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The Situation Room

Interview With Illinois Senator Dick Durbin; Samuel Alito's Paper Trail

Aired October 31, 2005 - 15:00   ET

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

WOLF BLITZER, CNN ANCHOR: We are going to right back to the West Wing of the White House.
Let's listen in on this briefing -- the White House press secretary peppered with questions on various sensitive issues.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: ... since 2001. And the vice president selected them because he -- he values their judgment and their insight and looked to their experiences, people that could fill these two positions.

QUESTION: But what does that say to the people who -- in both parties that have said that this indictment and other issues that have arisen show the need for a change and maybe some fresh faces here in the White House? And here is somebody who...

MCCLELLAN: The vice president is wanting to tap these two individuals to serve in his positions.

I don't know if you're asking a broader question about staff changes. I mean the president -- it's always the president's prerogative to have a team in place that will help him meet his needs and his goals and carry out his agenda. Now with that said, I mean, there's no discussion of staff changes beyond the usual vacancies that occur or beyond filling the vacancy that the vice president did as well.

But it's always the president's prerogative to choose the team that best meets his needs for advancing his agenda.

QUESTION: Are you saying that Mr. Addington was not in the indictment?

MCCLELLAN: I'm sorry?

QUESTION: Was Mr. Addington not one of the players mentioned in the indictment?

MCCLELLAN: You'd have to ask the special counsel those questions.

QUESTION: Scott, when you talk about your relationship with the press, we've never been formally introduced.

(LAUGHTER)

QUESTION: I'd like to ask Terry's question and get a different answer. But anyway...

(LAUGHTER)

QUESTION: ... can you tell me the day and time that the president picked Alito? Did he pick him on Thursday or Friday?

MCCLELLAN: Well, after Harriet Miers withdrew her name from consideration on Thursday, the president very much had in mind Judge Alito as someone that would be a very capable and distinguished person who could fill this vacancy.

And so the president was very much focused on him. He spoke with Judge Alito Friday after returning from Norfolk. The president called him and had a conversation with him. And then the two met this morning at about 7: 00 o'clock in the Oval Office for about 20 minutes before Judge Alito's family joined them.

The president formally offered the nomination to him in the Oval Office, but he very much had him in mind over the last few days.

QUESTION: Thank you. Scott, Secretary of State Rice says the United States takes very seriously the Iran's threat against Israel. Does this problem and the one with Syria mean more trouble for the U. S. ?

MCCLELLAN: Well, we're concerned about the actions of both those regimes. Those regimes are out of step with the rest of the Middle East. Their behavior is something that is of concern not only to the United States, but many in the international community.

And we would like to see both regimes change their behavior. Both have shown support for terrorism. Both have been destabilizing forces in the region.

We encourage both to be good neighbors to other countries in the region, particularly Iraq as the people of Iraq are working to build a lasting democracy.

In terms of the United Nations Security Council, the United Nations Security Council passed a resolution on Friday strongly condemning the remarks by the president of Iran last week.

Many leaders in the international community have spoken out about the comments that were made. And, today, the Security Council unanimously passed a resolution to hold Syria to account and to demand that Syria once, and for all, fully cooperate with the investigation into the assassination of Prime Minister Hariri of Lebanon.

QUESTION: Turning to the president's speech tomorrow on avian flu, is he going to unveil a national preparedness plan for that speech or is he going to get into some real detail for a program on it?

MCCLELLAN: I think you will see some detail to the remarks and we'll probably have additional information for you after the remarks as well. The president will be discussing his national strategy for a pandemic flu.

This strategy is based on three fundamental principles: first, finding a flu outbreak as soon as it appears, then containing and treating it to the best extent possible; second, on developing strong protections like vaccines and antivirals -- Tamiflu, for instance, is one that can be used to treat it; and responding quickly to save lives.

It builds upon what we've already done as a country that is leading the way when it comes to addressing the threat from a pandemic flu outbreak.

We have already been acting to create a vaccine and stockpile protective medicines such as antivirals. We are accelerating efforts to develop the next generation of vaccine technology. That means using cell-based techniques versus the egg-based, because we believe that if we can move to the cell-based technique, we have the manufacturing capacity to be able to develop or mass produce that vaccine quickly and that's going to be important.

We don't know -- well, we do know from history that there have been outbreaks from the bird flu. We don't know what strain of virus it might eventually lead to in a possible outbreak, but it's something we need to take seriously.

And that's why the president has been leading the way.

We have expanded our stockpile of antivirals to over 4 million courses by the end of 2005.

We're enhancing domestic preparedness. Remember, we provided over $5 billion to states and localities for public health and medical preparedness since 2001.

We have requested some $70 million in the '06 budget for mobile hospital surge capacity, emergency medical personnel. And we have added influenza viruses with pandemic potential to the list of quarantinable diseases. That was done back on April 1st of this year.

