News: Inside Biden’s June pivot to the economy

Tuesday, May 31, 2022

Inside Biden’s June pivot to the economy

May 31, 2022

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By Rachael Bade, Ryan Lizza and Eugene Daniels

Presented by

With help from Eli Okun and Garrett Ross

President Joe Biden speaks at the Memorial Amphitheater after laying a wreath at The Tomb of the Unknown Soldier at Arlington National Cemetery.

There's a serious question about whether President Joe Biden can actually convince voters that the economy is doing well. | Andrew Harnik/AP Photo

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DRIVING THE DAY

The Biden White House is rolling out a new monthlong economic campaign today to try to "communicate on our accomplishments to date on the economy," according to a White House official.

President JOE BIDEN kicked off the effort with a WSJ op-ed that posted Monday evening, in which he boasted that his "administration's economic and vaccination plans helped achieve the most robust recovery in modern history." (More on this in a second.)

This afternoon, the president will huddle with Fed Chair JEROME POWELL to discuss plans for addressing inflation. (Bloomberg has a preview here.)

And on Friday, the president will give remarks on the much-anticipated May jobs report, "highlighting the remarkable progress we've made in getting Americans back to work, with unemployment down at a historically fast rate and over eight million jobs created," the White House official said.

We're told that the White House is enlisting Cabinet officials and top Biden allies to carry the message on television all week, including Treasury Secretary JANET YELLEN and deputy WALLY ADEYEMO, Commerce Secretary GINA RAIMONDO, NEC Director BRIAN DEESE, Council of Economic Advisers Chair CECILIA ROUSE, as well as GENE SPERLING, JARED BERNSTEIN, HEATHER BOUSHEY and MITCH LANDRIEU . The administration is planning to have its top surrogates travel and host events throughout the country to carry its message into local media markets.

The purpose of the June pivot appears threefold:

1. To convince skeptical voters that, despite their current misgivings, the economy is actually doing quite well.

2. To calm fears about inflation and reassure both everyday Americans and major economic players that Biden has a plan to address it.

3. To thwart GOP efforts to try to hang inflation like an albatross around Democrats ahead of the midterms — and maybe even go on offense by accusing the GOP of pushing policies that will make the economy worse.

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It also comes at a time when Biden has been frustrated with his political standing. This morning, NBC's Carol Lee, Peter Nicholas, Kristen Welker and Courtney Kube report that Biden has been "pressing aides for a more compelling message and a sharper strategy … and is rattled by his sinking approval ratings and is looking to regain voters' confidence that he can provide the sure-handed leadership he promised during the campaign."

BUT, BUT, BUT … Biden's desire to turn June into an inflection point for his trajectory has some serious challenges. Among them:

1) WILL ANYONE LISTEN? As of Memorial Day, gas prices have surged to a national average of $4.619 a gallon, per Bloomberg's Jack Wittels. Not only is that a new record, it's close to half a buck higher than one month ago. Baby formula shelves are still empty in most parts of the country. And in those grocery store aisles that are full, prices are eye-popping (bacon, for instance, is more expensive than ever — more than $9 in some grocery stores).

Given all of that, there's a serious question about whether the president can actually convince voters that the economy is doing well. But that doesn't mean he isn't going to try.

In his WSJ op-ed, he boasts that:

"[T]he job market is the strongest since the post-World War II era, with 8.3 million new jobs, the fastest decline in unemployment on record, and millions of Americans getting jobs with better pay."

"Since I took office, families have increased their savings and have less debt."

"Business investment is up 20% and manufacturing jobs are growing at their fastest rate in 30 years."

All of that may be true. But until it's reflected in the lived experiences of everyday Americans, it's likely going to be a hard sell to convince them that the economy is in better shape than they think.

2) COULD IT BACKFIRE ON DEMOCRATS? Polling has shown that voters' top concerns this year are the economy and inflation. Telling them that their day-to-day worries are not supported by macroeconomic data — or, as Biden writes, that "the U.S. is in a better economic position than almost any other country" — is risky and could come across as tone-deaf, something frontline Democrats in swing districts have been concerned about.

3) IS IT REALLY A 'PLAN' WHEN THE PRESIDENT POINTS FINGERS? While the president's op-ed purports to lay out a plan for addressing inflation, a close read shows that he actually seems to be pushing the burden off on others, including …

… Powell: "[T]he Federal Reserve has a primary responsibility to control inflation. My predecessor demeaned the Fed, and past presidents have sought to influence its decisions inappropriately during periods of elevated inflation. I won't do this. I have appointed highly qualified people from both parties to lead that institution."

