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Harris On Brink Of Crucial V.P. Pick As She Locks Votes To Be Nominee; Dow Closes Down 600-Plus Points As New Jobs Report Raises Recession Fears; U.S. Sending Warships To Mideast Amid Fears Of Iran Revenge Attack; Emotions Run High As Americans Freed In Prisoner Swap Back In U.S.; U.S.: Venezuela President Lost Election Despite Claim Of Victory. Aired 6-7p ET

Aired August 02, 2024 - 18:00   ET

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

[18:00:00]

BORIS SANCHEZ, CNN HOST: Happening now, Kamala Harris on the brink of choosing a running mate as she wins enough votes from Democratic delegates to lock up the party's presidential nomination. We'll tell you what we're learning about the make-or-break interviews Harris is planning with top V.P. prospects this weekend.

Also tonight, breaking news on the economy, the Dow Jones Industrials closing down more than 600 points, the market's sinking as a weaker than expected jobs report raises fears of a potential recession.

Plus, amid rising tensions in the Middle East, the U.S. military taking new action tonight, sending warships and other assets to the region as Iran vows retaliation against Israel following the killing of a Hamas leader. We're covering this breaking story at the Pentagon in Israel and in Israel this hour.

Welcome to our viewers in the United States and around the world. Wolf Blitzer is off today. I'm Boris Sanchez and you're in The Situation Room.

Our top story tonight, Kamala Harris is about to make the biggest decision yet in her new presidential campaign, as she's also making history, sealing the votes needed to become the first woman of color to lead a major party's ticket.

(BEGIN VIDEO CLIP)

KAMALA HARRIS, U.S. VICE PRESIDENT, PRESUMPTIVE DEMOCRATIC PRESIDENTIAL NOMINEE: Yes, I'm happy to know that we have enough delegates to secure the nomination. And later this month, we will gather in Chicago, united as one party, where we're going to have an opportunity to celebrate this historic moment together.

(END VIDEO CLIP)

SANCHEZ: CNN's political team is covering all the new developments in the race for the White House. Let's first get to Jeff Zeleny. Jeff, the next 72 hours are going to be crucial for her campaign as she sifts out a V.P. pick. JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: They certainly will. I mean, we are told that she has not yet made a decision. We believe she has some finalists. I mean, but the question is who those are. But she's going to have face-to-face meetings, we're told, over the weekend at the Naval Observatory. She had nothing on her public schedule today or tomorrow or Sunday, but she is in crunch time making a decision, I'm told, looking for a governing partner, also trying to find someone she's comfortable with.

What's so striking about this is that four years ago, next week, she accepted that phone call from Joe Biden to be his running mate. Now, she is going to be making that offer to someone else, something that she hasn't necessarily been planning on. So, she doesn't have a long relationship with a lot of these candidates.

But Pennsylvania Governor Josh Shapiro is seen by many Democrats as a leading contender. Why? He's a good campaigner. There's no doubt about it. He's been out every single day kind of showing this, but also Pennsylvania, a must win state.

However, is she going to go geography or biography? There's no question that the astronaut sort of background of Senator Mark Kelly of Arizona, also so impressive and important, also the governor of Minnesota, Tim Walz, has been a fiery campaigner. He's the one who branded the Trump campaign as weird. And a lot of Democrats are taking notice of that, and then a few other potential contenders as well.

But we do believe that this weekend is when she will decide who she's most comfortable with and she and her husband, Doug Emhoff, will have a meeting perhaps stretching some period of time, private, of course, and then she'll roll this person out at a rally on Tuesday in Philadelphia. I'm told do not read anything into the Philadelphia, even though Josh Shapiro is the governor of Pennsylvania, because other candidates also -- she's also going to Arizona by the end of the week, so we're not sure about that. But all eyes are on Governor Shapiro.

SANCHEZ: Yes, as you said, not a position she expected herself to be in, not a position really any of us expected her to be in a couple months back.

ZELENY: Even two weeks ago.

SANCHEZ: Yes.

ZELENY: President Biden was still a candidate.

SANCHEZ: Yes. Kristen Holmes, over to you. Focusing on the Trump campaign now, they are expected to hit the campaign trail tomorrow, he and Vice Presidential nominee J.D. Vance. They've already been outspoken criticizing some of these potential Democratic nominees.

KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Yes, particularly focusing on Governor Shapiro. Clearly, they believe that he is a very high contender on this list. Now, one thing to remember about Donald Trump is that even before he chose J.D. Vance, one of the things that he has said routinely is that he doesn't think vice presidents matter, that that candidate does not matter, it's always about the top of the ticket. But that doesn't mean they're not paying very close attention and that his team is already preparing opposition research.