We have also been working to advance the international efforts to contain the outbreak.

We announced the International Partnership on Avian and Pandemic Influenza at the United Nations back on September 14. More than 80 nations have joined that effort.

We have ongoing engagement with the international community on these issues.

In fact, just today when the president met with Prime Minister Berlusconi over lunch, they discussed the importance of working together, the European Union and the United States, to address this threat and the importance, if there is a human-to-human transmission, that we are able to quickly move and try to contain that possible outbreak.

On the morning that Harriet Miers was named to the vacancy on the Supreme Court, you said that 15 people, including the four finalists in the process that led to John Roberts, were considered, six of them were women. At a subsequent briefing you said that a number of them, when you confirmed what James Dobson said, had asked that their names be taken out of conversation.

MCCLELLAN: No, I think a couple.

QUESTION: A couple, including several women?

MCCLELLAN: I don't think I necessarily defined it by the overall number that you're referring to, but I'll double check that.

(CROSSTALK)

MCCLELLAN: Well, I'll double check that.

QUESTION: OK. And you said a number of them were women, correct?

MCCLELLAN: No, I just said a couple had asked that they not be considered.

QUESTION: Can you tell me how many of those who asked that their names not to be considered for this were women?

MCCLELLAN: No, I'm not going to get into the nomination process, just out of respect for individuals that may have been under consideration.

QUESTION: Scott, on the Supreme Court nomination, there's been some commentary from Democrats in the Senate that the White House succumbed to pressure from the extreme right wing. The ranking Democrat on the Senate Judiciary Committee, Senator Leahy of Vermont, has called this nomination needlessly provocative.

Based on those comment, do you expect to have a fight...

(CROSSTALK)

MCCLELLAN: Well, I think I answered that question earlier. We certainly hope not. Judge Alito is someone who has been confirmed by unanimous consent previously. He is someone that the entire United States Senate approved when he was nominated to the 3rd Circuit Court of Appeals. There's no reason why the Senate should not move forward in a civil and dignified way to give a fair up-or-down vote.

He is someone who is widely respected by Democrats and Republicans alike who know him. His colleagues know that he is someone who has a brilliant mind and someone who is of the highest integrity and someone who is very thoughtful and deliberate in how he approaches cases.

This is an individual who looks at the facts and the merits of a case, and then he looks at the law, and he carefully weighs the pros and cons of the position he is going to take, and then he makes a decision based on the law.

He has a record of looking to Supreme Court precedent when he comes to those decisions as well. And I think, if you look at his record and the rulings he has issued as a member of the 3rd Circuit Court of Appeals, you will see that type of jurist.

QUESTION: But, as you know, the Senate treats Supreme Court nominees differently from circuit court nominees. Would the White House or the president...

MCCLELLAN: Well, it's a question of: Are they going to change the standard this time around compared to the precedence that's been set in previous conformation hearings? Because if you look at the precedents that have been set, there's no reason why they shouldn't move forward in a civil and dignified way.

They did that with Justices Ginsburg and Breyer. They were people who many in the Senate may have disagreed with from a philosophical standpoint, but they recognized they were qualified to serve on our nation's highest court. And they moved forward quickly on those nominations.

QUESTION: Many Republicans have expressed concern that your policy -- trying to get away from the Libby indictment by continuing business as usual is causing a lot of problems for them because of the cloud of suspicion which is still hanging over the White House, especially over the Office of the Vice President which seemed to be a central focus of the whole Valerie Plame issue -- is going to cause them problems as we go into 2006, not into 2008.

And don't you have a responsibility also with regard to the party that this has to be gotten out of the way, that some measures have to be taken, either in terms of a change in personnel or some kind of statements made to indicate that you're working along a...

MCCLELLAN: I think your question presumes a lot of things at this point. Again, there are facts that are not known at this point as this legal proceeding continues and as this investigation continues. Let's let that occur.

We have a responsibility to the American people to get things done that will help improve their lives and make the world safer and make American more prosperous. That's what we have a responsibility to do. We have a responsibility to focus on their work.

And that's what we will continue to do. That's what we can do things about. We will also continue to cooperate with the special counsel as he moves forward on the legal proceeding. That is something we have done from the beginning and that is something we will continue to do.

QUESTION: Senator Gregg, last Friday, said he plans to introduce a windfall profit tax proposal and link the revenue to helping to fund the LIHEAP, low-income housing assistance program. I know the president is opposed to raising taxes. But if the revenue could be used to help poor people pay their home heating bills, would the administration consider supporting that?

MCCLELLAN: I think you just answered your question. I haven't heard any discussion of any possible tax increase. This president is committed to cutting taxes to keep our economy growing. And that's exactly what we have done. In terms of LIHEAP, we are very committed to working with Congress to increase the amount of money available for low-income housing heating assistance.

