Return to Transcripts main page

New Day

Larry Summers' Inflation Warning Comes True, Haunting Biden; Dr. Sanjay Gupta Answers Questions About Vaccine and Kids; Florida Man Attempts Action Movie Escape While Running from Cops. Aired 7:30-8 am ET

Aired November 04, 2021 - 07:30   ET

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


(COMMERCIAL BREAK)

[07:30:21]

BRIANNA KEILAR, CNN ANCHOR: Inflation is now haunting President Biden and the Democrats and really anyone who is dealing with this. Tuesday's election results made that pretty clear, the most important issue for voters in Virginia, according to exit polls, the economy. Senator Joe Manchin saying that this week's bloodbath for Democrats should be a wakeup call.

(BEGIN VIDEO CLIP)

SEN. JOE MANCHIN, (D) WEST VIRGINIA: I've been listening to the people in West Virginia, they're concerned about inflation, they really have been for a long time. And they talked to me, they said, you know, I go to the grocery store, and I can't it takes me $30 more to buy what I did six months ago.

(END VIDEO CLIP)

KEILAR: And joining me now, someone who has been warning about inflation for many months, former Treasury Secretary under President Clinton, Larry Summers with us up. Larry, thank you so much for being with us this morning. I do just want to highlight something that you said in February in an op-ed in the Washington Post, you said there was a chance that macro-economic stimulus on a scale closer to World War Two levels, the normal recession levels will set off inflationary pressures of a kind we have not seen in a generation. Has anyone from the Biden administration that you talked to said, yeah, Larry, you were right?

LAWRENCE SUMMERS, FORMER TREASURY SECRETARY, CLINTON ADMINISTRATION: I'm not going to talk about my conversations with people in the administration. I do think, unfortunately, that some of the predictions that I made about the consequences of stimulus do seem to have come true. I think it's a mistake to think of this as only an issue about stimulus. It's also an issue around what's happened with the Federal Reserve. It's also an issue around the fact that COVID mutated into the Delta variant, also related to broad geopolitical developments and climate that have impacted on the energy markets. But from here, what we've got to do is, look forward, I think we do need to recognize as people are starting to that inflation is a serious problem. I think if we can resolve the stimulus Recovery Act, Build Back Better Debate quickly and pass legislation that's oriented to increasing supply that's paid for, in what it does, I think those are going to be the best ways forward, I think the Fed is still not fully recognizing the gravity of the situation.

KEILAR: OK, so some tough words for the Fed there. For regular Americans who are dealing with this, they want to know, how long is this going to last? And is this going to get worse? What are you saying?

SUMMERS: I think it's almost certain to last for another six to nine months, and it could well last longer. I think the positive side from the point of view of people is that they're going to find it easier to get jobs than they did before. They're likely to be able to get larger wage increases than they did before. You know, there's a silver lining and everything. And the silver lining here is going to be that we've got an economy after a long time, when the big thing was workers looking for jobs. We've now got a big thing, which is jobs looking for workers. And that should mean more of us have more power vis-a-vis are employers, and that'll translate into higher wage increases.

But I do think we've got a real issue of an overheating economy and the Feds going to need to step in and help to control this. They started that process yesterday. I do think we need to be careful with our policies generally now to be focused on providing more supply rather than focused on providing more demand.

KEILAR: So, my colleague Evan McMorris-Santoro just told an excellent story about a family, the Scotlers, they have a number of children, and they consume a lot of milk and eggs, you know, these are everyday items, that there's no choice. This is what they're consuming, and they're talking about, you know, when a gallon of milk goes from 199 to 279, they're in deep trouble. So, if you're saying that this is going to last six to nine months maybe longer, what does the White House need to do for families like the Scotlers?

[07:35:09]

SUMMERS: Well, I think that the child tax credit that's a contained in their legislation is the right is the right thing to get to get past, they do need to make sure they get it paid for, in reasonable ways. I think it's very unfortunate that the tax bill is it's now designed, well actually cut taxes for the majority of Americans with incomes between five and $15 million. And I don't think that makes any sense for us at all. Those are the people whose taxes we should be raising, to pay for doing necessary things, like helping the Scotlers. And, you know, I hope that the senators who are blocking the increase in the corporate tax not back to any kind of high level, but back to the 25%. That was what the business lobbyists wanted in the first place. I hope they will relent on that. And let that pass because that'll help to contain inflation, that'll help the economy, function better.

KEILAR: Larry, really appreciate you being with us. You know, people are really feeling this right now. And it's so important to talk about what the road ahead looks like. Maybe some hurt before we get some help here. Larry, thank you so much.