… and Congress. Biden makes clear that the ball is in Congress' court when it comes to passing clean energy tax credits (which he says will reduce the "average family's annual utility bills by $500") as well as legislation to lower the cost of prescription drugs and elder care (which were parts of Build Back Better). "I've done what I can on my own to help working families during this challenging time — and will keep acting to lower costs where I can — but now Congress needs to act too," Biden writes.

Only, Congress has been stuck in a rut on this issue since Christmas. So this plan isn't much of a plan at all. Let's also remember who controls Congress: Biden's own party.

Good Tuesday morning. Thanks for reading Playbook. With Congress out, it's going to be a slow news week, so send us your best tips. What should we be chasing, investigating and writing about? Rachael Bade, Eugene Daniels, Ryan Lizza.

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JUST POSTED — Some inside the White House are calling it "Blaxit": Nearly two dozen Black White House staffers have departed since last year or are heading for the exits soon — some of them citing "a work environment with little support from their superiors and fewer chances for promotion," Daniel Lippman reports this morning. Among the various culprits cited: salary grumbling, lower morale due to remote work and troubles with retention/promotion (with some blaming JEN O'MALLEY DILLON). The trend has raised concerns among diversity advocates. On the other hand, some of the departed say they had a great experience, and the White House says its Black workforce is proportionate to the U.S. population.

BATTLE OF THE NEW YORK SEPTUAGENARIANS — NYT's Nick Fandos has a great deep dive into what's rapidly shaping up to be the hottest and most-watched Democratic primary this season: the faceoff between New York heavyweight Reps. CAROLYN MALONEY and JERRY NADLER, which Fandos writes "may be one of the most bruising political spectacles in living memory, a crosstown clash between two respected party elders in the twilight of their careers."

The progressive-on-progressive fight pits a longtime feminist leader against former President DONALD TRUMP's chief antagonist in the House, both powerful committee chairs who arrived in Washington two months apart in the early 1990s. Some fun nuggets from the story:

—The two briefly tried to make peace: "[Nadler] recalled telling Ms. Maloney in a private conversation on the House floor in Washington a few days earlier that he would win, suggesting she run for a neighboring seat. 'She said basically the opposite, and so it was an impasse,' Mr. Nadler said, 'and we left it at that.'"

— And when that failed, they immediately started working to defeat each other: "Allies of Ms. Maloney whispered doubts about Mr. Nadler's health. (His aides say his health is good.) Mr. Nadler's associates circulated old news articles about Ms. Maloney's obsession with pandas, and suggested that Speaker NANCY PELOSI, who is officially neutral in the race, really preferred him. …

"Mr. Nadler plans to pitch himself to voters as a more principled progressive. He trumpets his role in Mr. Trump's impeachments and frequently points out that he and Ms. Maloney were on opposite sides on the Iraq War (she voted for, he voted against), the Patriot Act (she was for, he was against) and the Iran nuclear deal (he voted for, she against). But any reason will do. 'Voters are clearly going to vote for me because I lost weight,' quipped Mr. Nadler."

— As for their ages — both are in their 70s — they have similar responses to suggestions that they retire: "I've never been more effective," Maloney told Fandos. Nadler's reply? "No. No. No. No. No. No."

Who will prevail? Well, while Maloney has the benefit of having represented 60% of the newly drawn district, "political analysts are warning that the outcome may depend on who casts ballots in a primary in late August, when many residents of the Upper East and West Sides decamp to the Hamptons or the Hudson Valley."

BIDEN'S TUESDAY:

— 9:30 a.m.: The president will receive the President's Daily Brief.

— 11 a.m.: Biden will hold a bilateral meeting with New Zealand PM JACINDA ARDERN in the Oval Office.

— Noon: Biden will have lunch with VP KAMALA HARRIS (only their third of the year, notes NBC's Mike Memoli).

— 1:15 p.m.: Biden will meet with Powell to talk inflation and the economy in the Oval Office.

— 3 p.m.: Biden will meet with the K-pop boy band BTS to discuss "the need to come together in solidarity, Asian inclusion and representation, and addressing anti-Asian hate crimes and discrimination." (It's closed press.)

HARRIS' TUESDAY — The VP will also meet with Ardern at 10:30 a.m.

Press secretary KARINE JEAN-PIERRE will brief at 2:30 p.m.

THE SENATE and THE HOUSE are out for a weeklong Memorial Day recess.