QUESTION: And also, last week, the Department of Labor somewhat quietly announced that it plans to reinstate Davis-Bacon. And we were told from the White House then that the reason that that was done is because it had served its purpose.

My understanding is that Andy Card met with several congressmen who complained that some of these out-of-state workers were going there, not being paid the prevailing wage and that people that lived in the area were complaining that people from out of state were willing to work for way below prevailing wages.

So was it the administration's concern that some contractors were awarding -- being awarded jobs, awarded contracts and not paying fair wages?

MCCLELLAN: Whoever told you that it had served its purpose was right on. It was a temporary waiver. That's what it was always meant to be, much like after Hurricane Andrew when it was waived for a temporary period of time.

QUESTION: Yes, but the purpose -- was it to award contracts quickly, to get the clean-up effort done and also not be held accountable to paying the low prevailing wage...

MCCLELLAN: I wouldn't look at it that way. I would look at it as opening up opportunities to more people and people in the region and to be able to move forward quickly on those contracts.

QUESTION: Why did the president give up on diversity on the court? He used to say that was important. Is he satisfied with the diversity...

MCCLELLAN: Look at the people he has appointed to the bench over the course of his time. You can go back to his days as governor of Texas. He has always looked to people from all walks of life to serve on the bench. And he has a strong record, not only on the bench, but within his administration, of appointing people from all walks of life.

QUESTION: So he would be satisfied that this new court, if Judge Alito is confirmed, is adequately diverse?

MCCLELLAN: Well, the decision should be based on who you believe is the best person to serve in that position. Certainly, the president has always taken into account a diversity of potential nominees.

He feels that's important. We are a country that is diverse, and diversity is one of our strengths in America.

QUESTION: On October 7, 2003, the president said about the CIA leak investigation, quote, "I want to know the truth. That's why I have instructed the staff of mine to cooperate fully with the investigators."

Last Friday, the special prosecutor said that he has been unable to find out the truth because of Lewis Libby's obstruction of the investigation.

Does the president wish that Mr. Libby tell the truth?

MCCLELLAN: Well, again, that is making a presumption. Under our legal system...

QUESTION: But does the president wish that Libby tell the truth?

MCCLELLAN: The president directed everybody in the White House to cooperate fully with the special counsel. That's what he expects. The White House has been cooperating fully with the special counsel, and we will continue to do so.

In terms of the individual you bring up, there is a presumption of innocence -- and we're going to work under that presumption. We want there to be a fair and impartial hearing. I'm sure others do as well.

Maybe some don't, but that's the way that our legal system is set up. And so we need to let that legal process continue.

Wendell (ph).

BLITZER: The president's press secretary, Scott McClellan, peppered with some tough questions on the CIA leak story, Scott McClellan sticking to the line that the investigation continues and the White House is not going to respond.

He was hammered by some serious questions about whether the president, the vice president, the White House should apologize because of the entire leak investigation -- Scott McClellan refusing to walk down that line, also speaking extensively about the president's decision to nominate someone to replace Sandra Day O'Connor on the U.S. Supreme Court.

The vice president, Dick Cheney, today appointed, by the way, his counsel, David Addington, to -- as chief of staff, to replace Lewis Scooter Libby, who was indicted last Friday in that CIA leak investigation.

John Hannah will take over Libby's duties as assistant to the vice president for national security affairs.

Libby, by the way, is due to make his first court appearance Thursday, when he's arraigned at the U.S. District Court here in Washington. Libby resigned Friday, after he was indicted on five counts, including perjury, making false statements and obstruction of justice.

The charges all stem from the investigation into the outing of the CIA officer Valerie Plame. Her husband, the former U.S. Ambassador Joe Wilson, is calling for the dismissal of top Bush strategist Karl Rove, who remains under investigation in the case.

Joe Wilson, by the way, will be joining us here in THE SITUATION ROOM in the next hour.

Our SITUATION ROOM continues.

Jack Cafferty was off last week. Fortunately, he's back this week.

You picked a good week, Jack, to come back to town. We missed you last week.

JACK CAFFERTY, CNN ANCHOR: Well, I -- now, I got a -- I got a chance to watch a little on Friday. How long were you on the air, eight hours?

BLITZER: We were on a lot last week.

CAFFERTY: You were on eight hours on Friday?

BLITZER: That's correct.

CAFFERTY: Yes.

I -- I got sick of looking at you, Wolf.

(LAUGHTER)

CAFFERTY: I mean, I -- you know, you're a nice guy, but I -- enough already.

There's a rumor going around that they're going to -- in order to save money at CNN, they're going to fire all of the anchor people and you're going to do all the shows, 24/7.

They will hook you up to an I.V., so you don't have to leave to eat.

(LAUGHTER)

CAFFERTY: They will bring a cot into the studio. You will get a couple hours sleep...

BLITZER: All right. All right. All right. Enough.

CAFFERTY: ... late at night.