SUMMERS: Thank you.

KEILAR: This morning, former President Trump's legal team will argue in a key court hearing that more than 700 pages of records from his presidency demanded by House January 6 committee should not be released. He's claiming that the documents are covered by executive privilege. CNN's Evan Perez is joining me now. There are many who say, some say, many say that these documents are not covered by executive privilege.

EVAN PEREZ, CNN SENIOR JUSTICE CORRESPONDENT: Well, yeah, because -- well, first of all, the first thing is usually we have one President at a time and what President Trump like a lot of things associated with Trump, the former president is doing here is just not normal. Usually, what we have is the president decides the current president decides what is covered by executive privilege, and Trump is saying that what Biden has done, which is to waive privilege on about 700 documents that the that the National Archives is going to turn over is prepared to turn over next week to Congress is just -- the Trump says that's the wrong decision. And I'll cite you just a part of what their argument is. They're saying permitting this expensive request here would harm future presidents and their close aides by allowing invasive congressional fishing expeditions.

And what he's looking for to hide or to keep secret, Brianna, are documents like call logs. There are documents from lawyers inside the White House who took notes and prepared memos. In those key days as Trump was trying to overturn the election, there are binders from Kelly McInerney, the former press secretary, who was -- who had talking points and some of the speeches that Trump didn't give during the assault on the Capitol.

So, there are a lot of things here that goes straight to the point of what the congressional committee which is investigating -- the Select Committee, which is investigating the January 6 attack on the Capitol that they believe will show exactly what was happening from his closest aides during those key hours, during those key days as democracy really hang hung in the balance.

KEILAR: Yeah. Look, his argument, his lawyer's argument that this is an extraordinary release of documents seems to miss the point that there were extraordinary actions.

PEREZ: This is not normal. What happened that day.

KEILAR: That's right, taken on the part of President Trump. Evan, thank you so much for the report.

JOHN BERMAN, CNN ANCHOR: All right, joining me now CNN's Senior Legal Analyst, and former state and federal prosecutor, Elie Honig. Elie, call logs, handwritten notes. How important is this evidence?

ELIE HONIG, CNN SENIOR LEGAL ANALYST: These documents are absolutely crucial. The January 6 committee has to have these documents to get the full picture. As a prosecutor, this stuff is a goldmine because it takes you right to the heart of the most important question, who knew what and who was doing what within the West Wing, the Oval Office as January 6 went down. They're important because they will answer that question, but they also will be a roadmap for the committee moving forward. They'll show you who else do you need to talk to? Where do you need to follow up?

BERMAN: How strong are the former presidents claims of executive privilege here?

[07:39:56]

HONIG: They're weak. We don't have a definitive answer. However, we do have important guidance and common sense. The Supreme Court has told us in the past that, yes, the former president actually can have some ability to try to exert executive privilege. However, the Supreme Court in that same decision, 1977 said, generally speaking, it should be up to the incumbent president, the current president. And that makes sense because the point of the privilege is to protect the institution of the presidency, not any one individual. So, it's not entirely cut and dry. But the weight of the law really favors Joe Biden's position here.

BERMAN: Let's be clear, this goes before a judge today.

HONIG: Yeah.

BERMAN: A federal judge hears this today. What do we know about her? And what does that tell us about which makes you money lien?

HONIG: So, a couple interesting things, important to know about this Judge Tanya Chutkan, down in Washington, D.C., number one, she has handled several of the January six criminal cases against people who stormed the Capitol. She's been very tough on those defendants. And she has said things on the record like this was an attack on our democracy. She said at one point, they did this for one man, we know who that one man is.

The other thing I want to point out about this judge is, she is setting an example here that all of our judges in cases like this need to follow. She has moved this case remarkably quickly, appropriately so. This lawsuit got filed two weeks ago. And in two weeks, we've had full briefing both sides did very good long briefs. We're having argument today. judge could rule today. And if not today, I think very quickly. And so, when you hear people say the courts are so slow, and they take so long, they don't have to be. It's up to our judges, you can give a lawyer a crazy close deadline, they will make it work. I've been in that position, believe me. This judge is setting the tone, I think.

BERMAN: So, shall rule quickly you think what?

HONIG: Yeah, so then we're on to round two, whoever loses here is going to go right up to the Court of Appeals, no question about it. Again, there will be time pressure on them. For sure whoever loses the Court of Appeals will then try to get this case to the U.S. Supreme Court. And that's going to be really interesting, because on the one hand, the Supreme Court doesn't take many cases, they tend to be allergic to potentially political cases. On the other hand, this is a one in a million case, we have a battle between the legislative and executive branch, and we have a battle between the current and former president. So, if there's ever been a case, big enough with enough dimension to it, the Supreme Court should take it, this is it.