So, here's what we heard from Trump today.

[18:05:01]

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Vice President Kamala Harris is now deciding on her running mate. So, it looks like the finalists are Josh Shapiro, governor of Pennsylvania. Does he help her get the votes in Pennsylvania? What about Mark Kelly? Does he help her with the border in Arizona?

DONALD TRUMP (R), FORMER U.S. PRESIDENT, 2024 PRESIDENTIAL NOMINEE: Can I tell you, I don't care. Let them do whatever. They still want to have open borders. If she picks Shapiro, she's going to lose the Palestinian vote, and that's fine. Everybody has their liabilities. I think if she picks Shapiro, who happens to be Jewish, she loses her little Palestinian base.

(END VIDEO CLIP)

HOLMES: It's obviously unclear what he means by little Palestinian base. I think what he is probably referring to is some of the backlash that we have seen over the Biden-Harris policies when it comes to Israel. But, again, that's not a little Palestinian base.

However, they do seem to have focused on Josh Shapiro for some reason. It's not just this. We've also heard other campaign members talking about it, senior advisers talking about Josh Shapiro, hitting him on various things. So, obviously, we'll see. I mean, maybe it's because it's a little bit threatening, the fact that he's widely popular and it's a critical state.

SANCHEZ: J.D. Vance described him as like a poor man's Obama. We'll get to those comments in just a moment.

But, Jeff, to you, speaking of former President Obama, the Harris campaign added some Obama veterans, not only veterans of his administration, but his campaign as well.

ZELENY: They did. And David Plouffe is the name that certainly stood out. And this has been really in the works and in discussions for a couple of weeks. He, of course, was the architect of the Obama campaign back in 2008. He devised the strategy and got Senator Obama elected the first time and worked on his re-election as well. Several other names as well. Stephanie Cutter is going to be coming on board as a senior adviser in charge of messaging. Mitch Stewart, he is in charge of the battleground campaign. It matters because this is something -- and David Binder is going to be the upholster. It matters because they know the path to victory. I mean, you would naturally choose someone from a winning campaign. But this is still being run by the Harris team. The same campaign manager and campaign chair are staying in place. But these advisers now were just coming to sort of supplement them. And one told me today it's an all hands on deck moment. That's why they're coming on board.

SANCHEZ: Arit John, as Jeff said, you want to have hands that have won before on board, but should we read something into these hires when it comes to strategy?

ARIT JOHN, CNN NATIONAL POLITICAL REPORTER: I think the Harris campaign would tell you that, you know, we're 90 something days out from the election. This is a time to staff up. This is -- I mean, to Jeff's sources point, and all hands on deck situation where they've completely upended their campaign. At the same time, there's sort of a delicate dance where you can't overhaul a campaign in three and a half months. But as the candidate, you want to put your stamp on it.

And we've seen Harris do that in terms of, you know, completely changing the message. It's not about democracy. It's about freedom. She's prosecuting the case against Trump. We've seen her just sort of try to put her unique spin on this, but at the same time manage the campaign that she inherited.

HOLMES: And I would say, just one thing to add to that, I think you might see some changes at the Trump campaign as well. I mean, this is a critical time in which there are just a few months left. And we've heard from a lot of allies who believe that this is a different race now.

Now, if you talk to the campaign, they say, it's the exact same race, we were going to run the exact same way we did against Joe Biden. In fact, some of the people on the outside, they say, let's look back to 2016. This is roughly the same time that Kellyanne Conway got brought into the Trump campaign.

There are changes that are naturally made anyway. Obviously, this is extenuating circumstances because Harris just became the nominee, and she also just became a candidate right before that. But I think you're looking at likelihood of getting more staffing for the Trump campaign, changing strategy in some ways. I mean, this is normally a time in which you'd see this kind of beefing up and moving forward.

SANCHEZ: Yes, and perhaps as you noted with the Shapiro reporting, perhaps a sign that they're taking this way more seriously than they would have going up against Joe Biden.

Kristen, Arit, Jeff, a pleasure to have you on. Thanks so much.

Let's chat with our panel now. Some political experts are joining us. Bill de Blasio is with us. Bill, Harris obviously has won enough delegates to be the party's nominee. Her campaign is touting this massive fundraising haul in July, $310 million. That doubles Trump's campaign. How does that translate from momentum into meaningful change in the race?

