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  • 4 US citizens missing after being assaulted and kidnapped in Matamoros, Mexico, FBI says | CNN

    4 US citizens missing after being assaulted and kidnapped in Matamoros, Mexico, FBI says | CNN

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    CNN
     — 

    Four US citizens were assaulted and kidnapped after crossing the border into northeastern Mexico on Friday, according to the FBI, which is working to locate the missing Americans.

    Soon after the US citizens drove into the border city of Matamoros, Mexico, on Friday they were fired upon by unidentified gunmen, a release from the FBI in San Antonio said. The agency did not identify the victims.

    “All four Americans were placed in a vehicle and taken from the scene by armed men,” the release said.

    The US citizens were driving a white minivan with North Carolina license plates, according to the FBI.

    The FBI is seeking the public’s help in locating the Americans and identifying those responsible for the kidnapping. The agency announced a reward of $50,000 for the return of the victims and the arrest of those involved.

    The FBI said it is cooperating with other federal partners and Mexican law enforcement agencies to investigate the kidnapping.

    Anyone with information related to the incident is encouraged to call the FBI San Antonio Division or submit a tip online.

    Matamoros is located in the Mexican state of Tamaulipas, for which the US State Department has issued a “Level 4: Do Not Travel” advisory for US citizens, citing crime and kidnapping.

    CNN has reached out to the FBI for further information on the victims and has also sought comment from the government of Tamaulipas, the Tamaulipas Secretary of Public Security’s office and the Mexican Attorney General’s Office.

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    March 5, 2023
  • Top US general visits Syria for first time as chairman of the joint chiefs, meets US forces | CNN Politics

    Top US general visits Syria for first time as chairman of the joint chiefs, meets US forces | CNN Politics

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    CNN
     — 

    US Chairman of the Joint Chiefs of Staff Gen. Mark Milley visited Syria on Saturday, according to a statement from his office, marking his first visit to the country as the top US general.

    Milley met with US troops in northeast Syria, who are there as part of the campaign to defeat ISIS, and inspected force protection measures, his spokesman Col. Dave Butler said.

    The Syrian Foreign Ministry condemned what it called Miley’s “illegal” visit to the US military base, saying it was a “flagrant violation of the country’s sovereignty and territorial integrity,” according to state news agency SANA.

    Two weeks before Milley’s visit, US and coalition forces at Green Village in Syria came under rocket attack, according to US Central Command. Two rockets landed near the base, CENTCOM said. No US or coalition troops were injured, and there was no damage to the base.

    Just two days earlier, four US troops and one working dog were injured in a helicopter raid against a senior ISIS leader in northeast Syria. The raid killed Hamza al-Homsi, CENTCOM said. The troops were injured in an “explosion on target,” the command said, though it was unclear if it was a suicide vest, grenade or other explosive that injured the troops.

    The US maintains approximately 900 troops in Syria. While in the country, Milley also reviewed the ongoing repatriation efforts from the al-Hol refugee camp, which houses more than 60,000 displaced persons, including 25,000 children.

    The repatriation efforts have been a particular focus of Gen. Erik Kurilla, the commander of US Central Command, who has visited the camp three times since taking over on April 1, 2022. Kurilla’s most recent visit was in mid-November, when he warned that the children in the camp are “prime targets for ISIS radicalization.”

    In February, US forces conducted 15 partnered operations with local forces, including the Kurdish Syrian Defense Forces, as well as two US-only operations, according to CENTCOM. The operations led to the deaths of five ISIS operatives and the detention of 11 others, the command said.

    This story has been updated with additional reaction.

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    March 5, 2023
  • More rate hikes are needed, says Fed’s Mary Daly | CNN Business

    More rate hikes are needed, says Fed’s Mary Daly | CNN Business

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    New York
    CNN
     — 

    Federal Reserve policymakers will need to raise interest rates higher and keep them there longer to tackle the higher prices caused by sticky inflation, San Francisco Fed President Mary Daly said Saturday.

    “It’s clear there is more work to do,” Daly said in a speech at Princeton University. “In order to put this episode of high inflation behind us, further policy tightening, maintained for a longer time, will likely be necessary.”

    Daly acknowledged that high inflation and the aggressive policy action taken by the Fed to bring it down have caused panic on Main Street and Wall Street. “The responses range from fearing these actions will tip the economy into a recession to fearing they won’t be enough to get the job done,” she said.

    That fear has led volatile market swings upon each release of new economic data as uncertainty leads investors to “look for answers in the immediate,” said Daly, “but achieving our mandated goals takes time and a broader view.” The Fed’s current tightening regimen, she said, “was and remains appropriate given the magnitude and persistence of elevated inflation readings.”

    High inflation levels in goods, housing and other sectors along and strong economic data, she said, has led her to question the momentum of disinflation.

    Daly does not currently vote on Fed policy decisions but is a member of the Federal Open Market Committee and participates in policy meetings.

    Her speech followed a week of similar warnings from the Federal Reserve.

    Minneapolis Federal Reserve President Neel Kashkari said last Wednesday that he’s “open to the possibility” of a larger interest rate increase in the Fed’s March policy meeting, “whether it’s 25 or 50 basis points.” (That’s a quarter or half of a percent. A basis point is one hundredth of one percent).

    Atlanta Fed President Raphael Bostic also said Wednesday that he believes the Fed needs to raise its policy rate by half a percentage point at the next meeting.

    On Thursday, Fed Governor Christopher Waller warned that painful interest rates could go higher than expected, citing a slew of recent stronger-than-expected economic data.

    The Federal Reserve has lifted its target range for interest rates from near zero to between 4.5% to 4.75% over the past year in their fight against inflation. In February, they slowed the pace of their hikes to a quarter of a percentage point, down from half a percent in December. Inflation reached a 40-year high in 2022 but began to fall in the final quarter of the year. January’s inflation data showed that the rate of prices increases had inched up once again.

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    March 5, 2023
  • ‘We are in limbo:’ Student loan borrowers still face months of uncertainty about Biden’s forgiveness program | CNN Politics

    ‘We are in limbo:’ Student loan borrowers still face months of uncertainty about Biden’s forgiveness program | CNN Politics

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    Washington
    CNN
     — 

    More than 40 million federal student loan borrowers could be eligible for up to $20,000 in debt forgiveness, but they will likely have to wait several more months before the Supreme Court rules on whether President Joe Biden can implement his proposed relief program.

    The Supreme Court heard oral arguments last week in two cases challenging Biden’s student loan forgiveness program, but justices aren’t expected to issue their decision until late June or early July.

    When the ruling comes will also determine when federal student loan payments, which have been paused due to the pandemic since March 2020, will restart.

    Some borrowers have been anxiously waiting for years to see if Biden would fulfill his campaign pledge to cancel some federal student loan debt. The president finally announced a forgiveness plan last August.

    But after 26 million people applied, the program was blocked by lower courts in November – before any debt could be canceled.

    “In some ways, it feels like we are one step closer now that they’ve heard the oral arguments, but until a decision is made, it still feels like we are in limbo,” said Lindsay Clausen, who has about $68,000 in student loan debt and works as an instructional designer at a university.

    Clausen, 33, filed for relief from Biden’s forgiveness program last fall as soon as the application was open, hoping the forgiveness would help her and her husband save for a new home and expand their family.

    “I felt relief, and then it was like a rug was pulled from underneath me,” Clausen said.

    “Whichever way SCOTUS (Supreme Court of the US) decides to rule, it will at least be nice to have an answer,” she added.

    The Biden administration has estimated that more than 40 million federal student loan borrowers would qualify for some level of debt cancellation, with roughly 20 million who would have their balance forgiven entirely, if the forgiveness program is allowed to move forward.

    But not everyone with a federally held student loan would qualify.

    Individual borrowers who earned less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 annually in those years could see up to $10,000 of their federal student loan debt forgiven. Those with higher incomes would be excluded.

    If a qualifying borrower also received a federal Pell grant while enrolled in college, the individual is eligible for up to $20,000 of debt forgiveness. Pell grants are a key federal aid program that help students from the lowest-income families pay for college, but these borrowers are still more likely to struggle paying off their student loans.

    Student debt cancellation would deliver financial relief to millions of Americans, potentially helping them buy their first homes, start businesses or save for retirement.

    But those who have already paid off their student loans, or chose not to borrow money to go to college to begin with, would get nothing. And the estimated $400 billion cost of canceling some debt would shift to all taxpayers.

    At last week’s hearing, several of the conservative justices questioned whether that tradeoff is fair, while liberal Justice Sonia Sotomayor pushed back, arguing how many borrowers “don’t have friends or families or others who can help them make these payments.”

