Breaking precedent, White House won’t release formal economic projections this summer that would forecast extent of downturn

White House officials have decided not to release updated economic projections this summer, opting against publishing forecasts that would almost certainly codify an administration assessment that the coronavirus pandemic has led to a severe economic downturn, according to three people with knowledge of the decision.

The White House is supposed to unveil a federal budget proposal every February and then typically provides a “mid-session review” in July or August with updated projections on economic trends such as unemployment, inflation and economic growth.

Budget experts said they were not aware of any previous White House opting against providing forecasts in this “mid-session review” document in any other year since at least the 1970s.

Two White House officials confirmed the decision had been made not to include the economic projections as part of the mid-session release. The officials, who spoke on the condition of anonymity to discuss internal deliberations, said that the novel coronavirus is causing extreme volatility in the U.S. economy, making it difficult to model economic trends.

The document would be slated for publication just a few months before the November elections.

“It gets them off the hook for having to say what the economic outlook looks like,” said Douglas Holtz-Eakin, a former director of the Congressional Budget Office who served as an economic adviser to the late senator John McCain (R-Ariz.).

Both liberal and conservative critics said the White House should publish its economic projections in line with the precedent set by prior administrations, regardless of the uncertainty caused by the pandemic. The White House under President Barack Obama continued to release these numbers during the Great Recession, although they were unflattering.

This year’s White House budget report is expected to include data on federal spending, along with information on enacted legislation, but not an annual federal deficit projection, the White House officials said. The officials said the White House will release the annual deficit for the year by the end of the fiscal year in October.

A senior administration official said in a statement that it would be “foolish” to publish forecasting data when it “may mislead the public.”

“Given the unprecedented state of play in the economy at the moment, the data is also extremely fluid and would produce a less instructive forecast,” said senior administration official, who spoke on condition of anonymity to describe the White House’s decision. “Furthermore, we remain in complete accordance with the law as there is no statutory requirement to release this information, just precedent, which, when compared to our current economic situation, is dismissible.”

The magnitude of the economic impact has grown by the week. The Treasury Department said earlier this month it plans to borrow $3 trillion from April through June to finance spending in response to the pandemic, while the monthly deficit in April soared to $738 billion.

On Thursday, the Labor Department reported that Americans filed another 2.1 million jobless claims last week, bringing the 10-week total to more than 40 million.

The budget review will include a brief summary of economic conditions to date. One official said White House staff are also busy with implementing the $2 trillion Cares Act aid package approved by Congress in March.

The economic projections are jointly produced by a “troika” consisting of the director of OMB, the chair of the White House Council of Economic Advisers, and the treasury secretary.

Since the release of the White House budget in January, the unemployment rate has skyrocketed from about 3.5 percent to close to 15 percent. President Trump has repeatedly expressed confidence in a rapid economic rebound from the virus, but mainstream economists and Wall Street forecasters have predicted unemployment could remain north of 10 percent through 2020 and into 2021.

Budget experts say there is no reason the White House would be unable to release its own economic projections. The Congressional Budget Office, for instance, updated its economic projections in both April and May as the coronavirus rippled through the U.S. economy.

[Washington Post]

Donald Trump signs executive order targeting social media companies

President Donald Trump signed an executive order on Thursday targeting tech companies like Facebook, Twitter, and Google and the pivotal internet law that provides them broad legal immunity over content posted by their users.

“We’re fed up with it,” Trump said in the Oval Office Thursday before signing the order, according to the Los Angeles Times.

The official executive order has not been released, but a draft order circulated earlier this week sought to pare back platform liability protections under Section 230 of the Communications Decency Act. Under Section 230, internet companies have broad immunity from liability for the content their users post on their platforms. The draft order would open the door for the Commerce Department and the Federal Communications Commission to reinterpret the law and allow the Federal Trade Commission to create a tool for users to report bias online.

“That’s a big deal. They have a shield. They can do what they want,” Trump said Thursday. “They’re not going to have that shield.”

Trump announced his plans to sign this executive order after Twitter fact-checked two of his tweets for the first time earlier this week. The tweets made false and misleading claims about mail-in voting and voter fraud, and Twitter labeled them with a link leading users to additional reporting about the issue.