BERMAN: And they haven't ever issued clear cut rulings on that separation and on that specific matter.

Elie, The Washington Post's report, something that I think might be really important, and it has to do with the hotel room, I believe in the Willard Hotel, which is a historic, beautiful hotel right near the White House, which was used by allegedly Steve Bannon and Rudy Giuliani and others, John Eastman to plot some of their maneuverings, legal and otherwise, before January six, it was paid for the post says, by the campaign, by political operations, not by the White House, why does that matter in terms of trying to claim privilege over what might have been discussed there?

HONIG: Right. So, first of all, it's important just because it shows us who was behind all this plotting the campaign, that's hugely important to know, with respect to the legal issue on privilege. If these communications were campaign related, they are not covered by executive privilege. Executive privilege covers the president speaking to his advisors about policy decisions, it does not cover political activity, it does not cover campaign activity. So, assuming that reporting is correct, they're going to have no executive privilege claim over all of that war room plotting in the Willard.

BERMAN: Non-government employees in a room paid for by a political campaign discussing things that aren't about the workings of government?

HONIG: Yeah, they're dead in the water on that.

BERMAN: Elie Honig, thank you very much for that.

HONIG: Thanks.

BERMAN: Dramatic moments during a police chase when the suspect decides to jump off a bridge.

KEILAR: Plus, younger kids now getting COVID shots. Dr. Sanjay Gupta answering some common questions from parents next.

(COMMERCIAL BREAK)

[07:48:01]

BERMAN: So as the U.S. surpasses 750,000 COVID deaths, a glimmer of hope in the fight against the virus, children ages five to 11 they are now able to get the Pfizer vaccine. You're seeing some of the kids there do it. It was really fun to see some of them yesterday what great sports they were. CNN's Chief Medical Correspondent and a great sport itself, Dr. Sanjay Gupta here to answer some questions that parents have been asking. And they've been asking these for a while Sanjay. And so, I think it's important in some cases, even just to ask them again. And one of the first questions they have is, is it OK for my kid young, five to 11 to get the flu shot at the same time they're getting the COVID shot?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yeah, the answer is yes. In fact, you know, if you talk to pediatricians now, they will say they actually encourage it as, you know, you've had kids, they often encourage getting multiple vaccines on the same day, just because it's easier that way, you don't have to keep bringing the child back. So, in fact, coadministration is encouraged different sites. So, it can be the same muscle, but different sites within that muscle, for example. So that's the big thing. People who are administering the shots, they know that they'll have a sore arm for a couple of days but get both shots. It may be at worst flu season this year. We didn't have much of a flu season last year, sometimes it's a little bit of a compensatory response, they call it, so get both if you can.

BERMAN: A lot of questions have come in about if their kid is on the cusp, the cusp of 11 and 12 years old, what do I do if they're 11? Do I get the partial shot? Or do I wait until they're 12 to get the full shot?

GUPTA: Yeah, I know, this is interesting. And I'll preface by saying this isn't magic. There's no absolute sort of cut off here when you turn 12. Though, part of the reason that's chosen is because that's around the time people are going into puberty. So, they want to like look a different sort of response to that point.

The CDC actually weighs in on this specifically. And what they say is let's say your child turns 12 in between the first two shots, go ahead and get the age-appropriate dose for the 12-year-old. So, if they got 10 micrograms, which is what they're recommending for five to 11-year- olds, go ahead and get the 30 micrograms when they turn 12.

[07:50:03]

By the way, we looked into this a bit more FDA says if they get the smaller dose both times, they're still considered fully vaccinated. So don't -- there's a lot of things to worry about. Don't worry about that particular aspect so much.

BERMAN: I want to read this. This is a question from Arnie, I am vaccinated and attend to get my booster in time for the holidays. If my six-year-old granddaughter gets vaccinated in time, is it safe for us to schedule a visit and be around each other without masks?

GUPTA: Yes, this is why you do it. I mean, you know, I'm looking forward to these types of things as well. And, you know, I have young nieces, my parents, you know, getting them together for the first time in a while, you get the -- everyone's vaccinated. That's exactly the scenario that can sort of play out. We know, I mean, the data has been really compelling. We knew how good the vaccines were from the initial data, reduces likelihood of infection 11 and a half times reduces likelihood of getting severely ill, 20 times, they're not perfect. They're really, really good. So that's a sort of scenario where you can say yes, and get together masks off, give grandparents or whoever a hug.