    The back-and-forth on fairness touches on one of the biggest complaints about the nation’s higher education system: many people feel they need to go to college, and as a result borrow money, to get ahead.

    Angel Enriquez, a 30-year-old meteorologist with about $61,000 in student loan debt, is one of those people.

    Angel Enriquez poses for a portrait at Bizzell Memorial Library at the University of Oklahoma on June 3, 2022.

    His parents, immigrants from Mexico, couldn’t afford to help him pay for college. Enriquez was wait-listed at a state school that had a meteorology program, so he instead enrolled at a more expensive school out of state. He is now pursuing a master’s degree, which he felt he needed to stand out in a competitive industry.

    “When you talk about fairness, it’s a complicated argument,” Enriquez said.

    “But if you talk to someone who comes from poverty, or someone who’s a person of color, they are going to benefit from the forgiveness program the most because they’re the ones that have to jump through extra financial hoops in order to get where everyone else in the educated country is,” he said.

    For some students, college degrees do not deliver the step up in the world they hoped for.

    Even though Blake Goddard worked part-time jobs while in college, he still had to borrow nearly $90,000 for his bachelor’s degree in network communications management from DeVry University. In an effort to land a higher-paying job in the information technology industry, he then earned his master’s degree, borrowing another $44,000.

    Despite those degrees, most of his jobs have been temporary contract positions, and many of his co-workers opted for getting lower-cost IT industry certifications rather than a four-year degree.

    Blake Goddard poses for a portrait in his home on June 10, 2022.

    Meanwhile, the Department of Education has found that DeVry University, a for-profit college, misled at least 1,800 borrowers with false advertising about job placement rates.

    While Goddard, 45, considers himself “one of the lucky ones” who would qualify for $20,000 of debt relief, the cancellation wouldn’t make too much of a dent in his more than $150,000 balance.

    His debt, Goddard said, is “so detrimental” to his American dream, which was to buy a house and have a family.

    “I was stupid enough to fall for it,” Goddard said about taking out student loans.

    “I wish we could make it so nobody else in this country falls into the same trap,” he added.

    Now, he’s committed to helping others avoid borrowing so much money for college and volunteers with an organization that helps students pursue careers in STEM fields.

    One criticism of Biden’s one-time forgiveness program is that it would do nothing to address the cost of college for future students.

    A more permanent solution to the college affordability problem would have to be created by Congress, but lawmakers have failed to pass any sweeping measure. A provision to make community college free was dropped from Biden’s Build Back Better agenda before it came to a vote in the House in 2021.

    The Biden administration is also working on changes to existing federal student loan repayment plans, which don’t need congressional approval, and that aim to make it easier for borrowers to pay for college.

    The Department of Education is currently finalizing a new income-driven repayment plan to lower monthly payments as well as the total amount borrowers pay back over time. In contrast to the one-time student loan cancellation program, the new repayment plan could help both current and future borrowers.

    Additionally, in July, changes will be made to the Public Service Loan Forgiveness program, which allows certain government and nonprofit employees to seek federal student loan forgiveness after making 10 years of qualifying payments. The changes will make it easier for some borrowers to receive debt forgiveness.

    If the Supreme Court ultimately gives the student loan forgiveness program the green light, it’s possible the government will begin issuing some debt cancellations fairly quickly. The administration has said it already approved 16 million applications for relief.

    But several of the conservative justices expressed skepticism last week about whether Biden has the power to implement his student loan forgiveness program.

    Lawyers for the government have remained confident that their plan is legal. They point to a 2003 law passed after the September 11, 2001, terrorist attacks that grants the secretary of education power to make sure people are not worse off in respect to their student loans in the event of a national emergency.

    “I’m confident we’re on the right side of the law,” Biden told CNN a day after the oral arguments when asked if he was confident the administration would prevail in the case. “I’m not confident of the outcome of the decision yet.”

    If the Supreme Court strikes down Biden’s student loan forgiveness program, it could be possible for the administration to make some modifications to the policy and try again – though that process could take months.

    The pandemic pause on payments will remain in effect until either 60 days after the Supreme Court’s decision, or late August – whichever comes first.

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    March 5, 2023
  • Trump featured in song by January 6 prisoners choir | CNN Politics

    Trump featured in song by January 6 prisoners choir | CNN Politics

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    CNN
     — 

    A new single released by a choir of men who are in prison for their participation in the attack on the US Capitol on January 6, 2021, features a recording by former President Donald Trump as the backtrack.

    The song, “Justice for All,” features the incarcerated men, referred to as the “J6 Prison Choir,” singing “The Star-Spangled Banner” from a jail in Washington, DC, mixed with Trump reciting the Pledge of Allegiance.

    Trump recorded his part recently at his Mar-a-Lago home at the request of a group that supports the families of those incarcerated for their actions on January 6, according to two sources familiar with the song’s production.

    Forbes was first to report some of the details about the song, which was released on Apple Music, Spotify and YouTube on Friday – one day before Trump is slated to speak at the Conservative Political Action Conference in the DC area.

    A Trump campaign adviser told CNN that the former president’s involvement in the song’s production wasn’t spearheaded by his presidential campaign.

    “This doesn’t have anything to do with the campaign,” the adviser said.

    Trump has repeatedly expressed sympathy for those incarcerated for their actions on January 6. Before announcing his third presidential campaign in November, Trump said that if he ran for reelection and won, he would “very, very seriously” consider full pardons for rioters who breached the US Capitol during the insurrection.

    As of February 6, the Justice Department said that more than 985 people had been arrested for their alleged participation in the January 6 riot, with approximately 500 defendants pleading guilty.

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    March 5, 2023
  • Fact check: Republicans at CPAC make false claims about Biden, Zelensky, the FBI and children | CNN Politics

    Fact check: Republicans at CPAC make false claims about Biden, Zelensky, the FBI and children | CNN Politics

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    Washington
    CNN
     — 

    The Conservative Political Action Conference is underway in Maryland. And the members of Congress, former government officials and conservative personalities who spoke at the conference on Thursday and Friday made false claims about a variety of topics.

    Rep. Jim Jordan of Ohio uttered two false claims about President Joe Biden. Rep. Marjorie Taylor Greene of Georgia repeated a debunked claim about Ukrainian President Volodymyr Zelensky. Sen. Tommy Tuberville of Alabama used two inaccurate statistics as he lamented the state of the country. Former Trump White House official Steve Bannon repeated his regular lie about the 2020 election having been stolen from Trump, this time baselesly blaming Fox for Trump’s defeat.

    Rep. Kat Cammack of Florida incorrectly said a former Obama administration official had encouraged people to harass Supreme Court Justice Brett Kavanaugh. Rep. Ralph Norman of South Carolina inaccurately claimed Biden had laughed at a grieving mother and inaccurately insinuated that the FBI tipped off the media to its search of former President Donald Trump’s Florida residence. Two other speakers, Rep. Scott Perry of Pennsylvania and former Trump administration official Sebastian Gorka, inflated the number of deaths from fentanyl.

    And that’s not all. Here is a fact check of 13 false claims from the conference, which continues on Saturday.

    Marjorie Taylor Greene said the Republican Party has a duty to protect children. Listing supposed threats to children, she said, “Now whether it’s like Zelensky saying he wants our sons and daughters to go die in Ukraine…” Later in her speech, she said, “I will look at a camera and directly tell Zelensky: you’d better leave your hands off of our sons and daughters, because they’re not dying over there.”

    Facts First: Greene’s claim is false. Ukrainian President Volodymyr Zelensky didn’t say he wants American sons and daughters to fight or die for Ukraine. The false claim, which was debunked by CNN and others earlier in the week, is based on a viral video that clipped Zelensky’s comments out of context.

    19-second video of Zelensky goes viral. See what was edited out

    In reality, Zelensky predicted at a press conference in late February that if Ukraine loses the war against Russia because it does not receive sufficient support from elsewhere, Russia will proceed to enter North Atlantic Treaty Organization member countries in the Baltics (a region made up of Latvia, Lithuania and Estonia) that the US will be obligated to send troops to defend. Under the treaty that governs NATO, an attack on one member is considered an attack on all. Ukraine is not a NATO member, and Zelensky didn’t say Americans should fight there.

    Greene is one of the people who shared the out-of-context video on Twitter this week. You can read a full fact-check, with Zelensky’s complete quote, here.