Trump is attacking a Twitter employee over the company’s decision to fact-check him because the employee criticized Trump in past tweets

President Donald Trump slammed a Twitter employee Thursday who was critical of Trump in past tweets, calling the employee a “hater” and tagging his twitter handle.

Trump has reacted strongly this week to Twitter’s decision to add fact-checking labels to some of his tweets for the first time, and has accused Twitter and other tech companies, again and without evidence, of anti-conservative bias.

On Wednesday, Trump allies and advisers started directing their ire at Twitter’s head of site integrity, Yoel Roth, who has tweeted harsh criticism of Trump in the past.

Roth’s old tweets from 2016 and 2017 were resurfaced and shared widely on Wednesday, including a tweet calling Trump a “racist tangerine,” a tweet decrying “ACTUAL NAZIS IN THE WHITE HOUSE,” and a tweet describing Senate Majority Leader Mitch McConnell as “a personality-free bag of farts.”

A Twitter spokesperson told Business Insider Wednesday that Roth is part of the team overseen by VP for trust and safety Del Harvey that recommends whether to label tweets that contain misinformation, but added that the decision to label tweets is ultimately made by “leadership” following recommendations from the trust and safety team.

On Wednesday night, Twitter CEO Jack Dorsey stood by the decision to correct Trump’s false claims about voting.

“Fact check: there is someone ultimately accountable for our actions as a company, and that’s me,” Dorsey posted. “Please leave our employees out of this. We’ll continue to point out incorrect or disputed information about elections globally.”

“Per our Civic Integrity policy (https://help.twitter.com/en/rules-and-policies/election-integrity-policy), the tweets yesterday may mislead people into thinking they don’t need to register to get a ballot (only registered voters receive ballots),” Dorsey continued. “We’re updating the link on @realDonaldTrump’s tweet to make this more clear.”

Trump advisers are presenting Roth’s tweets as evidence of alleged anti-conservative bias across Twitter and other tech companies. Donald Trump Jr. slammed Roth on Twitter after Breitbart reported on his past tweets. On Fox News Wednesday morning, senior adviser Kellyanne Conway called Roth “horrible” and read his Twitter handle out loud on air.

“Somebody in San Francisco go wake him up and tell him he’s about to get a lot more followers,” Conway said on “Fox & Friends” on Wednesday.

The jabs at Roth are part of the Trump world’s broader backlash to Twitter’s decision to add fact-checking labels to Trump’s tweets that claimed without evidence that vote by mail is being used by Democrats to commit voter fraud. The tweets now include a disclaimer reading “get the facts” with a link to independent fact-checkers who debunk Trump’s claim.

This is the first time Twitter has taken action to mediate Trump’s false or misleading statements on the platform. Twitter has been upbraided by Trump critics over the years who say the platform enables Trump to spread falsehoods despite its policies against misinformation.

Trump lashed out at Twitter in response to the labels early Wednesday, threatening to shut down or “strongly regulate” social-media platforms that he claims are unfair to conservatives.

[Business Insider]

Trump tweets baseless conspiracy theory accusing Joe Scarborough of murder

President Trump again baselessly accused MSNBC host Joe Scarborough of murdering his intern in 2001 in a tweet Saturday, calling on his followers to “keep digging” and to “use forensic geniuses” to find out more about a death that occurred at Scarborough’s Florida office when he was a member of Congress.

Why it matters: Trump has had a lengthy feud with Scarborough and his wife Mika Brzezinski, who host “Morning Joe” and are often critical of the president and his administration. Brzezinski demanded last week that Twitter CEO Jack Dorsey stop allowing Trump to “abuse” the platform by spreading conspiracy theories.

The president’s tweet referred to the 2001 death of Lori Klausutis, a 28-year-old aide at Scarborough’s office. 

  • Authorities determined that she died after losing consciousness from an abnormal heart rhythm and collapsed, striking her head, the Washington Post reports.
  • Police ruled that Klausutis’ death was accidental and never suspected foul play.