(LAUGHTER) CAFFERTY: They will play some "LARRY KING" reruns. You can lie down, get a nap.

(LAUGHTER)

CAFFERTY: Then it will right back on the air. You can do all the shows.

BLITZER: As long as you're here with me.

CAFFERTY: Not a chance.

BLITZER: OK.

CAFFERTY: Karl Rove may not be out of the woods when it comes to this CIA leak case.

After Friday's indictment of Scooter Libby, the special prosecutor, who is just terrific, by the way, this Patrick Fitzgerald, a countryman from the old sod, continuing his investigation. It's possible there could be more charges. Yesterday, Senate Minority Leader Harry Reid said the president ought to fire Karl Rove.

There's also been some speculation that Libby might seek a deal, a plea bargain. In return for a more lenient sentence, he would then give Fitzgerald more information on what went on the White House. I really hope that doesn't happen. I hope there's no plea bargain.

I want to see the trial. The question is this: Is the Scooter Libby indictment the end of the CIA leak case? You can mail us your thoughts on that at caffertyfile -- caffertyfile.com, or go to CNN.com/caffertyfile.

They said this Scooter Libby got this nickname when he was a baby because of the way he was got around in his crib. Wait until you see him getting around in his prison cell, trying to stay away from Bubba, when he goes up to Leavenworth or some place...

(LAUGHTER)

CAFFERTY: ... for what he has been doing.

BLITZER: Jack, we will get back to that in a moment.

CAFFERTY: All right.

BLITZER: We have got Senator Dick Durbin standing by.

Senator Dick Durbin, the Democratic whip in the U.S. Senate, is joining us right now to discuss both of these important issues.

Senator Durbin, thanks very much for joining us.

First of all, the nomination of Samuel Alito to replace Sandra Day O'Connor in the U.S. Supreme Court, is this someone you think you can support? SEN. DICK DURBIN (D), ILLINOIS: I'm not sure.

But put it in context. It was just last week that the most extreme element of the Republican Party forced Harriet Miers out. She had to withdraw her nomination, because they didn't trust her to pursue their political agenda. Now we hear the name Sam Alito. They're delirious in joy. This is what they have been waiting for.

Well, that raises some questions in my mind: Who is he? What does he believe? Is it in the mainstream? Or does it represent that same narrow political agenda?

BLITZER: Well, what would -- is it your intention to consider at this point, together with other Democrats, a filibuster?

DURBIN: Way too soon.

I need to ask questions of Judge Alito. He needs to go through the hearing. We need to look at his background material, read his decisions carefully. There are some things that concern me, some decisions he's handed down on women's rights and civil rights and the role of Congress in addressing the problems across this nation.

But I don't know of anyone on the Democratic side who is signaling a filibuster at this point. It's way too early to make that decision.

BLITZER: There are -- as you remember, there was the so-called gang of 14, seven Democrats, seven Republican senators, who said -- who came up with a proposition, there could only be a filibuster under what they called extraordinary circumstances.

Already, we're hearing from several of the Republicans, DeWine of Ohio, McCain of Arizona, Lindsey Graham of South Carolina, this does not wise to that level. So, if you go forward with the filibuster, you might have some problems.

DURBIN: Well, I would ask each of those three, what do they know about this man? I mean, he has, what, 15 years on the federal bench, handed down a lot of discusses. He has many questionnaires to fill out and questions to answer.

Unless they have jumped to the collusion they are going to vote for him regardless, I don't think that really respects the process. The process suggests he will come in, follow the ordinary procedure. We will ask questions, and then decide whether he's worthy of this lifetime appointment.

BLITZER: Let's talk a little bit about the CIA leak investigation.

Did you -- did you have confidence in the special counsel, Patrick Fitzgerald, what he came up with?

DURBIN: Totally. In fact, Patrick Fitzgerald, I interviewed him when he was appointed Northern District U.S. attorney in Illinois. Senator Peter Fitzgerald, not related, as they always said, picked him and asked me to meet with him. And I -- I walked away very, very impressed.

I thought, this is a professional prosecutor. If he have would said, no indictments, I would respect him for it. If he says, this is the end of the indictments, I would respect that decision, too.

But the thing that troubles me about this, Wolf, when it gets down to it, why would Lewis Libby, the chief of staff to the vice president of the United States, if he did what he was charged with, why did he do it? Why didn't he just answer these questions honestly? The indictment says that the vice president gave him this information almost a month before these -- these conversations that got him in trouble. Why didn't he just answer that question openly?

BLITZER: You were quoted, as you said on "The Crier Report" way back February 3, '99, referring to a different case, "Having practiced law before I came to this job in Congress, you said, "I can recall witnesses who have had faulty memories, even when they were trying their best."

Do you remember saying that?

DURBIN: I'm sure I did, because, as a practicing attorney, I ran into that all the time.