    Right-wing commentator and former Trump White House chief strategist Steve Bannon criticized right-wing cable channel Fox at length for, he argued, being insufficiently supportive of Trump’s 2024 presidential campaign. Among other things, Bannon claimed that, on the night of the election in November 2020, “Fox News illegitimately called it for the opposition and not Donald J. Trump, of which our nation has never recovered.” Later, he said Trump is running again after “having it stolen, in broad daylight, of which they [Fox] participate in.”

    Facts First: This is nonsense. On election night in 2020, Fox accurately projected that Biden had won the state of Arizona. This projection did not change the outcome of the election; all of the votes are counted regardless of what media outlets have projected, and the counting showed that Biden won Arizona, and the election, fair and square. The 2020 election was not “stolen” from Trump.

    NATIONAL HARBOR, MARYLAND - MARCH 03: Former White House chief strategist for the Trump Administration Steve Bannon speaks during the annual Conservative Political Action Conference (CPAC) at the Gaylord National Resort Hotel And Convention Center on March 03, 2023 in National Harbor, Maryland. The annual conservative conference entered its second day of speakers including congressional members, media personalities and members of former President Donald Trump's administration. President Donald Trump will address the event on Saturday.  (Photo by Anna Moneymaker/Getty Images)

    Bannon has a harsh message for Fox News at CPAC

    Fox, like other major media outlets, did not project that Biden had won the presidency until four days later. Fox personalities went on to repeatedly promote lies that the election was stolen from Trump – even as they privately dismissed and mocked these false claims, according to court filings from a voting technology company that is suing Fox for defamation.

    Rep. Jim Jordan claimed that Biden, “on day one,” made “three key changes” to immigration policy. Jordan said one of those changes was this: “We’re not going to deport anyone who come.” He proceeded to argue that people knowing “we’re not going to get deported” was a reason they decided to migrate to the US under Biden.

    Facts First: Jordan inaccurately described the 100-day deportation pause that Biden attempted to impose immediately after he took office on January 20, 2021. The policy did not say the US wouldn’t deport “anyone who comes.” It explicitly did not apply to anyone who arrived in the country after the end of October 2020, meaning people who arrived under the Biden administration or in the last months of the Trump administration could still be deported.

    Biden did say during the 2020 Democratic primary that “no one, no one will be deported at all” in his first 100 days as president. But Jordan claimed that this was the policy Biden actually implemented on his first day in office; Biden’s actual first-day policy was considerably narrower.

    Biden’s attempted 100-day pause also did not apply to people who engaged in or were suspected of terrorism or espionage, were seen to pose a national security risk, had waived their right to remain in the US, or whom the acting director of Immigration and Customs Enforcement determined the law required to be removed.

    The pause was supposed to be in effect while the Department of Homeland Security conducted a review of immigration enforcement practices, but it was blocked by a federal judge shortly after it was announced.

    Rep. Ralph Norman strongly suggested the FBI had tipped off the media to its August search of Trump’s Mar-a-Lago home and resort in Florida for government documents in the former president’s possession – while concealing its subsequent document searches of properties connected to Biden.

    Norman said: “When I saw the raid at Mar-a-Lago – you know, the cameras, the FBI – and compare that to when they found Biden’s, all of the documents he had, where was the media, where was the FBI? They kept it quiet early on, didn’t let it out. The job of the next president is going to be getting rid of the insiders that are undermining this government, and you’ve gotta clean house.”

    Facts First: Norman’s narrative is false. The FBI did not tip off the media to its search of Mar-a-Lago; CNN reported the next day that the search “happened so quietly, so secretly, that it wasn’t caught on camera at all.” Rather, media outlets belatedly sent cameras to Mar-a-Lago because Peter Schorsch, publisher of the website Florida Politics, learned of the search from non-FBI sources and tweeted about it either after it was over or as it was just concluding, and because Trump himself made a public statement less than 20 minutes later confirming that a search had occurred. Schorsch told CNN on Thursday: “I can, unequivocally, state that the FBI was not one of my two sources which alerted me to the raid.”

    Brian Stelter, then CNN’s chief media correspondent, wrote in his article the day after the search: “By the time local TV news cameras showed up outside the club, there was almost nothing to see. Websites used file photos of the Florida resort since there were no dramatic shots of the search.”

    It’s true that the public didn’t find out until late January about the FBI’s November search of Biden’s former think tank office in Washington, which was conducted with the consent of Biden’s legal team. But the belated presence of journalists at Mar-a-Lago on the day of the Trump search in August is not evidence of a double standard.

    And it’s worth noting that media cameras were on the scene when Biden’s beach home in Delaware was searched by the FBI in February. News outlets had set up a media “pool” to make sure any search there was recorded.

    Sen. Tommy Tuberville, a former college and high school football coach, said, “Going into thousands of kids’ homes and talking to parents every year recruiting, half the kids in this country – I’m not talking about race, I’m just talking about – half the kids in this country have one or no parent. And it’s because of the attack on faith. People are losing faith because, for some reason, because the attack [on] God.”

    Facts First: Tuberville’s claim that half of American children don’t have two parents is incorrect. Official figures from the Census Bureau show that, in 2021, about 70% of US children under the age of 18 lived with two parents and about 65% lived with two married parents.

    About 22% of children lived with only a mother, about 5% with only a father, and about 3% with no parent. But the Census Bureau has explained that even children who are listed as living with only one parent may have a second parent; children are listed as living with only one parent if, for example, one parent is deployed overseas with the military or if their divorced parents share custody of them.

    It is true that the percentage of US children living in households with two parents has been declining for decades. Still, Tuberville’s statistic significantly exaggerated the current situation. His spokesperson told CNN on Thursday that the senator was speaking “anecdotally” from his personal experience meeting with families as a football coach.

    Tuberville claimed that today’s children are being “indoctrinated” in schools by “woke” ideology and critical race theory. He then said, “We don’t teach reading, writing and arithmetic anymore. You know, half the kids in this country, when they graduate – think about this: half the kids in this country, when they graduate, can’t read their diploma.”

    Facts First: This is false. While many Americans do struggle with reading, there is no basis for the claim that “half” of high school graduates can’t read a basic document like a diploma. “Mr. Tuberville does not know what he’s talking about at all,” said Patricia Edwards, a Michigan State University professor of language and literacy who is a past president of the International Literacy Association and the Literacy Research Association. Edwards said there is “no evidence” to support Tuberville’s claim. She also said that people who can’t read at all are highly unlikely to finish high school and that “sometimes politicians embellish information.”

    Tuberville could have accurately said that a significant number of American teenagers and adults have reading trouble, though there is no apparent basis for connecting these struggles with supposed “woke” indoctrination. The organization ProLiteracy pointed CNN to 2017 data that found 23% of Americans age 16 to 65 have “low” literacy skills in English. That’s not “half,” as ProLiteracy pointed out, and it includes people who didn’t graduate from high school and people who are able to read basic text but struggle with more complex literacy tasks.

    The Tuberville spokesperson said the senator was speaking informally after having been briefed on other statistics about Americans’ struggles with reading, like a report that half of adults can’t read a book written at an eighth-grade level.

    Rep. Jim Jordan claimed of Biden: “The president of the United States stood in front of Independence Hall, called half the country fascists.”

    Facts First: This is not true. Biden did not denounce even close to “half the country” in this 2022 speech at Independence Hall in Philadelphia. He made clear that he was speaking about a minority of Republicans.

    In the speech, in which he never used the word “fascists,” Biden warned that “MAGA Republicans” like Trump are “extreme,” “do not respect the Constitution” and “do not believe in the rule of law.” But he also emphasized that “not every Republican, not even the majority of Republicans, are MAGA Republicans.” In other words, he made clear that he was talking about far less than half of Americans.

    Trump earned fewer than 75 million votes in 2020 in a country of more than 258 million adults, so even a hypothetical criticism of every single Trump voter would not amount to criticism of “half the country.”

    Rep. Scott Perry claimed that “average citizens need to just at some point be willing to acknowledge and accept that every single facet of the federal government is weaponized against every single one of us.” Perry said moments later, “The government doesn’t have the right to tell you that you can’t buy a gas stove but that you must buy an electric vehicle.”

    Facts First: This is nonsense. The federal government has not told people that they can’t buy a gas stove or must buy an electric vehicle.

    The Biden administration has tried to encourage and incentivize the adoption of electric vehicles, but it has not tried to forbid the manufacture or purchase of traditional vehicles with internal combustion engines. Biden has set a goal of electric vehicles making up half of all new vehicles sold in the US by 2030.