[Axios]


Trump threatens to move GOP convention over North Carolina’s coronavirus restrictions

President Trump warned Monday that the Republican Party could seek to move its 2020 convention if North Carolina Gov. Roy Cooper (D) cannot guarantee that coronavirus restrictions will be lifted, allowing the full use of Charlotte’s Spectrum Center this summer.

“I love the Great State of North Carolina, so much so that I insisted on having the Republican National Convention in Charlotte at the end of August. Unfortunately, Democrat Governor, @RoyCooperNC is still in Shutdown mood & unable to guarantee that by August we will be allowed full attendance in the Arena,” Trump said in a series of tweets. “In other words, we would be spending millions of dollars building the Arena to a very high standard without even knowing if the Democrat Governor would allow the Republican Party to fully occupy the space.”

“Plans are being made by many thousands of enthusiastic Republicans, and others, to head to beautiful North Carolina in August. They must be immediately given an answer by the Governor as to whether or not the space will be allowed to be fully occupied,” he continued. “If not, we will be reluctantly forced to find, with all of the jobs and economic development it brings, another Republican National Convention site. This is not something I want to do. Thank you, and I LOVE the people of North Carolina!”

Vice President Pence later backed up Trump during an appearance on “Fox & Friends” on Monday morning, warning that the GOP could decide to move the August convention to a different location “that is farther along on reopening and can say with confidence that, that we can gather there.”

The Republican National Committee did not immediately respond to The Hill’s request for comment. Cooper responded in a statement later Monday morning, explaining that discussions with the Republican National Committee (RNC) were ongoing.

Trump has encouraged governors for weeks to begin accelerating their plans to reopen their economies and lift social distancing measures, even as some states have seen their numbers of confirmed coronavirus cases continue to rise.

North Carolina entered phase two of its reopening plan last week, allowing restaurants to open at 50 percent capacity but still prohibiting large gatherings.

The Democratic National Committee has already pushed back its own convention by a month, and the presumptive presidential nominee, former Vice President Joe Biden, has floated the option of the Milwaukee event going digital. 

Trump, however, has rejected suggestions of altering the GOP convention in the face of the pandemic.

[The Hill]

Trump says Sessions wasn’t ‘mentally qualified’ to be attorney general

President Trump said in a new interview that Jeff Sessions wasn’t “mentally qualified” to be attorney general and was a “disaster” while in office. 

The president told Sharyl Attkisson that Sessions “should have never” held the position.

“Jeff Sessions was a disaster as attorney general,” Trump said during the “Full Measure” interview, which aired on Sunday morning. “He’s not mentally qualified to be attorney general. He was the biggest problem.”

Trump’s remarks escalated an ongoing feud between the president and Sessions, a former Republican senator from Alabama who as attorney general recused himself from the FBI’s investigation into Russian influence in the 2016 election. 

On Saturday, the president formally endorsed college football coach Tommy Tuberville, who is challenging Sessions’s bid to return to the Senate, citing the recusal.

Sessions responded on Twitter, saying, “I did my duty & you’re damn fortunate I did.”

“It protected the rule of law & resulted in your exoneration,” he posted. “Your personal feelings don’t dictate who Alabama picks as their senator, the people of Alabama do.”

Sessions and Tuberville will compete in a July 14 runoff after a close Republican primary election in March. The Republicans seek to unseat Sen. Doug Jones (D-Ala.), who took over Sessions’s seat in a 2017 special election.

Trump fired Sessions in November 2018 and told NBC News’s “Meet the Press” last year that Sessions would be his only “do-over” as president.

[The Hill]

Trump rips Columbia as ‘disgraceful institution’ after study showed lives lost due to delayed shutdown

President Trump ripped Columbia University as a “disgraceful institution” in a new interview released Sunday after it released a study last week concluding thousands of lives could have been spared in the U.S. if shutdowns weren’t delayed.

Sharyl Attkisson asked the president about the study, which determined almost 36,000 deaths from COVID-19 through early May could have been avoided if social distancing and lockdowns had started earlier. 

The president called the fact that the university would issue the study “a disgrace” on the show “Full Measure.”