FMR. MAYOR BILL DE BLASIO (D- NY): Well, Boris, I don't think we've seen this kind of speed and intensity of a change in a race in our lifetime. I mean, we literally went from a situation where, unfortunately, President Biden was losing across the board to now Kamala Harris basically tying up this ballgame and, you know, able to win it. So, that extraordinary momentum and energy in such a few days, it's really been very few days, is quite striking.

What she has to do now, I think, is really deepen the message, that the money is the delivery mechanism, but the message is what actually moves people.

[18:10:01]

And if you watch her Atlanta rally, I thought it was really strong. I agree that she is finding themes that the party really needed. The question of democracy is on everyone's mind, but I don't think it was the winning hand. I think the freedom frame is much sharper. Much more gets to the heart of what people are going through, particularly women, protecting the right of women to make decisions about their own bodies.

So, I hope with the new Obama team coming in who are exceptional at message, and we're going to see a more disciplined, message focused campaign that all that money now can be delivery mechanism for.

SANCHEZ: Maria Cardona, how do you see Harris now beefing up her team with these high-profile Obama alumni?

MARIA CARDONA, CNN POLITICAL COMMENTATOR: I think it's wonderful. And, you know, you asked just a little bit ago, you know, what is the strategy here with bringing on this team? Well, the strategy is to win. Everyone who has been brought on has been part of winning campaigns, whether that's twice with Obama, when Joe Biden was elected. And so they understand what it takes to win.

They are also consummate team players because it is really important. She's not going to push aside the team that she currently has around her because they also have been very successful, this lightning in a bottle that has occurred since she became the candidate and now the nominee. And it's a historic day today, Boris, as you know, you have noted it, and I have had the pleasure of being a delegate to cast my ballot for the first woman of color that is going to be the nominee of a major party and hopefully the first woman president of the United States.

And so I think that the strategy is to bring this disparate group of strategists and operatives together. They all know how to win. They all know what needs to happen in the next 90-something days. It's a sprint, but I think it's a sprint and part of the race that this group knows how to win.

SANCHEZ: Now, Scott Jennings, I'm curious to get your reaction to the fundraising numbers in the same time period that Trump was coming off the RNC and that attempted assassination. Kamala Harris was able to double him in fundraising. What does that say to you?

SCOTT JENNINGS, CNN SENIOR POLITICAL COMMENTATOR: Well, it tells me how much Joe Biden sucks. I mean, obviously you had all these donors who didn't want to give to Joe Biden. Now they want to give to somebody else. And Trump had a great month in June. The reality is they're both going to have plenty of money.

I actually think that the race has changed tactically in one key way, and money makes a difference in that, and it is on television. I don't think the Trump versus Biden race T.V. ads were going to matter all that much. But with Harris in the race, the Trump T.V. and what they're trying to do to define her matters a lot. And the Harris T.V. and what they're trying to do to shove back on that also matters a lot.

So, I think we went from a race with two really well-defined candidates to a race with one candidate who the American people know her, but they don't know a lot about her. And so the race is on and T.V. and paid media, it makes a huge difference in that.

SANCHEZ: I want to pivot now to the veep stakes. Bill, our Jamie Gangel is reporting that Vice President Harris' top consideration is electability. And as we were chatting with our reporters a moment ago, there's been a lot of focus on Governor Josh Shapiro of Pennsylvania. It's a key battleground, 19 electoral votes.

Now, progressives have argued that his stance on the Gaza issue, especially his rhetoric around pro-Palestinian protests, is a liability. Do you see it that way?

DE BLASIO: No, I actually don't, Boris. I think the key issue is going to have to be what we hear from our presidential nominee. And I think she has already set a really balanced tone. I've been watching this very carefully as a New Yorker, and as someone who has a very close relationship with Israel, looking at the really smart balance that she has struck.

Because what she said is, you know, we do care about the suffering of the Palestinian people, and we're not going to allow this status quo to continue. I think that's been a message a lot of people in this country, a lot of people in the party needed to hear that that mattered. But at the same time, everyone knows that Kamala Harris is someone who believes in the state of Israel and will defend it.

I think President Biden tried to make that separation, but it took quite a while to get to that point. The vice president, I think, has done a better job, soon, you know, to be, I hope, the president, Kamala Harris has done a better job really making clear to a lot of people out there who just are feeling the human element that she cares about that too.

SANCHEZ: Scott, I mentioned a moment ago some of the attacks from J.D. Vance against Governor Shapiro. Shapiro responded today. Let's listen to both.

(BEGIN VIDEO CLIP)

SEN. J.D. VANCE (R-OH), VICE PRESIDENTIAL NOMINEE: There's a lot of talk it's going to be this guy Josh Shapiro from Pennsylvania who -- you know, I've seen a couple clips of him talking.