    There was a January controversy about a Biden appointee to the United States Consumer Product Safety Commission, Richard Trumka Jr., saying that gas stoves pose a “hidden hazard,” as they emit air pollutants, and that “any option is on the table. Products that can’t be made safe can be banned.” But the commission as a whole has not shown support for a ban, and White House press secretary Karine Jean-Pierre said at a January press briefing: “The president does not support banning gas stoves. And the Consumer Product Safety Commission, which is independent, is not banning gas stoves.”

    Rep. Ralph Norman claimed that Biden had just laughed at a mother who lost two sons to fentanyl.

    “I don’t know whether y’all saw, I just saw it this morning: Biden laughing at the mother who had two sons – to die, and he’s basically laughing and saying the fentanyl came from the previous administration. Who cares where it came from? The fact is it’s here,” Norman said.

    Facts First: Norman’s claim is false. Biden did not laugh at the mother who lost her sons to fentanyl, the anti-abortion activist Rebecca Kiessling; in a somber tone, he called her “a poor mother who lost two kids to fentanyl.” Rather, he proceeded to laugh about how Republican Rep. Marjorie Taylor Greene had baselessly blamed the Biden administration for the young men’s deaths even though the tragedy happened in mid-2020, during the Trump administration. You can watch the video of Biden’s remarks here.

    Kiessling has demanded an apology from Biden. She is entitled to her criticism of Biden’s remarks and his chuckle – but the video clearly shows Norman was wrong when he claimed Biden was “laughing at the mother.”

    Rep. Kat Cammack told a story about the first hearing of the new Republican-led House select subcommittee on the supposed “weaponization” of the federal government. Cammack claimed she had asked a Democratic witness at this February hearing about his “incredibly vitriolic” Twitter feed in which, she claimed, he not only repeatedly criticized Supreme Court Justice Brett Kavanaugh but even went “so far as to encourage people to harass this Supreme Court justice.”

    Facts First: This story is false. The witness Cammack questioned in this February exchange at the subcommittee, former Obama administration deputy assistant attorney general Elliot Williams, did not encourage people to harass Kavanaugh. In fact, it’s not even true that Cammack accused him at the February hearing of having encouraged people to harass Kavanaugh. Rather, at the hearing, she merely claimed that Williams had tweeted numerous critical tweets about Kavanaugh but had been “unusually quiet” on Twitter after an alleged assassination attempt against the justice. Clearly, not tweeting about the incident is not the same thing as encouraging harassment.

    Williams, now a CNN legal analyst (he appeared at the subcommittee hearing in his personal capacity), said in a Thursday email that he had “no idea” what Cammack was looking at on his innocuous Twitter feed. He said: “I used to prosecute violent crimes, and clerked for two federal judges. Any suggestion that I’ve ever encouraged harassment of anyone – and particularly any official of the United States – is insulting and not based in reality.”

    Cammack’s spokesperson responded helpfully on Thursday to CNN’s initial queries about the story Cammack told at CPAC, explaining that she was referring to her February exchange with Williams. But the spokesperson stopped responding after CNN asked if Cammack was accurately describing this exchange with Williams and if they had any evidence of Williams actually having encouraged the harassment of Kavanaugh.

    Sen. John Kennedy of Louisiana boasted about the state of the country “when Republicans were in charge.” Among other claims about Trump’s tenure, he said that “in four years,” Republicans “delivered 3.5% unemployment” and “created 8 million new jobs.”

    Facts First: This is inaccurate in two ways. First, the economic numbers for the full “four years” of Trump’s tenure are much worse than these numbers Kennedy cited; Kennedy was actually referring to Trump’s first three years while ignoring the fourth, which was marred by the Covid-19 pandemic. Second, there weren’t “8 million new jobs” created even in Trump’s first three years.

    Kennedy could have correctly said there was a 3.5% unemployment rate after three years of the Trump administration, but not after four. The unemployment rate skyrocketed early in Trump’s fourth year, on account of the pandemic, before coming down again, and it was 6.3% when Trump left office in early 2021. (It fell to 3.4% this January under Biden, better than in any month under Trump.)

    And while the economy added about 6.7 million jobs under Trump before the pandemic-related crash of March and April 2020, that’s not the “8 million jobs” Kennedy claimed – and the economy ended up shedding millions of jobs in Trump’s fourth year. Over the full four years of Trump’s tenure, the economy netted a loss of about 2.7 million jobs.

    Lara Trump, Donald Trump’s daughter-in-law and an adviser to his 2020 campaign, claimed that the last time a CPAC crowd was gathered at this venue in Maryland, in February 2020, “We had the lowest unemployment in American history.” After making other boasts about Donald Trump’s presidency, she said, “But how quickly it all changed.” She added, “Under Joe Biden, America is crumbling.”

    Facts First: Lara Trump’s claim about February 2020 having “the lowest unemployment in American history” is false. The unemployment rate was 3.5% at the time – tied for the lowest since 1969, but not the all-time lowest on record, which was 2.5% in 1953. And while Lara Trump didn’t make an explicit claim about unemployment under Biden, it’s not true that things are worse today on this measure; again, the most recent unemployment rate, 3.4% for January 2023, is better than the rate at the time of CPAC’s 2020 conference or at any other time during Donald Trump’s presidency.

    Multiple speakers at CPAC decried the high number of fentanyl overdose deaths. But some of the speakers inflated that number while attacking Biden’s immigration policy.

    Sebastian Gorka, a former Trump administration official, claimed that “in the last 12 months in America, deaths by fentanyl poisoning totaled 110,000 Americans.” He blamed “Biden’s open border” for these deaths.

    Rep. Scott Perry claimed: “Meanwhile over on this side of the border, where there isn’t anybody, they’re running this fentanyl in; it’s killing 100,000 Americans – over 100,000 Americans – a year.”

    Facts First: It’s not true that there are more than 100,000 fentanyl deaths per year. That is the total number of deaths from all drug overdoses in the US; there were 106,699 such deaths in 2021. But the number of overdose deaths involving synthetic opioids other than methadone, primarily fentanyl, is smaller – 70,601 in 2021.

    Fentanyl-related overdoses are clearly a major problem for the country and by far the biggest single contributor to the broader overdose problem. Nonetheless, claims of “110,000” and “over 100,000” fentanyl deaths per year are significant exaggerations. And while the number of overdose deaths and fentanyl-related deaths increased under Biden in 2021, it was also troubling under Trump in 2020 – 91,799 total overdose deaths and 56,516 for synthetic opioids other than methadone.

    It’s also worth noting that fentanyl is largely smuggled in by US citizens through legal ports of entry rather than by migrants sneaking past other parts of the border. Contrary to frequent Republican claims, the border is not “open”; border officers have seized thousands of pounds of fentanyl under Biden.

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    March 4, 2023
  • Texas GOP censures Republican congressman for ‘lack of fidelity’ to party principles and priorities | CNN Politics

    Texas GOP censures Republican congressman for ‘lack of fidelity’ to party principles and priorities | CNN Politics

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    CNN
     — 

    Republican Rep. Tony Gonzales of Texas was censured Saturday by the state GOP for “for lack of fidelity to Republican principles and priorities,” the party announced.

    The Texas Republican Party took issue with several House votes and stances by the second-term congressman, including his vote for the Respect for Marriage Act, his opposition to a GOP-led border security measure and the fact that he was the lone House Republican to vote against his conference’s rules package earlier this year.

    Gonzales represents Texas’ 23rd Congressional District, which stretches along the US-Mexico border between El Paso and San Antonio. The district is home to Uvalde, where a mass shooting at an elementary school last year killed 19 children and two teachers. After the shooting, Gonzales voted in favor of bipartisan gun-safety legislation – another vote cited in the censure resolution.

    Under the penalties imposed on Gonzales as a result of the censure, the state GOP is not permitted to spend on his behalf during a primary campaign and could fund a primary opponent. The party is also discouraging him from running as a Republican. The penalties would expire after a primary runoff, according to the state GOP.

    In response to the censure, a Gonzales campaign spokesperson told CNN: “Today, like every day, Congressman Tony Gonzales went to work on behalf of the people of TX-23. He talked to veterans, visited with Border Patrol agents, and met constituents in a county he flipped from blue to red. The Republican Party of Texas would be wise to follow his lead and do some actual work.”

    The House GOP campaign arm stressed its support for Gonzales following Saturday’s developments in Texas.

    “Congressman Gonzales is a valued member of the House majority, and we look forward to supporting his re-election,” Delanie Bomar, regional press secretary at the National Republican Congressional Committee, said in an email. Gonzales served as a co-chair of the committee’s Young Guns program for top recruits in the last election cycle.

    At Saturday’s censure vote, 57 members of the State Republican Executive Committee backed the motion, five voted against it and one abstained.