BERMAN: I'm going to skip ahead to a question that's not about kids. And this comes from Lisa. This is question number five, I received the J&J vaccine in early April, I will soon seek an mRNA vaccine. If I choose Moderna, do I get a Moderna booster which is half the size of the original dose or a second full dose of Moderna vaccine?

GUPTA: Get the half dose. So, this was a little bit of back and forth so I can understand the confusion. For many of these boosters, they were using essentially the same dose that they use for the first two shots for example, Pfizer, Moderna trialed that as well, which is 100 micrograms. What they then found was that the booster dose that made the most sense was 50 micrograms, and that holds up whether you've had Moderna in the past, or you've had a different vaccine as the J&J vaccine is this person is asking.

BERMAN: If I had the J&J vaccine, go get the booster.

GUPTA: Get the booster, yes.

BERMAN: I think that's one thing, you know, for sure. And you're eligible at two months after the J&J vaccine.

GUPTA: That's right, exactly six months for the other ones.

BERMAN: Sanjay Gupta great to see.

GUPTA: Great to see you, yeah, thanks.

BERMAN: Right, new urgency for negotiations on the Biden agenda after Tuesday's election results. We're going to speak to one of the key figures, may be the key figure in all of this Senator Joe Manchin ahead.

KEILAR: Plus, a car chase suspect cornered on a bridge and with only one way out.

UNIDENTIFIED MALE: He's running right now. Looks like he might -- he's like trying to hop off the bridge right now.

(COMMERCIAL BREAK)

[07:56:30]

KEILAR: Some pretty dramatic moments as a man tried to pull move right out of an action movie to get away from police in Florida.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Lee County (inaudible).

UNIDENTIFIED FEMALE: (Inaudible). UNIDENTIFIED MALE: It's on the bridge. It's crashing on the bridge right now.

UNIDENTIFIED FEMALE: (Inaudible).

UNIDENTIFIED MALE: Lee County just crashed on the bridge. It's on the top of the bridge right now. He's running right now. Looks like he might -- he's like trying to hop off the bridge right now. He's staying in on the foot of the bridge. And he just jumped off the bridge.

UNIDENTIFIED MALE: Lee County, he jumped in the water.

UNIDENTIFIED FEMALE: (Inaudible).

UNIDENTIFIED MALE: Yeah, it's right underneath.

UNIDENTIFIED MALE: OK.

UNIDENTIFIED MALE: (Inaudible).

UNIDENTIFIED FEMALE: I still have visual.

UNIDENTIFIED MALE: OK, good job. I still got visual on him, is in the water. Just sitting there now.

(END VIDEO CLIP)

KEILAR: Police in Fort Myers finish fish the man out of the river. They arrested him. And then as you can see here, this is the boat doing so. They took him to the hospital. Sheriff's deputies say that the van had been reported stolen.

BERMAN: Guys lucky to be alive.

KEILAR: Yeah.

BERMAN: Lucky, you can seriously hurt.

KEILAR: Not a good solution to the situation he was dealing with for sure. All right, New Day continues right now.

(COMMERCIAL BREAK)

BERMAN: Good morning to our viewers here in the United States and around the world. It is Thursday, November 4, I'm John Berman with Brianna Keilar and Democrats are breathing a big sigh of relief this morning. CNN projects that Governor Phil Murphy has won reelection in New Jersey. A win is a win. They're thrilled about this. And it's history making its own way. He's the first democratic governor there to win a second term in 40 years. But Murphy's margin was slim even though President Biden carried New Jersey by double digits just one year ago.

(BEGIN VIDEO CLIP) GOV. PHIL MURPHY, (D) NEW JERSEY: Tonight, I renew my promise to you whether you voted for me or not to work every single day of the next four years to keep moving us forward. And so importantly, forward with a deeper sense of fairness and a commitment to equity, forward by rejecting the divisiveness and chaos that permeate too much of our politics.

(END VIDEO CLIP)

KEILAR: Now the win staved off another major democratic defeat after the one that happened in Virginia's gubernatorial race. The results in both states though, are really wake up calls for Democrats as they are struggling to come together to pass President Biden's domestic agenda and to retain control of Congress. All right, Berman, walk us through what happened here and why this is ringing alarm bells?

BERMAN: Right. First, let me tell you where we are. Right now, Phil Murphy is leading by 35,000 votes with 88% counted at this point. It's likely that that number will grow? Why, let's look at the counties that are reporting 89% or less of the votes so far. You can see they're all democratic county counties which means that most of the votes still to come in is from these areas including places like Hudson County New Jersey where Phil Murphy has 73% of the vote just 81% --