[18:15:02]

He talks like Barack Obama. It's like if I did try to do a really bad impression of Barack Obama, that's what it would sound like is this guy, Josh Shapiro.

GOV. JOSH SHAPIRO (D-PA): Barack Obama was probably our most gifted orator of my time, so it's kind of a weird insult, I guess.

J.D. Vance is a total phony baloney. He is the most inorganic candidate I think I have ever seen on the national stage.

(END VIDEO CLIP)

SANCHEZ: What do you think of the exchange and that sort of preview of Josh Shapiro potentially being an attack dog for Harris?

JENNINGS: Guys, you're both pretty, it's fine. We all get it Look, my view is this. Shapiro is objectively their best choice. He is the most popular person from the state that they have to win. The problem, I mean, everybody's tiptoeing around it, is that Kamala Harris has a large chunk of her base, there's awash in anti-Semitism, they hate Josh Shapiro, and she's going to have to figure it out.

If she does, and she picks him, I actually think it would be a pretty interesting leadership moment for her to tell all these people who are, you know, awash in this anti-Semitism that, hey, I'm not going to put up with it. It would be an interesting message for her to do.

So, I think he's the best choice. She's got interesting people, but Pennsylvania, they can't win without it. So, he's no guarantee, but probably better there than anybody else.

SANCHEZ: Maria, I'll give you a quick opportunity to respond.

CARDONA: Well, here's what I think we're missing from this. She is going to do her homework. She is a whip smart, tough as nails prosecutor. That's what she does. She's going to take a look at all of the paper. She's going to do her pros and cons. She's going to do her Venn diagrams. She's going to know exactly everything she needs to know on paper.

But she is also somebody who has had the role of vice president for three and a half years. She knows what it takes. She knows what she wants in a Vice President. We've never had anyone who has risen from vice president to the nominee of a party, at least in recent history, so better than anyone. She knows instinctually what she wants. She's going to go with that connection, with that personal connection that she knows is what she needs to have in a governing partner.

And I think at the end of the day, it's going to be all of that with that on top of it, that instinctual personal connection is what's going to matter.

SANCHEZ: I appreciate you all. Thanks for the perspective and for sharing part of your Friday evening with us.

CARDONA: Thank you.

SANCHEZ: Up next, breaking news coming from the Pentagon, the Defense Department just announcing the deployment of American warships to the Middle East, the newest sign of increased worries of a possible attack on Israel by Iran.

(COMMERCIAL BREAK)

[18:21:53]

SANCHEZ: We're following breaking news this hour from the Pentagon, the U.S. sending new military defenses to the Middle East as Iran threatens retaliation for the killing of a Hamas leader on its soil.

CNN Chief International Correspondent Clarissa Ward is live in Tel Aviv, Israel, for us. But let's start at the Pentagon now with CNN Pentagon Correspondent Oren Liebermann.

Oren, what are you hearing from officials there tonight?

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: Boris, this is arguably the largest shift of U.S. forces to the Middle East, to the region, since the beginning of the war. Now, the U.S. sending a carrier strike group with the USS Abraham Lincoln to the region. That will replace a strike group that is currently operating in the Gulf of Oman, but that's not it. According to a statement from the Pentagon, Defense Secretary Lloyd Austin also ordered destroyers and cruisers both to the Middle East and to the Mediterranean Sea.

Those warships are capable of intercepting ballistic missiles, and that's something we've seen before in the Iranian barrage that was launched on April 13th or in mid-April. It was destroyers, U.S. destroyers, in the Mediterranean Sea that intercepted several of those launches, so they may be in position to do that once again, depending on what Iran's anticipated retaliation looks like.

Austin also ordered a fighter squadron to the region. It's unclear from the statement what types of fighters or where they will go, but we have seen U.S. fighters be instrumental in intercepting certain types of launches, for example, Houthi launches over the course of the past several months. This is a formidable amount of U.S. forces and capabilities headed to the region. Defense secretary -- I'm sorry, John Kirby said earlier today why the U.S. is making such a public move.

(BEGIN VIDEO CLIP)

JOHN KIRBY, SPOKESPERSON, WHITE HOUSE NATIONAL SECURITY COUNCIL: We've heard the supreme leader loud and clear that he intends to avenge this killing of a Hamas leader in Tehran and that they want to conduct another attack on Israel.

We can't just assume that we aren't also potentially going to be victims of that kind of an attack. So, we've got to make sure we've got the right resources and capabilities in the region.