    The censure resolution was originally bought by the Republican Party in Medina County, which is in Gonzales’ district. Fifteen other local party organizations in his district passed concurring resolutions.

    Gonzales was first elected in 2020 to succeed retiring Republican Will Hurd. He easily won election to a second term in his Hispanic-majority district last fall.

    The only other time the Texas GOP has voted to censure a Republican official was in 2018, when Texas House Speaker Joe Straus was censured, according to the state party.

    This story has been updated with additional information and reaction.

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    March 4, 2023
  • Why Biden flipped a 180 on DC’s ability to self-govern | CNN Politics

    Why Biden flipped a 180 on DC’s ability to self-govern | CNN Politics

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    A version of this story appeared in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    President Joe Biden is siding with Republicans and moderate Democrats to slap down local leaders of Washington, DC, as they try to update a 100-year-old criminal code that is showing its age.

    Progressive Democrats are furious about the message this sends on criminal justice reform, and some DC residents feel betrayed by the president who lives in their midst.

    But the headline version of this story, while it neatly fits the Republican political narrative that American cities are crime-infested and rotting, is incomplete.

    Except for Biden’s move betraying DC residents who want to govern themselves. That part is hard to argue with.

    The basic points are these:

    DC’s local government has been trying for years to update its antiquated criminal code, much of which was written before anyone alive today was born.

    For more on just how old and bizarre some of DC’s criminal laws sound today, I recommend reading this story from DCist’s Martin Austermuhle. He mentions laws about archaic stickball games being played in the city’s streets and regulating the movement of livestock through the city.

    The criminal code reform passed by DC’s city council would have ended many mandatory minimum sentences and lowered sentence maximums, even for violent crimes like carjackings.

    The updates have split local leaders on the council, which is dominated by Democrats. The most notable opponent of the new criminal code is DC’s Democratic mayor Muriel Bowser, no ally of national Republicans. In fact, DC’s council overrode her veto of the proposal earlier this year.

    Bowser agrees with most of the measures but has questioned the lowering of some maximum sentences and greatly increasing the number of jury trials.

    A special commission that has been working for years on the new code has argued the new maximum sentences are more in line with sentences that judges actually impose. Bowser has argued that lowering the maximum will lead judges to impose lower sentences too.

    While Democrats want to make DC a state, the Constitution gives Congress control over the federal district that houses the seat of the US government.

    Republicans in Congress, joined by some Democrats, have vowed to use their power over the capital city to throw out the criminal code reform.

    Under the home rule law that gave DC’s local government more autonomy back in the ’70s, Congress can review legislation passed by the city council, and simple majorities can reject anything.

    The House, in a bipartisan but mostly Republican vote, rejected DC’s new criminal code in a vote last month. The Senate could vote next week, and with Democrats like Sen. Joe Manchin of West Virginia on board, is on track to reject the new criminal code.

    Biden could allow the new criminal code to take effect by vetoing the measure running through Congress. It would only take 34 Democrats to sustain the veto. Instead, he’s made it clear he’ll kill the new criminal code reform.

    Here’s how Biden explained his position in a tweet, as noted in the last edition of What Matters, but which is no less hard to follow today:

    I support D.C. Statehood and home-rule – but I don’t support some of the changes D.C. Council put forward over the Mayor’s objections – such as lowering penalties for carjackings.

    If the Senate votes to overturn what D.C. Council did – I’ll sign it.

    If you are confused about how a person can both be for home rule and yet willing to side with his normal political enemies to not let DC rule itself, you’re starting to understand why this move feels to a lot of Democrats like a betrayal.

    “Any effort to overturn the District of Columbia’s democratically enacted laws degrades the right of its nearly 700,000 residents and elected officials to self-govern,” said the district’s attorney general Brian Schwalb in a statement.

    It’s all created a weird situation where Bowser, the mayor, opposes both the council’s new criminal code and Biden’s decision to kill it.

    “Until we are the 51st state, we live with that indignity,” Bowser told the local NPR station WAMU, referencing the “effects of limited home rule.”

    Two words: Lori Lightfoot. She’s the Chicago mayor who was unceremoniously defeated in her reelection campaign when she finished third in voting this week. The main issue in the campaign was crime and controlling it, a turnaround from four years ago when Lightfoot was elected on promises to pursue police reform.

    Crime is turning into a potent issue in local city elections, and Republicans are primed to use it against Democrats in the coming presidential election.

    CNN’s Kyle Feldscher, Manu Raju and Kevin Liptak write that Biden’s move “reflects a rising desire among more moderate Democratic lawmakers to avoid being seen as soft on crime.”

    They note that Biden was actually for home rule before his decision to oppose the reform of DC’s criminal code. The official statement laying out his administration’s policy said Congress should respect DC’s autonomy.

    Even Sen. Tom Carper, the Delaware Democrat who in January reintroduced a bill to grant DC statehood, would not call out Biden for rejecting the decision of DC’s city council.

    Carper appeared on CNN on Friday morning and made clear he would support Biden’s decision to side with Republicans and throw out the new criminal code.

    “What needs to happen here is the Washington, DC, council and the mayor need to work together,” Carper said. “The criminal code hasn’t been updated for 100 years. They didn’t get it entirely right when they went through the exercises over the last year.”

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    March 4, 2023
  • Despite toxic disaster, railroads still want single-person crews | CNN Business

    Despite toxic disaster, railroads still want single-person crews | CNN Business

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    New York
    CNN
     — 

    The nation’s major freight railroads have long desired to have only one crew member, a lone engineer, in the cab of their locomotives. And that desire hasn’t changed despite the derailment of a Norfolk Southern train on February 3 that released toxic chemicals into the air, water and soil of East Palestine, Ohio, that is still being cleaned up.

    But that accident very well may have ended the railroad’s chances of getting that one-person crew goal.

    The rail safety legislation, introduced in Congress Wednesday with bipartisan support, would include a prohibition on single-person crews. There is no such existing law or federal regulation requiring both an engineer and a conductor to be on a train. Instead, it is only labor deals with the Brotherhood of Locomotive Engineers and the transportation division of the Sheet Metal, Air, Rail, Transportation union (SMART-TD), which represents the conductors, that require at least one member of each union in the locomotive’s cab.

    The Association of American Railroads confirmed that its position in favor of one-person crews has not changed. It believes it will be more efficient, and just as safe, to have engineers responding to problems with trains by driving along tracks in trucks rather than riding in the cab of the locomotive.

    “The position on crew size has not changed. Railroads have been clear that they support fact-driven policies that address the cause of this accident and enhance safety,” said an AAR statement. “As we continue to review this bill, it is clear it includes many of the same wish list items AAR and others have clearly said would not prevent a similar accident in the future, such as the… arbitrary crew size rule. Railroads look forward to working with all stakeholders to meaningfully advance real solutions.”

    Union Pacific said the opposition to a two-person crew mandate does not mean the railroads don’t care about safety.

    “No data shows a two-person crew confined to a cab is safer, and train crew size should continue to be determined through collective bargaining,” a statement from UP. “Proposed legislation limits our ability to compete in a business landscape where technology is rapidly changing the transportation industry.”

    CSX also said it believes the decision on crew size should be decided in collective bargaining, not through legislation, but said it is not currently pursuing a change in crew size. Negotiations between the railroads and unions is not due to start again until 2024, and the railroads historically have negotiated deals that apply across the industry. The other two major freight railroads – Norfolk Southern and Burlington Northern Santa Fe – did not responded to questions about the legislation. But the AAR is the trade group that lobbies on their behalf.

    The AAR’s statement did not address the question as to whether that rule is now more likely to pass. But Jeremy Ferguson, president of SMART-TD, said this accident has completely changed the chances of getting the two-person crew requirement written into US law.

    “Absolutely,” he said when asked in an interview with CNN Business if he thinks the provision will now pass. “When an incident like this happens, it brings all the issues to light, how unsafe the rail industry truly is. I didn’t think we had any chance before this. The railroads and AAR do a very good job of lobbying in DC. So generally it’s difficult to get people to vote for something like this rule. But sometimes it takes a disaster to drive home the point. Any time you turn the TV on, there’s still an issue. It’s not going away.”

    The senators, both Democrat and Republican, sponsoring the rail safety bill say they’re hopeful there is now bipartisan support to change the law.

    “Rail lobbyists have fought for years to protect their profits at the expense of communities like East Palestine,” said Sen. Sherrod Brown, the Ohio Democrat. “These commonsense bipartisan safety measures will finally hold big railroad companies accountable, make our railroads and the towns along them safer, and prevent future tragedies, so no community has to suffer like East Palestine again.”