But consider this case. In at least three different instances, the chief of staff to the vice president of the United States, apparently, according to the indictment, tried to mislead the grand jury as to what he learned. Now, missing a date or missing a few words is one thing, but have three separate instances in something of this gravity and this seriousness? I think that's why he was indicted.

BLITZER: You want Karl Rove to step down?

DURBIN: I think it would be a clean break for this president. I think we need a strong president with credible leadership.

He needs to say to the American people; Mistakes have been made. It's time for a new team. It's time for America to move forward.

I don't know if he will make that decision.

BLITZER: Senator Durbin, thanks very much for joining us.

DURBIN: Thank you, Wolf.

BLITZER: Still to come here in THE SITUATION ROOM, the man at the center of the leak investigation, Joe Wilson, he will join me live. That's coming up. We will find out why -- what he's saying about the White House now.

And the royals to America -- Prince Charles and Camilla make their first official joint visit. We will have that story, much more, lots of news.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: You're back in THE SITUATION ROOM. Welcome back.

In Samuel Alito, President Bush has nominated a judge with a significant paper trail. Now bloggers are going online to sort through his record.

Our Internet reporter, Abbi Tatton, is checking the situation online. She's joining us live -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Well, Wolf, one of the complaints about nominee Harriet Miers previously was the lack of the paper trail.

That's not something, in this case, of Judge Samuel Alito -- and, as you said, bloggers going online and linking to some of his opinions. You can read back the last 15 years of his time on the 3rd Circuit. You can read his opinions, a lot of them linked here at scotusblog.com -- lots of bloggers looking at his background today.

But one of them, scotusblog, focuses just on the Supreme Court. It's run by the law firm of Goldstein & Howe here in Washington, D.C. -- links through there to the 3rd Circuit on opinions such as sex discrimination. But one of them that's getting a lot of attention today from bloggers is the 1991 dissent that Judge Samuel Alito wrote in Planned Parenthood vs. Casey, in which he argued in favor of spousal notification in the case of abortion.

Now, lots of people talking about this -- what thinkprogress, for example, is saying on the left is that this would overturn Roe vs. Wade. Patterico on the right, this is a legal conservative blogger here out on the West Coast, saying that this case is going to ground zero of this battle here, dissecting that opinion, piece by piece, over there at Patterico.com.

So, all these opinions, you can read online -- Wolf.

BLITZER: All right, good. Thanks very much, Abbi. I'm sure a lot of our viewers will want to do that.

Zain Verjee is standing by at the CNN Center in Atlanta with a closer look at some other stories making news.

Hi, Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Hi, Wolf.

Flags on government buildings will be flown at half-staff on Wednesday, the day Rosa Parks will be buried in Detroit. Parks died last week at 92. She lay in honor in the Capitol Rotunda yesterday and today, the first woman ever afforded the honor. Fifty years ago, Parks refused to give up her seat on an Alabama bus to a white man. The incident ignited the modern civil rights movement.

The United Nations is demanding cooperation from Syria in its investigation of the killing of a former Lebanese leader, Prime Minister Rafik Hariri. The U.N. Security Council voted unanimously today in favor of a resolution threatening further action if Syria does not comply.

The former Lebanese prime minister was assassinated by a car bomb on the 14th of February. A U.N. report concludes that Syria and some Lebanese officials were involved.

Canadian officials say they have detected bird flu in several wild birds. What they can't say yet is whether or not it's the deadly strain of bird flu blamed for dozens of deaths in Southeast Asia. The 30 wild ducks carrying the flu were found in Quebec and in Manitoba. One Canadian health official says it will take at least a week to determine the exact flu strain.

Thailand, meantime, reports its 20th human case of the potentially fatal avian flu, the closest case to heavily pop -- populated Bangkok so far. Health experts say, they believe that a 50- year-old woman was contaminated by chickens that she owned. A team was sent to disinfect the woman's suburban home and a three-mile radius -- Wolf.

BLITZER: Zain was off last week, filling in on "AMERICAN MORNING."

Good to have you back in THE SITUATION ROOM.

VERJEE: Thanks, Wolf. It's good to be back.

BLITZER: Zain...

VERJEE: Thank you.

BLITZER: ... we will be checking back with you soon.

Still to come here, the man at the center of the CIA leak case, Joe Wilson. He will be live in THE SITUATION ROOM. That's coming up. We will find out why he thinks someone at the White House was trying to get him back.

And, a little bit later, the story that rocked Dan Rather and CBS News -- the fired television producer Mary Mapes tells her side of what happened. We're taking you behind the story.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Much more coming up on the CIA leak investigation. New developments today.

Also, the Supreme Court nomination of Samuel Alito. We're going to get to all of that coming up. First, let's go to CNN's Susan Lisovicz. She's filling in for our Ali Velshi.

She's got the "Bottom Line" today.

Hi, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Wolf.