(END VIDEO CLIP)

LIEBERMANN: In terms of when this Iranian retaliation is expected, U.S. officials say it could come as soon as the coming days.

SANCHEZ: And, Clarissa, how is that being received? How's that being viewed in the region right now?

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, the region is very much on edge, Boris. We saw thousands of mourners today attending the funeral in Doha, in Qatar, of the assassinated political Hamas leader, or Hamas' political leader, Ismail Haniyeh. Among the attendees, the emir of Qatar himself.

The Qataris obviously have been an integral part of the ceasefire talks, and we are seeing increased pressure on Israel again to try to get back to the negotiating table. We saw President Biden telling reporters recently when asked, that he did not think that the assassination of Haniyeh was, quote, very helpful in terms of how those ceasefire negotiations were going. And he went on to voice his concerns about the future of those talks. Take a listen.

(BEGIN VIDEO CLIP)

JOE BIDEN, U.S. PRESIDENT: I'm very concerned about it. I had a very direct meeting with the prime minister today, and very direct.

[18:25:05]

We have the basis for a ceasefire. He should move on it, and they should move on it now.

(END VIDEO CLIP)

WARD: Prime Minister Benjamin Netanyahu announcing just a few hours ago that he will be sending a team of negotiators to Cairo either tomorrow or the next day, as everybody here and across the region is bracing themselves for that potentially imminent attack. Boris?

SANCHEZ: Clarissa Ward, Oren Liebermann, thank you both.

Coming up, back to politics and new CNN reporting on how Vice President Harris' campaign plans to address the economy as a new jobs report misses the mark and sends stocks into a nosedive.

(COMMERCIAL BREAK)

[18:30:14]

SANCHEZ: We're back with breaking news, a nosedive on Wall Street. The Dow Jones Industrials closing down more than 600 points after a new jobs report fell far below expectations.

CNN's Brian Todd is taking a closer look at the numbers for us. Brian, this report is adding to already entrenched anxiety among Americans about the economy.

BRIAN TODD, CNN CORRESPONDENT: It certainly is, Boris, as if people haven't been experiencing enough anxiety already. This jobs report, unemployment numbers that are worsening and the already tough inflation levels have American consumers seriously worried about the months ahead.

(BEGIN VIDEOTAPE)

TODD (voice over): Dave Flannery runs an apple orchard in Wisconsin, and like many Americans, has anxiety about how the economy is trending.

DAVE FLANNERY, RUNS APPLE ORCHARD IN WISCONSIN: Things are really uncertain, not knowing what's going to happen with interest rates, and what's going to happen with the whole economy.

TODD: And today, the uncertainty only grew. The U.S. government out with its jobs report, saying the economy added about 114,000 jobs last month, less than expected, and the unemployment rate is now the highest it's been since October of 2021.

DAVID WILCOX, PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS: It's another element of evidence on top of a long string of evidence that we've had that the labor market is softening. Consumers have been telling us for quite a while now that the job market isn't as hospitable for job seekers as it was a year ago, two years ago.

TODD: The job news sent the stock market tumbling today, but the market had already taken some serious hits in the few days prior to this report. Why?

CATHERINE RAMPELL, CNN ECONOMY AND POLITICS COMMENTATOR: The alarm that you see in the stock market and potentially among consumers is about worries that things could potentially get worse.

TODD: Inflation has fueled Americans' psychological fears about the economy. A Gallup poll taken last month found seven in ten Americans believe it's getting worse.

UNIDENTIFIED MALE: I got adult children now who are starting out, and how can they be able to survive with what it costs in today's world?

UNIDENTIFIED FEMALE: Inflation is really hitting a lot of people in a hard, hard way.

WILCOX: American households are still understandably unhappy about the economic situation. A key reason for that is because that cart of groceries that used to cost them $100 now cost them $130.

TODD: And new questions are being raised about whether the Federal Reserve has waited too long to lower interest rates.

RAMPELL: This puts even more pressure on the Federal Reserve to cut rates in September. Markets widely expect that the Fed will cut rates by at least a quarter point at its next meeting. TODD: But analysts also say we shouldn't overreact, that the U.S. economy is still very strong.

WILCOX: The fundamentals of the economy actually are quite solid today. Inflation has been high, but it's come way down and it's now close to the Fed's 2 percent objective. This is a good labor market for people who want to work and are willing to seek those opportunities, even if that may mean, for example, moving locations.

TODD: In the meantime, analysts offer some practical advice for us as we ride out this uncertain period.

RAMPELL: It's always good to have a nest egg. It's always good to make sure your job prospects are strong. I wouldn't do anything hasty. You know, don't sell all your stocks.