    “Through this legislation, Congress has a real opportunity to ensure that what happened in East Palestine will never happen again,” said Sen. J.D. Vance, the Ohio Republican who is a co-sponsor. “We owe every American the peace of mind that their community is protected from a catastrophe of this kind.”

    If the law is changed due to the East Palestine derailment, it won’t be the first disaster that changed rules and laws governing trains. In 2013, a runaway Canadian freight train carrying tanker cars of oil crashed in Lac-Mégantic, Quebec, causing a massive fire that killed 47 people and destroyed 40 buildings in the town. Canada responded by changing its law to require two person crews on trains carrying hazardous materials.

    But calls to change the law in the United States because of that accident fell on deaf ears.

    The fact that there were three employees on the train that derailed in East Palestine — an engineer, a conductor and a trainee — did not prevent this accident from happening.

    The National Transportation Safety Board’s initial finding on the disaster was that a fire originally started when a rail car carrying plastic pellets was heated by a hot axle.

    After the fire started, the train passed three trackside detectors meant to determine if there is a problem causing overheating. But the first two did not signal a problem, even as the fire raised the temperature more than 100 degrees. The detectors are designed not to alert the crew until there is a 200-degree rise in the temperature detected. Finally the third detector registered a rise in temperature of more than 250 degrees, triggering an alarm in the locomotive’s cab.

    The NTSB said the engineer responded immediately to the alarm by applying the brakes in an attempt to stop the train, but the wheel bearing on the car that was on fire failed before he could bring the train to a halt, causing the derailment.

    Ferguson said that while the crew could not prevent this derailment from happening, there are an uncounted number of times that they detect a problem and prevent a derailment. He said not having the conductor on the train would miss many of those problems and cause many more derailments.

    “When a detector goes off, you stop the train and the conductor can walk back and check if there is an overheating axle and make an immediate decision,” Ferguson said. An engineer is not allowed to get out of the locomotive, even if it’s stopped. Only the conductor can check to see if what the problems is that triggered an alarm.

    But if the conductor is driving around in a truck, rather than riding in the cab of the locomotive, it could be an hour or more before the conductor gets there, and the axle might have cooled down. At that point, the conductor might have to send the train back on its way, according to Ferguson, even though the original problem tripping the heat detector — a faulty axle or bearing — is still a problem that could quickly cause a derailment.

    “So having a guy wandering around in the truck may cause a derailment,” said Ferguson.

    Beyond the problems of this kind, having a second person in the cab can just offer greater attention to detail during long train rides.

    “You’ve got two sets of ears and two set of eyes. It always helps,” Ferguson said.

    And it also helps in case of a medical emergency. In January, a CSX engineer suffered a heart attack while bringing a freight train into Savannah, Georgia, according to the engineers’ union. The conductor was able to recognize he was in distress, give him an aspirin and to call ahead to have an ambulance waiting for him in the rail yard.

    The engineer needed emergency bypass surgery, but survived the heart attack.

    “This happens more often than people realize,” Ferguson said. “It’s not necessarily always a heart attack. But having two people up there always pays dividend for the crew members themselves.”

    CSX confirmed the incident with one of its engineer having a heart attack occurred in January.

    “We commend the heroic actions of all CSX employees who render aid during any medical emergency,” said CSX’s statement.

    The fact that the current labor contracts require two crew members is little comfort to the engineers and conductors unions.

    They point out that under the Railway Labor Act, they can have a contract that is opposed by some or all of the rail unions imposed upon them by Congress, as happened this past December. While this current contract did keep the provision for two-person crews in place, that’s not necessarily going to be the case in all future contracts, even if the unions continue to make the issue a priority.

    Congress generally enacts what is recommended by a panel appointed by the president to propose a deal that hopefully both labor and management can accept. But it might have one or two provisions which are deal breakers for the unions, such as allowing single-person crews.

    “Given the wrong president, we could lose this in a hurry,” said Ferguson.

    The Federal Railroad Administration is also considering a rule that would require two-person crews. But Ferguson said getting the requirement written into law would be better than a simple regulation. An FRA regulation could be easier to change in a new administration than it would be to get a change in the law.

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    March 4, 2023
  • Why the American far right adopted Brazilian ex-President Jair Bolsonaro | CNN

    Why the American far right adopted Brazilian ex-President Jair Bolsonaro | CNN

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    Sao Paulo
    CNN
     — 

    This Saturday, as American conservatives flock to the Conservative Political Action Conference in Maryland, they’ll get a taste of just how far and wide their own ideas have spread. Former Brazilian President Jair Bolsonaro will speak on the same stage where a few hours later former US leader Donald Trump will deliver the event’s closing remarks — a man the Brazilian leader has intentionally mirrored from the beginning of his presidency.

    Far from his home country, Bolsonaro has found a warm reception in America: on social media, mostly Brazilian fans post videos of meeting Bolsonaro outside his south Florida rental and running into him in parking lots, food courts, and grocery stores, where the former president appears in shorts and sandals, grinning and posing for photos with children.

    Bolsonaro has made a number of appearances in US hotel conference rooms and evangelical churches targeting Brazilian expats, giving speeches that come across as both timid and awkward, as he pauses to wait for interpreters to catch up to him, not always seeming certain of what is being said.

    In early February, he spoke in the auditorium of a Trump hotel just outside Miami, hosted by none other than conservative activist and far-right organizer Charlie Kirk. Kirk, who admitted to not knowing much about Brazil, was nonetheless flanked by the flags of both nations: a gold-fringed, star-spangled banner and Brazil’s unmistakeable bright green flag with a yellow diamond and blue circle in the center. “The fight against socialism and Marxism knows no borders,” Kirk said by way of introduction to an audience of mostly Brazilians who were there to see Bolsonaro – “the myth,” or legend, as they call him.

    In a separate podcast interview, Kirk and Bolsonaro enthusiastically described common ground between the Brazilian and American right. Describing his decision to snub Brazilian President Luiz Inacio Lula da Silva’s swearing in, Bolsonaro said: “I didn’t want to be accused of collaborating with the clumsy way they began their mandate, because we have completely opposing political views: conservative, on the right, and theirs, closer to socialism on the left.”

    “Sounds very similar to what we’re dealing with in the United States,” Kirk responded.

    The commonalities go on. From expanding gun rights and downplaying COVID-19 to opposing abortion and advocating for tougher immigration policies, Bolsonaro and Trump had plenty in common while in office. The two have continued to mirror each other since then; both shunned their successors’ inauguration ceremonies and fled to the embrace of conservative society circles in Florida, where Trump moved his residence and where Bolsonaro has been living for more than two months.

    But there’s another reason for Bolsonaro’s tour of the United States: his continued appearances on US stages serve strategic purposes for far-right movements in both countries.

    For Bolsonaro, participating in US political events shores up his claims that he has not exited politics and will eventually assume again leadership of Brazil’s rightwing opposition, despite his current sojourn abroad.

    For the American right, publicly allying with a foreign figure helps expand their reach and creates the appearance of confirming conspiracy theories that originate in the US. In 2022, it was Hungarian hardline leader Viktor Orban who made headlines at CPAC. This year, it’s Bolsonaro.

    Bolsonaro poses for a selfie during an event at a restaurant at Dezerland amusement park in Orlando, Florida, U.S. January 31, 2023.

    Deputy Director of Rapid Response at Media Matters Madeline Peltz, who researches right wing media and has been tracking the way extreme rightwing figures like Steve Bannon, Tucker Carlson and Alex Jones talk about Brazil, says American and Brazilian activists can see each others’ countries as laboratories in which to test and observe tactics.

    After a bruising midterm election, Peltz adds, Republicans are now wondering whether to continue down the path of being pushed farther to the right or to take a more measured approach, distancing themselves from election denialism and the violent acts of January 6, 2021, conveniently chalking that kind of behavior to the radicals of their party.

    “The Republican Party was sort of testing this thesis about, do we continue down this path of Trumpism, of extreme election denial, and that was being reflected in the right wing media’s commentary on Brazil as well — they were testing that thesis both in the American elections and in the Brazilian elections,” Peltz said.

    The blueprint hasn’t shown the expected results, she said. “Republicans underperformed, to be charitable, and Bolsonaro lost.”

    In this balancing act, Bolsonaro is trying to figure out where he fits in. Though he denounced the invasion of Brasilia on January 8 by his supporters, in the days following the election he welcomed peaceful demonstrations while his party filed petitions for an audit of voting machines, alleging fraud. He fed his followers crumbs of misinformation about election fraud and made vague comments hinting at a potential coup.