In focus today, Merck sweating out the second Vioxx trial, which is winding down after seven weeks of testimony. At issue, whether the painkiller caused an Idaho postal worker's heart attack four years ago.

Lawyers delivering closing arguments today and this case seen as pivotal in determining the future of more than 6,500 other pending lawsuits filed by users of the blockbuster drug.

Merck, you may recall, lost the first Vioxx trial this summer and was ordered to pay $253 million to the widow of a Texas man, although that is widely expected to be knocked down substantially.

Merck withdrew the drug from the market last year after studies showed increased risk of heart attack and stroke in long-term users.

Now to economic news.

Personal spending rose half a percent last month. That was mostly due to high gas prices. And when you take out energy prices, spending was actually down nearly half a percent.

Incomes, meanwhile registered a big jump, but that was due to insurance payments from Hurricanes Katrina and Rita.

And the savings rate, which is the percentage of after-tax income Americans sock away remained in negative territory in September for a fourth straight month.

The data comes a day before Fed policymakers meet. Alan Greenspan and company widely expected to hike rates by another quarter percentage point tomorrow, bringing the key rate to 4 percent.

And of course, we'll bring that to you when it happens.

For now, Wolf, back to you.

BLITZER: All right, Susan, we'll check back with you when the markets are about to close, less than a half an hour from now.

Susan Lisovicz, reporting.

Just ahead, who is Samuel Alito and where does he stand on some of the more controversial issues that the U.S. Supreme Court will have to rule on?

We'll take a closer look. That's coming up and it's been an especially deadly month for U.S. troops in Iraq. We're talking about October.

That story coming up. Stay with us.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Judge Samuel Alito in the spotlight as the president's pick to replace Justice Sandra Day O'Connor on the U.S. Supreme Court.

CNN's Brian Todd is here, he's got some new details on this nominee.

Brian, what did you pick up?

BRIAN TODD, CNN CORRESPONDENT: Wolf, this nominee's legal credentials are certainly impressive, but what many legal analysts are looking at right now is what he would bring to the court idea ideologically. And in that regard, some interesting comparisons are already being made.

(BEGIN VIDEOTAPE)

TODD: Fifty-five year-old Samuel A. Alito is held in high regard by many conservatives.

Has history with the president's family and is often compared to Justice Antonin Scalia. In fact, he's been nicknamed "Scalito" because of his Italian background and what some consider his ideological likeness to Scalia.

In a 1991 case, Alito was the only dissenting voice on the Third Circuit Court of Appeals when it struck down a Pennsylvania law requiring women to notify their husbands if they planned to get an abortion.

But in a later ruling, he agreed with other judges who found a New Jersey law banning late-term abortion, unconstitutional.

PAUL FISHMAN, FORMER ASSISTANT US ATTORNEY IN NEW JERSEY: I don't think he's a zealot, I don't think he's particularly ideological.

TODD: Alito is a New Jersey native. A 1975 Yale Law School graduate and rose through the assistant attorney ranks of the U.S. Department of Justice. During that period, Paul Fishman worked for Alito.

FISHMAN: He's very meticulous. He's a very studious guy. He's not a glad hander. He's not particularly gregarious; he's actually kind of shy.

TODD: In 1990, he was named by President Bush's father to the Third U.S. Circuit Court of Appeals and has been there ever since. Friends and former colleagues say, even with his unassuming presence, he asks probing questions and can pick apart any legal argument.

Now, the nominees selected to replace retiring Justice Sandra Day O'Connor recall a connection to her as well. From 1982, when he argued his first case before the Supreme Court.

SAMUEL ALITO, SUPREME COURT JUSTICE NOMINEE: I argued my first case before the Supreme Court in 1982 and I still vividly recall that day. I remember the sense of awe that I felt when I stepped up to the lectern, and I also remember the relief that I felt when Justice O'Connor, sensing I think that I was a rookie, made sure that the first question that I was asked was a kind one.

TODD: Alito won that case and went on to win most of the 12 cases he argued before the high court. Alito has earned exemplary reviews from the legal community, but his conservatism may spark an ideological battle for confirmation. And for that, Alito says he draws great strength from his wife Martha and their two children.

(END VIDEOTAPE)

TODD: One other connection Judge Alito has to the current Bush administration, when he was U.S. attorney for the district of New Jersey from 1987 to 1990, his first assistant was a lawyer named Michael Chertoff, now, of course, the homeland security secretary -- Wolf.

BLITZER: Small world.

Thanks very much, Brian Todd reporting.

Up next, the new nominee to the supreme court plus the CIA leak case. Two major stories that are the talk of this town. We are going to talk about them with the Republican National Committee chairman, Ken Mehlman. He's standing by.