“Columbia is a liberal, disgraceful institution to write that because all the people that they cater to were months after me,” Trump said.

“And I saw that report,” he added. “It’s a disgrace that Columbia University would do it, playing right to their little group of people that tell them what to do.”

Trump cited his January travel ban on foreign nationals from China as evidence of his administration’s early actions, adding that he took “tremendous heat” for the decision at the time. 

Columbia University did not immediately return a request for comment.

The study focused on transmission in metropolitan areas and concluded that social distancing efforts reduced the rates of COVID-19 contraction. The research was conducted with counterfactual experiments, which researchers acknowledged are based on hypothetical assumptions.

The study also found about 54,000 deaths associated with COVID-19 could have been avoided in early May if restrictions began on March 1.

Trump has repeatedly defended his administration’s response to the pandemic, including pointing to his decision in late January to restrict travel from China, while critics have said administration officials downplayed the threat and reacted too slowly.

[The Hill]

Trump administration discussed conducting first U.S. nuclear test in decades

The Trump administration has discussed whether to conduct the first U.S. nuclear test explosion since 1992 in a move that would have far-reaching consequences for relations with other nuclear powers and reverse a decades-long moratorium on such actions, said a senior administration official and two former officials familiar with the deliberations.

The matter came up at a meeting of senior officials representing the top national security agencies May 15, following accusations from administration officials that Russia and China are conducting low-yield nuclear tests — an assertion that has not been substantiated by publicly available evidence and that both countries have denied.

A senior administration official, who like others spoke on the condition of anonymity to describe the sensitive nuclear discussions, said that demonstrating to Moscow and Beijing that the United States could “rapid test” could prove useful from a negotiating standpoint as Washington seeks a trilateral deal to regulate the arsenals of the biggest nuclear powers.

The meeting did not conclude with any agreement to conduct a test, but a senior administration official said the proposal is “very much an ongoing conversation.” Another person familiar with the meeting, however, said a decision was ultimately made to take other measures in response to threats posed by Russia and China and avoid a resumption of testing.

The National Security Council declined to comment.

During the meeting, serious disagreements emerged over the idea, in particular from the National Nuclear Security Administration, according to two people familiar with the discussions. The NNSA, an agency that ensures the safety of the nation’s stockpile of nuclear weapons, didn’t respond to a request for comment.

The United States has not conducted a nuclear test explosion since September 1992, and nuclear nonproliferation advocates warned that doing so now could have destabilizing consequences.

“It would be an invitation for other nuclear-armed countries to follow suit,” said Daryl Kimball, executive director of the Arms Control Association. “It would be the starting gun to an unprecedented nuclear arms race. You would also disrupt the negotiations with North Korean leader Kim Jong Un, who may no longer feel compelled to honor his moratorium on nuclear testing.”

The United States remains the only country to have deployed a nuclear weapon during wartime, but since 1945 at least eight countries have collectively conducted about 2,000 nuclear tests, of which more than 1,000 were carried out by the United States.

The environmental and health-related consequences of nuclear testing moved the process underground, eventually leading to a near-global moratorium on testing in this century with the exception of North Korea. Concerns about the dangers of testing prompted more than 184 nations to sign the Comprehensive Nuclear-Test-Ban Treaty, an agreement that will not enter into force until ratified by eight key states, including the United States.

President Barack Obama supported the ratification of the CTBT in 2009 but never realized his goal. The Trump administration said it would not seek ratification in its 2018 Nuclear Posture Review.

Still, the major nuclear powers abide by its core prohibition on testing. But the United States in recent months has alleged that Russia and China have violated the “zero yield” standard with extremely low-yield or underground tests, not the type of many-kiloton yield tests with mushroom clouds associated with the Cold War. Russia and China deny the allegation.

Since establishing a moratorium on testing in the early 1990s, the United States has ensured that its nuclear weapons are ready to be deployed by conducting what are known as subcritical tests — blasts that do not produce a nuclear chain reaction but can test components of a weapon.

[The Washington Post]


Trump says it’s ‘badge of HONOR’ for US to lead world in Covid-19 cases

President Donald Trump says that it is a “badge of honour” that the the US has more cases of the coronavirus than any other country.