    Supporters Soares vpx

    Isa Soares speaks with an arrested Bolsonaro supporter

    When asked if Bolsonaro was not too problematic and messy to be brought into American politics — as a one-term president who infamously defended rape, torture, and a military dictatorship and is currently facing multiple criminal investigations at home — Peltz quipped, “They get their power from problematic and messy.” Shock value and controversy can actually confer clout in the American political universe, she said.

    Prominent American conservatives have long lent support to Bolsonaro. “(Steve) Bannon has long considered himself to sort of be the international boogeyman of the left,” and his “next act” after leaving the White House was to form a sort of global coalition of far right movements, Peltz said. Brazil was one winning example of his political penetration.

    Bolsonaro brought in Bannon to advise his first presidential campaign back in 2018 – and Bannon in turn began mentioning the South American leader more and more to his American audience, posing for photos with Bolsonaro’s children on US visits, and voicing his support for the president on his social media whenever he was under fire.

    He is not the only one. In the days that followed the Brazilian presidential elections in November, as Bolsonaro and his party filed petitions for tens of thousands of votes to be thrown out, another prominent conservative voice joined in. Fox News anchor Tucker Carlson raised questions about whether the vote was legitimate – despite Brazilian courts rejecting fraud claims and a military investigation finding no evidence of rigged voting machines.

    Rodrigo Nunes, a philosophy professor at University of Essex and author of “From Trance to Vertigo,” a book of essays about Bolsonarismo, said that Bolsonaro’s value to US conservatives comes from two factors.

    First, “he’s a former president of a fairly important country. Geopolitically, he was a fairly important ally to Trump, because he was 100% aligned with Trump.” As a former leader in the global far-right and part of the “ecology,” Bolsonaro’s voice can be amplified in the US whenever his ideas are relevant, Nunes said.

    Second, Bolsonaro frequently mimics and echoes the discourse of the far right in the US, which can be fed back into the US as offering further confirmation of what the far right are saying there, Nunes explained.

    “That’s a lot of how this ecological approach to political organization works. When you’re using the internet, how do you make something real? You spread sufficient sources of it so that it looks like it’s coming from several different places at the same time, and suddenly, this produces an effect of reality, it looks like it’s real, because there’s a lot of people saying it and where there’s smoke, there’s fire.”

    In a way, the cycle is exemplified in the copycat insurrection that took place in Brasilia on January 8. It’s impossible not to see the influence of January 6 in the actions of the rioters there, and yet “the Brazilian Jan 6” was defended by Carlson and Bannon even as the reaction from Bolsonaro and many in his camp was mixed.

    In pictures: Bolsonaro supporters storm Brazilian Congress

    The day after the Brasilia riots, Bolsonaro condemned the acts in a tweet. “Peaceful demonstrations that follow the law are part of democracy. However, depredations and invasions of public buildings as occurred today, as well as those practiced by the left in 2013 and 2017, escape the rule,” he said.

    But in American politics, what Bolsonaro thinks or says matters less than what the invasion of public buildings thousands of miles away means for American voters who believe that their own election was stolen.

    “The way his narrative is built, to a large extent, as a copy or a mirror image of the narrative that they have in the US is very useful in the sense of showing people this is happening in other places, too. This proves the whole idea that there is a global conspiracy, a global left wing conspiracy to keep us, the people who represent the real people, out of power,” Nunes said.

    In another recent speaking event, Bolsonaro took the pulpit of an evangelical church in Boca Raton, Florida, and told a crowd of Brazilians, “My mission is not over yet.”

    In the same breath as he exalted the wonders of Brazil, (“There is nothing like our own land”), he urged his supporters to not be discouraged, and said he was planning to return to Brazil in the coming weeks to lead the opposition against Lula. If that is true, CPAC could be his last appearance in American politics before going home to an uncertain political future.

    To Peltz, it would be the natural conclusion of what she described as Bolsonaro’s “strange, directionless detour to America,” given CPAC’s waning influence in the American political landscape. “CPAC no longer launches the careers of hopefuls looking to make an impact, rather, it’s now simply a box to check off. And without much otherwise on his to-do list, Bolsonaro might as well check it off.”

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    March 3, 2023
  • CFPB: What it does and why its future is in question | CNN Business

    CFPB: What it does and why its future is in question | CNN Business

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    New York
    CNN
     — 

    The US Supreme Court decided this week to hear a case that will consider the constitutionality of funding for the Consumer Financial Protection Bureau and, in doing so, test the constraints of US regulators’ power. The case would be heard in the fall, with a decision likely by summer 2024.

    But what is the CFPB? How does its work affect your wallet? And why is its future potentially at risk?

    The agency was created after the 2008 financial meltdown, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. That law was passed in the wake of the 2007 subprime mortgage crisis and the Great Recession that followed.

    The broad purpose of the CFPB is to protect consumers from financial abuses and to serve as the central agency for consumer financial protection authorities.

    Prior to its creation, as the agency notes on its site, “[c]onsumer financial protection had not been the primary focus of any federal agency, and no agency had effective tools to set the rules for and oversee the whole market.”

    The CFPB has regulatory authority over providers of many types of financial products and services, including credit cards, banking accounts, loan servicing, credit reporting and consumer debt collection.

    It is charged with implementing and enforcing consumer protection laws, making rules and issuing guidance for consumer financial institutions. And it is the place consumers can go to lodge complaints about financial products and services.

    Importantly, Dodd-Frank also gave the agency new authority to determine whether any given consumer financial product or service is unfair, deceptive or abusive and therefore unlawful.

    While there are critics of the agency’s current structure and funding, it has saved consumers money, made it easier for them to seek redress and to get better clarity and more tailored responses from companies when they have a problem with their accounts, loans or credit reports.

    “It has completely changed the consumer financial marketplace. Overall it has had a tremendous impact on making it more fair and transparent,” said Lauren Saunders, associate director of the National Consumer Law Center.

    For instance, the CFPB has taken action against bank overdraft policies. “Arguably, the focus on overdraft practices has led some banks to eliminate or reduce their overdraft fees,” said Christine Hines, legislative director of the National Association of Consumer Advocates.

    And it has gone after institutions for saddling consumers with pointless products, excessive fees and punitive terms.

    Both Hines and Saunders made a special note of CFPB’s actions against Wells Fargo, after the agency found the bank had been engaging in multiple abusive and unlawful consumer practices across several financial products between 2011 and 2022 — from auto loans to mortgage loans to bank accounts.

    Last month, the agency required the bank to pay more than $2 billion to customers who were harmed by such practices, plus a $1.7 billion fine that will go into a relief fund for victims.

    “More than 16 million accounts at Wells Fargo were subject to their illegal practices, including misapplied payments, wrongful foreclosures, and incorrect fees and interest charges,” the agency said in a blog post.

    In the area of mortgages, “CFPB has written rules to implement new protections so that mortgage lenders don’t make loans with tricks and traps that lead people to lose their homes,” Saunders said.

    It also has created other safeguards, including rules on how service providers should communicate with borrowers who want to find alternatives to foreclosure, Hines noted.

    Currently, the agency is in the midst of an effort to curb excessive or “junk” fees on a range of consumer financial products, such as credit card late fees.

    Critics of the CFPB have been trying for years to limit its power and independence, attacking the way the agency is structured and funded. Like federal banking regulators, its funding is not determined by lawmakers in Congress as part of the annual appropriations process. Rather, it gets its money from the Federal Reserve System’s earnings.

    “This nontraditional funding source limits congressional oversight of the agency and is the subject of legal challenges,” according to the Congressional Research Service.

    The latest challenge — arising from a federal appeals court ruling that CFPB’s funding violates the Constitution’s Appropriations Clause and separation of powers — is what the Supreme Court will take up in its October term.

    While it’s impossible to predict how the justices will rule, should they decide to uphold the appeals court ruling, that will put in doubt how the agency will be funded going forward, and whether it can continue to function effectively.

    It’s also unclear whether the agency’s actions and rule-making over the past 11 years would be invalidated, nor what impact it would have on banks and other financial institutions that have set up systems to be in compliance with CFPB rules and safe harbors.

    “The agency would be unable to do anything if the funding is invalidated. And prior rules could be challenged as the agency did not have a legal funding source that it could use to write those rules,” Cowen Washington Research Group analyst Jaret Seiberg said in a note to clients.

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    March 3, 2023
  • East Palestine residents voice frustrations, frequently interrupt train company official at tense town hall | CNN

    East Palestine residents voice frustrations, frequently interrupt train company official at tense town hall | CNN

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    CNN
     — 

    Angry residents repeatedly interrupted a railroad company official at a contentious town hall in East Palestine, Ohio, on Thursday, with questions and concerns regarding cleanup efforts at the site of a toxic train derailment nearly one month ago.