(END VIDEOTAPE)

TODD: The analysts we spoke to say, as far as other practical advice for the average American during this period, try to curb your spending a little bit, especially in the next couple of months, reevaluate big expenditures, like trips or appliances, and especially try to avoid spending with your credit card until those interest rates come down again. Boris?

SANCHEZ: Good advice. Brian Todd, thank you so much.

Let's talk more about the economy and its potential impact on the presidential race. We're joined by CNN Senior White House Correspondent Kayla Tausche and CNN Senior Reporter Isaac Dovere.

Kayla, first to you, these new economic numbers are putting a renewed focus on Vice President Harris and her economic policies, which haven't really been defined at this point, they haven't had to be, right?

KAYLA TAUSCHE, CNN SENIOR WHITE HOUSE CORRESPONDENT: Right. And so far, she's talked about the economy in broad strokes, her desire to continue building up the middle class and to continue making Americans feel good about having a job and about being able to support their families. But she's going to have to put a finer point on it and she's going to have to do it pretty soon.

And when I talk to friends and advisers and officials who have worked with her, there are a few themes that emerge. They say that she is going to be leaning pretty heavily on the Biden budget as a blueprint, as a starting block of sorts, to choose from that what policies she wants to really promote as her own.

And she cares deeply about policies affecting working families, small businesses, and promoting investment in underserved communities. They describe her as pro-business, but also interested in holding business accountable. So, there's no clear -- she's not really a clear ideologue in that way. And so it's really hard for the market and for investors and for donors to a certain extent, too, to understand exactly where she stands on a lot of these issues. [18:35:01]

SANCHEZ: A very fine line to walk through what you just described there.

TAUSCHE: Yes.

SANCHEZ: Isaac, I'm wondering because Bidenomics, as a selling point, didn't really work for President Biden on the campaign trail, right? So how does she sort of, while coupling what Biden's track record achieved for a lot of Americans, also kind of create her own lane?

EDWARD-ISAAC DOVERE, CNN SENIOR REPORTER: Well, look, I think there are two points here before that. Number one is that we have seen election after election that voters views of the economy tend to track with their views of how they think about the president, whoever the incumbent is. And so people were not happy with Joe Biden, long before that debate performance. And that was part of why people were saying that they didn't think the economy was in good shape, even though, today's numbers aside, a lot of indicators are positive about the economy.

The other thing here is that we've got Kamala Harris needing to figure out how she connects with the Biden administration record, but also come in her own place, as Kayla was saying. A couple days ago when she was in Atlanta, she talked about the theme of the economic part of her speech was, I get it, right, and talking about that, what it is that people are going through. Not talking about the economy and these numbers or jobs reports or Bidenomics or it was worse, but how -- people are struggling in the way that they are and making them feel better about it.

The other thing here that's going on is that we know that travel was higher around July 4th than any year previously. A lot of people actually are doing better than they feel about it. And she needs to walk that tightrope.

SANCHEZ: Yes, that perception problem for Biden was nagging. We'll see how it carries over onto her. And to that point, I'm curious about who she's getting advice from on this issue.

TAUSCHE: Well, she has staff inside her office as vice president who advised her on economic policy, but she hasn't had an actual economist on her staff in over two years at this point. She prefers generally to seek the counsel of people outside of her office, a kitchen cabinet of sorts. And in particular, there are three deputy secretaries at the department of energy, treasury and commerce that she leans on, I'm told, quite heavily.

She also has what I'm told is on speed dial, her former economist, a guy named Mike Pyle, who continues to advise her from the outside, who was her economist for a long time before leaving to go to the National Security Council.

So, she has a range of people advising her, as well as people from the business community, someone who is a high up executive at Citigroup for a very long time named Ray McGuire. He's a major donor as well. So, she's getting a lot of input from a wide array of voices. But what exactly the common theme of those conversations still is not clear.

SANCHEZ: It's fascinating to me as hearing Kayla lay out that the vice president wants to help out the little guy, but also be pro-business. It's some of what we heard at the RNC when J.D. Vance was talking about going after corporations. So, it seems like both parties are trying to walk a tightrope of sorts on an economy that, to your point, seems to be doing okay with the exception of the stock market today, but a lot of Americans don't feel that way.

DOVERE: Yes. And, look, the other thing is that we do not know how voters will translate this into the decisions they're making in November. And we don't know, of course, what'll happen between now and November, including on the economy. But part of what Democrats around Harris and on the campaign are thinking about is when you look at what happened in 2022, in the midterms then, a lot of people were very sour on the economy then, inflation was high.