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

PHOTO OF THE DAY

President Joe Biden and first lady Jill Biden take part in a tree planting with Gold Star family members on the South Lawn at the White House.

President Joe Biden and first lady Jill Biden take part in a tree planting at the White House with families of fallen servicemembers on Monday, May 30. | Tasos Katopodis/Getty Images

PLAYBOOK READS

UVALDE FALLOUT

PROSPECTS ON THE HILL — In a legislative branch that can accomplish little these days, Senate Majority Leader CHUCK SCHUMER's decision to try for bipartisan gun legislation "may prove to be a high-stakes bet on representative democracy itself," NYT's Jonathan Weisman writes in a step-back analysis. The group of 10 senators involved is Zooming today to try to nail down a framework, he writes, though CBS' Scott MacFarlane and Kathryn Watson report more uncertainty over whether the call will be just Sens. JOHN CORNYN (R-Texas) and CHRIS MURPHY (D-Conn.) or a larger group.

Murphy says he'd be willing to accept less than he wants to prove to Republicans and the country that this can still work. The intense spotlight, Weisman notes, comes as some liberals call for structural changes to democratic institutions and some conservatives seek to undo elections themselves.

— Rep. SHEILA JACKSON LEE (D-Texas) told WaPo's Ellen Nakashima and Paulina Villegas that the House Judiciary crime subcommittee she chairs will hold hearings about Uvalde and gun violence.

POLITICAL FALLOUT — In Texas, Democrat BETO O'ROURKE is "betting that the tragedy can reset the governor's race in America's largest red state," AP's Will Weissert reports. Prospects: not great for O'Rourke, though Weissert did find one McAllen mom who didn't vote for him in 2018 but is now getting on board.

THE VIOLENCE WE DON'T HEAR ABOUT — Memorial Day weekend saw at least 11 mass shootings across the country, plus another three since Uvalde, per WaPo's Annabelle Timsit. That includes at least 10 deaths and 61 injuries — the kind of gun violence toll embedded into the daily fabric of the U.S.

CONGRESS

2024 WATCH — Burgess Everett sat down with Sen. TOM COTTON last week and profiles the Arkansas Republican — who just about everybody knows is eyeing the presidency. The read is chock full of color — "His favorite food is birthday cake. His favorite phrase to use with reporters is 'no comment.'" — but also highlights the rigid ideological backbone of the 45-year-old and where he positions himself in the GOP. (He said RONALD REAGAN's name 10 times in the interview, and also joined Senate Minority Leader MITCH MCCONNELL in pushing back on Trump's effort to overturn the election on Jan. 6.)

From the story: "Cotton doesn't say 'no' when asked if he's planning to run for president in 2024. And for a party still reeling from the peripatetic ideology of Donald Trump, Cotton could offer a predictable alternative: He builds few bridges to Democrats and isn't afraid of clobbering Republicans, either. He talks regularly with Trump but isn't begging for a third campaign from the former president either: 'That's a decision that he will make, as well as everyone else.'"

JAN. 6 AND ITS AFTERMATH

DOJ INVESTIGATION LATEST — Has the investigation reached the White House? PETER NAVARRO claimed Monday that federal prosecutors served him with a grand jury subpoena last week in the Jan. 6 investigation, asking for "any communications" he'd had with Trump that were related to Jan. 6, Kyle Cheney and Nick Wu report. Navarro is planning to file a lawsuit today trying to prevent its enforcement, which could otherwise compel him to appear for testimony Thursday. The subpoena "would be the most aggressive known step that prosecutors have taken into Trump's West Wing related to Jan. 6," Kyle and Nick note. "Some details of Navarro claims are a bit confusing," adds NYT's Maggie Haberman.

THE WHITE HOUSE

BIDEN'S MEMORIAL DAY — "The hurt can be overwhelming," Biden said in his Memorial Day remarks at Arlington National Cemetery, per ABC's Brittany Gaddy. "But for so many of you, as is with JILL and me, the hurt is wrapped around the knowledge that your loved one was part of something bigger, bigger than any of us." The Bidens also laid a wreath at the Tomb of the Unknown Soldier, offered breakfast to Gold Star families and planted a magnolia tree on the South Lawn.

JAMES BIDEN SPEAKS — WaPo's Matt Viser spoke to JAMES BIDEN, the president's younger brother, in a rare phone interview. "'The notion I am some underworld figure and I am a fixer or the cleaner or I'm this or that — I'm a very concerned family member who tries to protect my family in every way I can, in what is a very ethical way,'" he said in the interview. "James Biden has included HUNTER [BIDEN] in a number of financial deals, his expressions of undying empathy for his nephew alternating with excited business pitches," Viser reported. "Yet a number of those deals have turned sour, as onetime business partners have alleged in court documents that James Biden has said he would bring in business using the Biden name and connections, then failed to deliver — allegations he denies."

