in terms of concern. Look, I am paid to be concerned about every economic variable, and I earned my paycheck. So this is definitely something we watch very closely.

In terms of a few months ago, I think myself and others on our team outlined what we believe is going on with price pressures. And we're still very much convinced that that's the correct story. The key word is transitory there. And what you're seeing is demand roaring back in the economy, just the way I described in my last set of comments when I talked about an average of 540,000 jobs per month. And I also mentioned that this is not a straight line. It's a bumpy line. Well, one of the bumps in that road is the misalignment between strong demand coming back and supply chains coming back at the same time. When you're talking about lumber, airfares, automobile, semiconductors, there you have supply chains that really took a hit in the shutdown in the pandemic, and they are coming back. They're responding to those price signals. We're starting to see some positive movements in that regard. So the timing between the economy going back to life and the supply chains coming back online, that misalignment right there is leading to price increases that not just we but the Federal Reserve labels as transitory. So that's been our interpretation from the beginning. And it continues to be so. BERMAN: So again, to answer my question directly more concerned than you were a month ago?

BERNSTEIN: The story that we were telling a month ago, our interpretation of what's going on hasn't changed. And in fact, I can be more accurate than that. We wrote a blog on the CEA website where we describe precisely the dynamics I talked about, transitory alignments between the economy coming back online and supply chains coming back off the math and that that timing is never going to be one to one. You know, the way I put it as an economist, markets don't adjust instantaneously. It takes some push and pulls, some give and take. The key thing from the perspective of consumers, the key thing from the perspective of consumers is that these price increases we believe are transitory ones.

BERMAN: Again, I was just asking you basic yes or no question. The Fed seems a little more concerned today than it was a month or two ago about inflation. Are you more concerned than you were a month ago? Yes or no?

BERNSTEIN: I think if you listened, you know, I -- the answer is no. I'm equally concerned. I was very concerned. Yeah, I was concerned then, I'm concerned now. I think what the Fed is telling us and this is almost verbatim is that this is an economy that is heading towards full employment faster than they thought, a growth rate in GDP that they're forecasting for this year of 7%.