Speaking at a cabinet meeting this afternoon, the president put the high figure down to the volume of Covid-19tests being carried out.

“When we have a lot of cases, I don’t look at that as a bad thing — I look at that in a certain respect as being a good thing because it means our testing is much better. … So I view it as a badge of honour, really,” he said.

Mr Trump added that this was “a great tribute to the testing and all of the work that a lot of professionals have done.”

The US has conducted 11.28 million tests for the coronavirus, according to figures updated on Monday by the Centres for Disease Control and Prevention.

A total of 1.59 million cases of Covid-19 have been confirmed — approximately 14 per cent of those tested.

More than 91,000 American deaths have been officially recorded as directly caused by the virus.

The president brought up the topic of testing in his response to a question about whether he was considering a travel ban on Latin America, specifically Brazil which now has the third highest number of cases in the world after the US and Russia.

Initially responding that the administration was considering a travel ban, Mr Trump continued: “We hope that we’re not going to have a problem. The governor of Florida is doing very, very well testing — in particular Florida, because a big majority come in to Florida. Brazil has gone more or less herd, and they’re having problems.”

“I worry about everything, I don’t want people coming in here and infecting our people,” he continued. “I don’t want people over there sick either.”

[The Independent]


Trump Steps Up Attacks on Mail Vote, Making False Claims About Fraud

President Trump on Wednesday escalated his assault against mail voting, falsely claiming that Michigan and Nevada were engaged in voter fraud and had acted illegally, and threatening to withhold federal funds to those states if they proceed in expanding vote-by-mail efforts.

The president inaccurately accused the two states of sending mail ballots to its residents. In fact, the secretaries of state in Michigan and Nevada sent applications for mail ballots, as election officials have done in other states, including those led by Republicans.

The Twitter posts were the latest in a series of broadsides the president has aimed at a process that has become the primary vehicle for casting ballots in an electoral system transformed by the coronavirus pandemic.

As most states largely abandon in-person voting because of health concerns, Mr. Trump, along with many of his Republican allies, have launched a series of false attacks to demonize mail voting as fraught with fraud and delivering an inherent advantage to Democratic candidates — despite there being scant evidence for either claim.

“Michigan sends absentee ballots to 7.7 million people ahead of Primaries and the General Election,” the president tweeted Wednesday morning. “This was done illegally and without authorization by a rogue Secretary of State. I will ask to hold up funding to Michigan if they want to go down this Voter Fraud path!”

An hour later he made a similar threat against Nevada, saying the state had created “a great Voter Fraud scenario” and adding “If they do, ‘I think’ I can hold up funds to the State.”

Mr. Trump’s outbursts come as the White House and his re-election campaign are confronting polls showing the president trailing his Democratic rival, Joseph R. Biden Jr., both nationally and in key swing states.

The White House did not respond to requests for comment or elaboration.Mr. Trump has often made threats about cutting off funding to states but has not always followed through. He has threatened in the past to withhold federal funds to sanctuary cities. Last month, he said he wanted Democratic states to give him “sanctuary-city adjustments” in exchange for federal financial relief. He has not yet followed through on the threat.

Michigan’s secretary of state, Jocelyn Benson, quickly clarified on Wednesday that the state is not mailing ballots to all Michigan voters. On Wednesday she began mailing ballot applications to all registered voters.

“I was notified about the tweet this morning and it caught me off guard because it of course was inaccurate,” Ms. Benson, a Democrat, said in an interview. “It is nothing different from my Republican colleagues in other states are doing. It boggles my mind, that this, which is completely within my authority, would in any way be seen as controversial.”

Ms. Benson said she has already spent $4.5 million in federal CARES Act funding to mail voters ballot applications, which are also available online. She had previously sent absentee ballot applications to all voters for the state’s local elections on May 5.

Michigan voters who apply for absentee ballots for the August statewide primary for House and Senate races may also opt in to receive ballots for the November general election.