And coming up in our next hour, the man whose wife is at the center of the CIA leak case, Ambassador Joe Wilson. He will join us live here in THE SITUATION ROOM. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

We heard some Democratic reaction earlier this hour to the nomination of Judge Samuel Alito to the U.S. Supreme Court. Dick Durbin had joined us. Let's get some Republican reaction right now to that and the CIA leak case.

We are joined by the GOP party chairman, Ken Mehlman. Ken, thanks very much for joining us.

KEN MEHLMAN, CHAIRMAN, REPUBLICAN NATIONAL COMMITTEE: How you doing, Wolf? Thanks a lot. BLITZER: Good to have you here in "The Situation Room."

MEHLMAN: Good to be here.

BLITZER: You've worked so hard since you became chairman to bring in Hispanics, to bring in women, minorities into the Republican Party.

Are you disappointed that the president has come up with another white man to fill this slot on the Supreme Court?

MEHLMAN: Not at all.

I think that Sam Alito is a fantastic choice. This is someone that will be good for every American from everywhere. When you think about it, this is someone who has twice been confirmed unanimously by the United States Senate, more experienced than any nominee in 70 years.

BLITZER: But wasn't there a woman that could have done that?

There's only going to be, if he's confirmed, one woman -- Ruth Bader Ginsburg -- on the Supreme Court out of nine seats there and women are 50 percent-plus of the American population.

MEHLMAN: Well, the fact is this is someone that's going to represent all of the American people.

And the president considered a lot of people, including women, including lots of different folks from lots of different backgrounds, but what was unique I think about Judge Sam Alito is this: Every part of the experience that lawyers have who come before the court he's had and he's done well.

BLITZER: Wasn't there a woman who could do that?

MEHLMAN: Well, look, it's hard to find anybody that's had as distinguished a career as he has. Think about it, 15 years as a Court of Appeals judge...

BLITZER: There are other women on the Courts of Appeal.

MEHLMAN: There are.

But to be a Court of Appeals judge, work in the solicitor's office, an extremely well-regarded prosecutor -- all of these are examples of why this president chose this man. I think he'll be a great choice.

And what I hope, Wolf, we won't see is the kind of partisanship that Chuck Schumer and some folks have already started against him. I think that's exactly the wrong approach.

We need people to think in terms of qualifications.

This man deserves a fair hearing. He deserves a process that, like Judge Roberts, was appropriate for the United States Senate.

BLITZER: And you know there's going to be a lot of disappointment among Hispanics.

MEHLMAN: I don't think there will be.

I think that when Hispanic Americans, African-Americans, females, you name it, look at Judge Alito's record, look at his reputation for fairness, look at how distinguished his career is, they're going to see someone that they can be proud of, that all Americans can be proud of because of what he's going to do in terms of ensuring justice is done in this country.

BLITZER: Let's talk a little bit about the CIA leak, the bombshell on Friday, the indictment of Lewis "Scooter" Libby, his resignation that followed.

Representative Tom Davis from Virginia, Republican, quoted in the Washington Post Saturday as saying this: "I am very disappointed in Libby and the White House and the vice president and the president. They should have taken care of this a long time ago. They should have done their own investigation. They're going to get very little sympathy on Capitol Hill, at least from me."

And he goes on to say, "They brought this on themselves."

That's not a flaming liberal who's talking or a Democrat; that's a good, conservative Republican. And it's fair criticism, I suppose.

MEHLMAN: I'm not sure that it is.

Look, Tom Davis is a friend of mine. I like him. I think he's wrong in this case.

The fact is that Pat Fitzgerald conducted a thorough and a serious investigation. As the president said the other day, it's serious.

Scooter Libby is someone I know very well. I consider him to be a friend. He's innocent until proven guilty, but these are serious charges.

And we look forward to having the trial phase of this where these charges are considered and appropriate actions taken.

I think it was right of Mr. Libby to remove himself from the White House given the indictment. He is innocent until proven guilty.

Being taken very seriously at the White House and has from the beginning. So I think that Mr. Davis, if you look at the facts, is in fact wrong.

BLITZER: Here's the poll, the latest CNN/USA Today/Gallup Poll.

Are the charges against Scooter Libby an isolated incident? Thirty eight percent. Or signs of low ethical standards in the Bush administration? Fifty six percent.

A solid majority believe that this is a sign of low ethical standards -- you've got a problem.

MEHLMAN: I don't think we do.

And in fact, one of the good things about our country is that when justice is done, it's not done by polls; it's done by evidence in court and it's done in a process that isn't about public opinion or anything else.

It's not about politics; it's about justice and it's about an investigation. And that's what we're seeing right now and that's the appropriate way it ought to be.

BLITZER: Listen to what Ken Duberstein, a former Republican, White House chief of staff under Ronald Reagan, told me here in "The Situation Room" on Friday.

Listen to this.

(BEGIN VIDEO CLIP)

KEN DUBERSTEIN, FORMER WHITE HOUSE CHIEF OF STAFF: I think there are an awful lot of highly qualified people in the White House, but a second term, some people start getting tired. They've been there for five years. You need that new spark.