But when it came time to vote, even with that, issues like abortion, democracy, protecting rights, were the things that drove a lot of people to vote. Even if they're saying, I don't like the direction the country's going, I don't like where the economy is, but I'm voting for a Democrat, they turned away from Trump-style Republicans. If that is what happens again in November, then that's good news for Kamala Harris. We'll see if that's where we are.

TAUSCHE: And, Boris, to that, and White House officials say there's still time, too. There's still multiple more job reports, and unclear what the Federal Reserve will do and whether that could use the economy more.

SANCHEZ: It's funny that they say that there's more time. It feels like we're right there. It's like 90-something days away, a very short campaign season for Kayla, Isaac. Thank you both. I appreciate it.

Still plenty more news to come on situation room, including a big move in the federal election interference case against Donald Trump, the judge regaining control of the case today after that Supreme Court ruling on presidential immunity. The latest in just moments.

(COMMERCIAL BREAK)

[18:43:42]

SANCHEZ: Tonight, a judge here in Washington has the power to jumpstart the federal criminal prosecution of Donald Trump. The January 6th election subversion case is now back in the hands of Judge Tanya Chutkan and in her jurisdiction, a month after the U.S. Supreme Court ruling granted Trump sweeping immunity for official acts as president.

CNN Chief Legal Affairs Correspondent Paula Reid is with us now. So, Paula, what exactly does this mean?

PAULA REID, CNN CHIEF LEGAL AFFAIRS CORRESPONDENT: This is significant, Boris, because after Trump was convicted in the New York criminal case, pretty much the other three criminal cases he's facing have been on ice. And now the January 6th election subversion case, it is back in the hands of Judge Tonya Chutkan.

The judge was expected to oversee a trial in that case, but this comes after the Supreme Court's really game changing decision related to presidential immunity. So, we're waiting for Judge Chutkan to reveal her schedule, right, her game plan to approach this, because she has big decisions to make.

First of all, she has to apply the Supreme Court case to the facts that were charged last year. She has to decide, okay, which of these that have been charged are official acts, where he would have immunity, which are unofficial acts that'll survive. But then there's an even more complicated question, where if you're going to charge him with some acts that are deemed unofficial, are any of those supported by evidence that are deemed official acts? Because this is a little known part of the Supreme Court decision where they're like, you can't even use official acts as evidence, even if what you're charging is unofficial.

[18:45:04]

SANCHEZ: Right.

REID: It seems like that's a little in the weeds, but this is the ball game.

And earlier today, I spoke with one of Trumps lawyers, Will Scharf, about how he sees the fight that they have in front of them.

Let's take a listen.

(BEGIN VIDEO CLIP)

WILL SCHARF, TRUMP ATTORNEY: A part of the problem though, is the use of immune evidence during grand jury proceedings that led to the indictment in this case, the Supreme Court was very clear that immune evidence can't be used even in cases involving non-immune conduct.

So in all, we believe that this case has been struck a fatal blow by the Supreme Court, and that there's simply no way to disentangle immune from non-immune based on how the case has proceeded thus far.

(END VIDEO CLIP)

REID: Look, if there is a way to disentangle as well put it, what is immune and not immune, judge, Tanya Chutkan is the one who's going to figure that out. She's been very aggressive on this case, trying to move it forward very quickly, mostly siding with the special counsel. But at this, Boris, it's unclear if this case could if it survives and whatever remains go before the election.

But we spoke to sources who have practiced in front of her. And one of them suggested that they think if Trump is re-elected, she might actually try to do it between election day and inauguration day. SANCHEZ: Wow.

REID: You know what that would do, Boris? It sends this whole thing back to the Supreme Court.

SANCHEZ: Undoubtedly. And it would probably keep us up very late working into the evening hours.

REID: Yes, exactly.

SANCHEZ: Paula Reid, thank you so much for that.

Coming up, we'll take you inside the emotional homecoming for the three Americans freed in a historic prisoner swap with Russia.

(COMMERCIAL BREAK)

[18:50:45]

SANCHEZ: The Americans freed in that historic prisoner swap with Russia are in Texas right now, undergoing medical and psychological examinations.

CNN's Alex Marquardt has more.

(BEGIN VIDEOTAPE)

ALEXANDER MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT (voice- over): Paul Whelan, Evan Gershkovich, and Alsu Kurmasheva holding a flag that flies over the White House commemorating detainees and hostages were brought home. There places now on the flag.

The message from U.S. officials to the three American now former prisoners and their families as they arrived overnight in Texas, your ordeal is over, but, quote, the next phase of your journey begins now.