The president’s attack on Nevada is particularly confounding, given that the state’s effort to switch to a nearly-all-mail election was made by Secretary of State Barbara K. Cegavske, a Republican. Democrats have sued Ms. Cegavske to block her effort to close nearly all of the state’s in-person polling places for the June 9 primary and mail ballots to all registered voters.

“If it has not become apparent yet, Donald Trump makes stuff up,” said Marc Elias, the Democratic elections lawyer who is suing Ms. Cegavske to require more in-person polling places to remain open. “So I don’t think he has a particular objection other than someone has told him that he is losing in Michigan and in Nevada so today he decided to tweet about Michigan and Nevada.”

Ms. Cegavske’s office did not respond to requests for comment.

The president is scheduled to visit a Ford Motor plant that is manufacturing ventilators in Ypsilanti, Mich., on Thursday. This is his first trip to the state since January, and comes at a time when his campaign advisers are increasingly concerned about his chances there. Mr. Trump’s tweets a day ahead of the trip were seen as unhelpful to boosting his political standing in a critical state, and his political opponents immediately pounced on it.

Georgia’s Republican secretary of state and municipal officials in Milwaukee have also said they will send vote-by-mail applications to registered voters in hopes of easing stress on in-person voting locations. In Wisconsin, the state’s bipartisan election commission is meeting Wednesday to decide whether to mail ballot application forms to all registered voters and more than 200,000 people who are eligible to vote but not registered.

Some state Republican parties have been actively encouraging their supporters to vote by mail. In Pennsylvania, another state that recently passed a law to move to no-excuse vote by mail, the state Republican Party has set up an online portal that helps voters understand the new law.

Many states, including Michigan and Wisconsin, also allow voters to make online requests to have absentee ballots mailed to them.

The president himself, along with the first lady, Melania Trump, voted by mail in Florida’s presidential primary in March.

Mr. Trump has long falsely asserted that absentee voting and vote by mail is rife with fraud, applying that argument into his constant complaints of “rigged elections” when he or his supported candidates are losing.

He has been casting doubts on mail voting since his first run for the presidency in 2016. During a rally in Colorado — one of the five states in the country that votes completely by mail — Mr. Trump implied without evidence that it was easy to vote twice.

Recently, Mr. Trump has been lashing out at both vote by mail and absentee voting, at first raising his allegations in April in a tweet and later decrying a decision in California to mail ballots to every voter for November as a “scam.” But the president has also been inconsistent on the issue: on the same day that he criticized the decision in California, he encouraged voters to mail in their ballots for a local congressional race.

Election experts noted that the process Mr. Trump criticized was actually a protective measure against voter fraud.

“A ballot application is returned to state officials who ensure that the information on it is accurate and the person applying for a ballot is entitled to get it,” said Richard L. Hasen, a professor at University of California, Irvine, who specializes in election law. “So it’s a safeguard.”

Mr. Hasen said that the broadsides from Mr. Trump follow a pattern of lashing out against expanding access to voting, even as there remains no evidence to support his claims.

“Trump seems to think that anything that makes it easier for people to vote is going to hurt him,” Mr. Hasen said, “and he’s consistently expressed the view that anything that makes it easier to vote leads to voter fraud when there is absolutely no evidence to support that claim.”

Though Mr. Trump did not specify which funds he was threatening to withhold from states during a pandemic, election officials and Democrats in Congress have been clamoring for more money to help hold the November elections safely.

But the money that has already been appropriated through the Help America Vote Act and the CARES Act is already “out the door” and on the way to states, according to election officials; there is no way for Mr. Trump or his administration to hold up those funds.

Mr. Elias, the elections lawyer, said Mr. Trump could seek to withhold other funds but predicted such a move would be invalidated by the courts.

“The president does not have authority to withhold funding to a state based on the idea that people in the state may vote,” he said.

Mr. Trump’s attacks on mail voting have come largely in states with little history of large numbers of people casting absentee ballots, like Wisconsin. But he has not addressed mail voting in states where it has long been popular, such as Florida and Arizona, and often used to great success by Republican campaigns. Nor has Mr. Trump denigrated mail voting in the five states — Colorado, Hawaii, Oregon, Utah and Washington — that conduct elections entirely by mail.

[The New York Times]

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