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ALL POLITICS

MILESTONE WATCH — Oregon Democratic gubernatorial nominee TINA KOTEK would be the country's first lesbian state executive, NBC's Matt Lavietes reports.

DOWN-BALLOT WATCH — The L.A. Times' Phil Willon and Seema Mehta have an interesting roundup of some of the lower-profile races to watch in California's primary election next week. One nugget that stands out: Incumbent GOP Rep. YOUNG KIM's heavy advertising against a poorly funded Republican challenger "suggests Kim's position is less secure than she might have anticipated."

AMERICA AND THE WORLD

IRAN LATEST — The U.N.'s International Atomic Energy Agency said Monday that Iran now has amassed sufficient levels of uranium for a nuclear weapon, with a stockpile 18 times what was enshrined in the 2015 nuclear deal. More from Agence France-Presse

DON'T MISS DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today.

PLAYBOOKERS

Bridget Brink has made it to Ukraine.

LeVar Burton has made it to 1600 Penn.

OUT AND ABOUT — The National Park Service and Friends of the National World II Memorial hosted a Memorial Day ceremony Monday morning at the National World War II Memorial. SPOTTED: Navy Chaplain Nathan Solomon, Bob Regan, Mike Byer, Jason Sever, Jeffrey Reinbold, retired Lt. Gen. Vincent Stewart, Jack Kammerer, retired Col. Robert Meek Jr., Ken Underwood, Sarah Taylor, Dave Yoho, Callan Francis Safell, Harold Radish and Harry Miller.

WHITE HOUSE DEPARTURE LOUNGE — Saharra Griffin is leaving the White House, where she has been special assistant to the chair of the Council of Economic Advisers. She is heading to the MBA program at Penn's Wharton School in the fall.

ENGAGED — Allan Smith, a politics reporter at NBC News, and Rachel Premack, editorial director at Freightwaves, got engaged this weekend at Battery Park, followed by a celebration with family and friends. Pic

WEEKEND WEDDINGS — Alexandra Logsdon, counsel for the House Veterans' Affairs Dems, and Steve Cimino, digital editor at the American Society of Clinical Oncology, got married Saturday at Fathom Gallery. The two met while Ally was living in D.C. and Steve was living in Los Angeles and dated long distance for a bit before Steve moved to D.C. Pic

— Shani Rosenstock, privacy and security policy lead at Uber and an HSGAC and Deloitte alum, and Ted Schiano, an investment banking analyst at Baird and an EY alum, got married Saturday at Pippin Hill Vineyard in Charlottesville, Va., surrounded by friends and family. The ceremony was officiated by Google's Mark Isakowitz, Shani's lifelong family friend. Pic … Another pic

— Ben Proler, national co-chair of Maverick PAC and a lieutenant in the Navy Reserve, and Shayna Goldblatt, appellate associate at Yetter Coleman, got married in Austin at the Laguna Gloria over Memorial Day weekend. They met through a mutual friend. Pic ... Another pic

WELCOME TO THE WORLD — Erick Sanchez, a comms consultant and Caroline Friou, a special aide to Tulane University President Michael Fitts, on May 24 welcomed their first child, Eliza Patteson Sanchez, who came in at 6 lbs, 8 oz in New Orleans. Pic … Another pic

HAPPY BIRTHDAY: Rep. Larry Bucshon (R-Ind.) ... Al From … former Del. Madeleine Bordallo (D-Guam) … Matt Berman ... Debra DeShong … NPR's Deirdre Walsh … Ali Noorani … Julie Moos of the National Press Club Journalism Institute ... Jennifer Berlin … Grid's Brad Bosserman … Clark Judge ... Elizabeth Dos Santos of Rep. Mario Diaz-Balart's (R-Fla.) office … Kelsey Kats … Amy Pfeiffer of Rep. Andy Kim's (D-N.J.) office … Blake Williams … Michael O'Connor of Williams & Connolly … Marilyn Tavenner … CNN's Sara Sidner … Dan Pino … former Rep. Duncan Hunter (R-Calif.) … Lauren Passalacqua … Charlie Meisch of Crosscut Strategies … Erik Telford … Sara Carter … Newsbusters' P.J. Gladnick … Pamela Hughes … Bill Oglesby

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