PAUL WHELAN, AMERICAN RELEASED FROM RUSSIA: As we came over England and I looked down, you know, that's when it became real.

Whelan, a former marine who was held in Russia for over 5.5 years, was in good spirits.

Getting off the plane and seeing the president, the vice president, that was nice. It was a good homecoming. So looking forward to seeing my family down here and just recuperating from five years, seven months and five days of just absolute nonsense by the Russian government.

The three are now being evaluated and treated at the Brooke Army Medical Center where a program is offered to help those recover physically and psychologically from being detained or held hostage.

Trevor Reed was held by Russia, released in 2022, and went through this specialized program.

TREVOR REED, AMERICAN PREVIOUSLY HELD IN RUSSIA: When you actually go through that, it's much more difficult than the even you yourself can imagine it to be in that situation. So it does take awhile and San Antonio, there at the army base there very effective at helping you to readjust.

MARQUARDT: Earlier, tearful reunions unfolded on the tarmac at Joint Base Andrews just before midnight. President Biden gave Whelan the American flag pin off his jacket.

Gershkovich walked over to the press area where a group of his "Wall Street Journal" colleagues were waiting, who spent the past 16 months advocating for his release.

EVAN GERSHKOVICH, REPORTER RELEASED FROM RUSSIA: I'm all right. It was a good flight.

REPORTER: What about the show of support?

GERSHKOVICH: It's --

(CROSSTALK)

GERSHKOVICH: It's overwhelming.

MARQUARDT: The stories and emotions from the released prisoners are starting to spill out.

In Germany today, three Russian dissidents released spoke with reporters. Vladimir Kara-Murza, a U.S. resident, said he thought he was going to die in prison, but vowed to return to Russia, promising it will one day be free.

VLADIMIR KARA-MURZA, RELEASED RUSSIAN OPPOSITION LEADER: I know that I'll be back in my home country and it'll be much quicker than you think.

(END VIDEOTAPE)

SANCHEZ: Powerful words there.

Alex Marquardt is here with us live.

Alex, we know that eight Russian prisoners were sent back. Two of them kids. And apparently, the two kids didn't even know they were Russian.

MARQUARDT: Yeah, this is an incredible story. So we watched the eight Russians come off that plane, greeted by Vladimir Putin. There was the assassin Vadim Krasikov. There were some criminals coming from the U.S. and four of them were spies.

There was a spy couple that had been undercover in Slovenia undercover as Argentinians, and they were under such deep cover that their children also thought they were Argentinian, and they only learned that there were actually Russian on that flight to Russia. This is according to the Kremlin.

SANCHEZ: Wow. MARQUARDT: They didn't speak any Russian. They didn't know who Vladimir Putin was. So, as they got off the plane and the mother hugs Vladimir Putin and he gives them flowers, he actually speaks to them in Spanish and welcomes them to Russia saying buenos noches.

SANCHEZ: That is an incredible detail, something out of fiction. Alex Marquardt, thank you so much.

Coming up, we have a live report for you from the country now accusing the United States of trying to overthrow its government as deadly protests are up following a disputed presidential election.

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[18:58:54]

SANCHEZ: Tonight, the United States says it is clear that Venezuelan President Nicolas Maduro lost last week's election, even as he is claiming victory.

CNN journalist Stefano Pozzebon joins us now live from Caracas.

Stefano, what's been the response in Venezuela to the U.S. saying that Maduro lost?

STEFANO POZZEBON, CNN CONTRIBUTOR: Well, Boris, this situation would be laughable where the stakes not so high. We're talking about a democracy in the balance because the electoral authorities here in Venezuela are yet to release any ballot data. Even today, Maduro went to the Supreme Court asking them to investigate on the matter. A few hours before, the electoral authorities reiterated there claim that Maduro won with a 97 percent of the votes counted, he won with 51 percent they say, but they haven't produced any single -- single document.

And that's why, for example, many countries in the region are still urging the authorities to clarify any issue by simply presenting the data that they have. This is something that the opposition has already done. They've presented about 22,000 ballot tallies that they have in their hands on a website. And by doing that, it will be very easy to compare and contrast.

But it's not over yet, unfortunately, and tomorrow, Boris, there will be more protests in Caracas.

SANCHEZ: A story we will continue following. Stefano Pozzebon live from Caracas, thank you so much.

We do have some new CNN reporting on the veepstakes around Kamala Harris. We'll bring that to you when "ERIN BURNETT OUTFRONT" starts in just a moment.

I'm Boris Sanchez in for Wolf Blitzer. Thanks so much for joining us tonight.