(END VIDEO CLIP)

BLITZER: He thinks you need a reshuffle in the White House.

What do you think?

MEHLMAN: I think that the White House does a good job.

I think the men and women who serve in the White House work very hard for this country.

If you stop and think about this, Wolf, think of this administration -- no president in a generation has done more to change our government based on the government's inability to do important things. The first thing he did was No Child Left Behind because too many kids were being left behind.

The Department of Homeland Security and the Patriot Act were all about changing government, reforming government...

BLITZER: The question is...

MEHLMAN: ... based on the failure of the bureaucracy.

BLITZER: But do you think he needs some new blood in there right now?

MEHLMAN: I think this president needs to stay focused on, and will stay focused on, policies that will keep our nation safe and that will keep the economy going forward.

BLITZER: Your name has been mentioned as someone who -- you used to be a political director at the White House during the first term.

Are you ready to go back and work for the president directly?

MEHLMAN: I love my job as RNC chairman.

Unless being anchor of "The Situation Room" comes open, I'm pretty happy with what I'm doing.

(LAUGHTER)

BLITZER: You want to put your hat in the ring for that job?

If you do, let me know.

MEHLMAN: I heard the hours are very good.

(LAUGHTER)

BLITZER: We've been working hard here.

Ken Mehlman, thanks very much.

MEHLMAN: Thanks a lot.

BLITZER: Not as accurate though.

The Republican party has been known to reach out to the blogosphere. Let's get some more on that.

Our Internet reporter Abbi Tatton standing by.

What are you picking up Abbi?

ABBI TATTON, CNN CORRESPONDENT: Well, Wolf, if Ken Mehlman is about to run out of THE SITUATION ROOM this afternoon that's because he's about to do a conference call with bloggers.

The Republican National Committee engaging the blogosphere here. They tried it a couple of weeks ago when there were a lot of conservative bloggers who were loudly opposed to the nomination of Harriet Miers.

Today they're trying it. Pushing the case for this new nominee together with Patrick Ruffini, this is ecampaign director over there engaging the blogosphere.

And, you know what, on the conservative side it doesn't look like they're going to have too much of a difficult road ahead of them. Lots of support out there for this nominee.

Blogs for Bush, for example, already putting together the confirm Alito coalition -- Wolf. BLITZER: All right, Abbi. Thank you very much.

Still ahead here in THE SITUATION ROOM. H

is wife was an undercover CIA operative until someone leaked her name. Now, there's an indictment. Ambassador Joe Wilson will join us to talk about the case that's rocking the White House.

Plus, the storm called Beta. We'll show you the damage this former hurricane did and where it is right now.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Jack Cafferty has been going through your e-mail. He's joining us once again from New York -- Jack.

CAFFERTY: Following Friday's indictment of Scooter Libby in the CIA leak case, the special prosecutor Patrick Fitzgerald's continuing his investigation. And it's possible more charges could come.

The question this hour is, "is the Scooter Libby indictment the end of the CIA leak case?"

Celia, Lawrence, Kansas, home of the Jayhawks, "No. Under the White House rock, are more unethical creepy callies willing to slash and burn national security for partisan purposes. I believe Fitzgerald will eventually expose the entire illegal malignancy now covered by the scum of Libby's lies."

Tiffany in Santa Monica, California, "Scooter Libby is not the end of this case, whether any other members of the Bush administration are indicted or not remains to be seen, but they should. Libby got his orders somewhere," she writes, "but there will be some major fallout as a result. The whole case has severely worsened the condition of trust between the government and its citizens."

Laurence writes, "it may not be all of the story, but five will get you ten. If the administration gets its way it will be the end of the investigation. I would venture to say if this were pursued to its fullest extent, it would eventually lead all of the way back to the plans and preparations to go to war with Iraq."

Robert in Chicago writes, "Libby indictments will never end because the media is in love with it." Indeed we are. "The people of the United States don't care about these indictments. Further more they don't care about Valerie Plame and Joe Wilson."

Pat in New York writes, "that depends on if Scooter is willing to go to jail for the Bush team" -- Wolf.

BLITZER: We'll talk in the next hour about some of your predictions. And fortunately you don't have to eat every brick of the Time Warner building where you are, Jack. We're going to get to that in the next hour. CAFFERTY: Fine.

BLITZER: Still ahead, orange prices juiced. What does it mean for growers and for the price of your breakfast? We'll bring you the bottom line.

Also in our next hour, my live interview with the former U.S. ambassador, Joe Wilson. He and his wife, targets of the CIA leak. How does he feel now that an indictment has been issued? You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: It's almost time for the markets to close and the closing bell. Let's check in once again with our Susan Lisovicz. She's in for Ali Velshi this week. Hi Susan.

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