    “We’re going to do the right thing, we’re going to clean up the site,” said Norfolk Southern representative Darrell Wilson as shouts were raised from those in attendance. “We’re going to test until we get all the contamination gone.”

    “No, you’re not!” one voice cried out.

    Norfolk Southern, the operator of the train that derailed on the evening of February 3, has faced continued criticism from residents in the area, some of whom report illnesses they believe stem from the crash.

    After the derailment, the dangerous chemical vinyl chloride was released and burned to prevent a potentially deadly explosion, and other chemicals of concern that were being transported are feared to have leaked into the surrounding ecosystem in Ohio and Pennsylvania – with potentially damaging health consequences. Crews involved in the cleanup have also reported medical symptoms, according to a letter on behalf of workers’ unions.

    During Thursday’s town hall, officials with the Environmental Protection Agency said Norfolk Southern’s plans to remediate the site were under consideration that night, and Mark Durno, Regional Response Coordinator for the EPA, told CNN’s Brenda Goodman that teams were poised to approve it.

    That paved the way for the process to begin on Friday morning. The EPA has ordered the freight rail company to fully clean up the site of the wreck.

    Remediation started Friday a quarter mile from the derailment site on the south track, video from CNN’s Miguel Marquez shows.

    The process will involve removing one side of the tracks, digging out the contaminated soil, conducting sampling, and then replacing the tracks. The same would then be done on the other side of the tracks.

    While work is being done on the south track, trains will continue to run on the north track where there are still tank cars that can’t be removed until they’re inspected, Wilson said.

    “The sooner they pick it up, the sooner they can get it out of town,” EPA Region 5 Administrator Debra Shore said at the town hall. “This is going to be a complicated, big project.”

    Officials are hoping to begin the process on the north side around March 28, with the entire process finishing by the end of April, Wilson said.

    Approximately 2.1 million gallons of liquid waste and approximately 1,400 tons of solid waste have already been removed from the derailment site, Ohio Gov. Mike DeWine’s office announced in a news release Thursday, citing the state’s EPA. The wastewater and solid waste have been transported to sites in Ohio and elsewhere, including Michigan, Indiana and Texas, according to the release.

    “We’re very sorry for what happened. We feel horrible about it,” Wilson said – which spurred an uproar from the crowd.

    Last week, Ohio Lt. Gov. Jon Husted had suggested the company should temporarily or permanently relocate residents who feel unsafe.

    “I think that the railroad should consider buying property of people who may not feel safe or would want to relocate as a result of the spill,” he told CNN on February 23. “This is the railroad’s responsibility, and it’s up to the government officials at the federal, state and local levels to hold them accountable and do right by the citizens of East Palestine.”

    In response to a resident’s question at the town hall meeting, Wilson said there has not been any talk about relocating residents.

    “This will be an evolving conversation that’s going to go on for quite a while,” he said, adding the company will continue to collect data to inform its decisions.

    This week, Norfolk Southern CEO Alan Shaw sold $448,000 worth of the company’s stock and Shaw personally set up a $445,000 scholarship fund for seniors at East Palestine High School that an unspecified number of students will be able to use to attend college or vocational schools.

    Norfolk Southern did not respond to request for comments about the stock sale, and whether Shaw plans to reduce or donate more of his salary in the wake of the accident.

    In addition to the site cleanup, the EPA is requiring Norfolk Southern to test directly for the presence of dioxins – compounds considered to have significant toxicity and can cause disease. The testing will be conducted with oversight by the agency, according to a statement released Thursday.

    The EPA will direct immediate cleanup of the area if dioxins are found at a level that poses any unacceptable risk to human health or the environment, according to the statement. The EPA will also require Norfolk Southern to conduct a background study to compare any dioxin levels around East Palestine to dioxin levels in other areas not impacted by the train derailment.

    The agency noted dioxins may be found in the environment as a result of common processes such as burning wood or coal, and they break down slowly, so the source of dioxins found in an area may be uncertain.

    The effort comes in direct response to concerns the EPA heard from East Palestine residents, the statement said.

    “This action builds on EPA’s bipartisan efforts alongside our local, state, and federal partners to earn the trust of this community and ensure all residents have the reassurances they need to feel safe at home once again,” EPA Administrator Michael Regan said.

    As of February 28, the EPA had collected at least 115 samples in the potentially impacted area, which include samples of air, soils, surface water, and sediments, the statement said.

    To date, EPA’s monitoring for indicator chemicals has suggested a low probability for release of dioxin from this incident, according to the statement.

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    March 3, 2023
  • What you need to know about this earnings season | CNN Business

    What you need to know about this earnings season | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    About 99% of all S&P 500 companies have reported fourth quarter earnings and the results aren’t great.

    Companies listed in the S&P 500 index beat analysts’ earnings estimates by an average of just 1.3% last quarter. For context, that’s way down on the index’s 5-year average of 8.6%, according to FactSet data.

    What’s happening: There have been some steep and disappointing profit misses as corporate America feels the sting of sticky inflation and the Federal Reserve’s interest rate hikes.

    Tech companies fared poorly this season: Apple

    (AAPL)
    recorded a rare earnings miss while Intel

    (INTC)
    and Google-parent company Alphabet also fell short of expectations.

    But it wasn’t all doom-and-gloom. Energy companies brought in yet another quarter of record profits, with Big Oil companies — such as Chevron, ConocoPhillips, Exxon and Shell — notching their most profitable years in history. Elsewhere, Tesla

    (TSLA)
    reported record revenue gains and beat earnings expectations. Big box retailers Target

    (TGT)
    and Walmart

    (WMT)
    also surpassed estimates as US consumers kept on spending.

    Here’s what else traders need to know about the final few months of last year and beyond.

    Corporate profits could drop for the first time since 2020

    S&P 500 companies are on track to report a 4.6% drop in earnings year-over-year, according to FactSet data. That would mark their first earnings decline since the third quarter of 2020, when Covid shut down large swaths of the economy.

    Gloomy forecasts abound

    About 81 S&P 500 companies have issued negative earnings-per-share guidance for the first quarter of 2023, according to FactSet. That’s a lot higher than the 23 companies reporting positive guidance.

    There was no shortage of foreboding forecasts from top execs on earnings calls this season.

    Walmart beat estimates last quarter, but they also lowered expectations for future earnings.

    Home Depot

    (HD)
    CEO Ted Decker said he was concerned that consumers were becoming less resilient to the economy. “We noted some deceleration in certain products and categories, which was more pronounced in the fourth quarter,” he said on an analyst call.

    Lowe’s executives, meanwhile, warned that they were preparing for a “more cautious consumer” this year.

    Investors feel like celebrating

    Wall Street traders appear to be taking this dour earnings season in their stride. The market is “rewarding positive earnings surprises more than average and punishing negative earnings surprises much less than average for the fourth quarter,” reports FactSet.

    Inflation is (still) a big deal

    More than 325 S&P 500 companies have cited the term “inflation” during their earnings calls for the fourth quarter. That’s well above the 10-year average of 157, according to FactSet document searches.

    But the worries over price hikes appear to be waning, at least a little bit. This marks the lowest number of S&P 500 companies using the “I”-word on their calls since the third quarter of 2021. Since last quarter, the number of inflation mentions has fallen by about 20%.

    ▸ ISM Services PMI — a report that measures the strength of the US service sector — is due out at 10 a.m. ET. The data is expected to show a slight slowdown in growth between January and February (54.5 in February vs. 56.5 in January. For context, a reading above 50 means the services economy is expanding).

    That deceleration would be a big deal. It would signal that the economy is beginning to cool and that the Fed’s efforts to fight inflation by raising interest rates are working. If services sector growth accelerates, however, it could signal that more aggressive rate hikes are ahead and send markets lower.

    ▸ Wall Street is anticipating (or dreading, depending on who you ask) next Friday’s unemployment report. The February data is expected to shed some light on a shockingly resilient labor market.

    Another unexpected surge in non-farm payrolls, like the 517,000 new jobs added in January, could indicate more Fed rate hikes are ahead. That could roil markets in this “good news is bad news” environment.

    Analysts expect that the economy added 200,000 new jobs last month, according to Refinitiv data.

    ▸ The Chinese economy surprised investors this week by quickly bouncing back from its zero-Covid shutdowns. China’s first consumer price index, producer price index and trade figures of 2023 are set to be released next week, which will show the full extent of the country’s rebound.

    “These numbers will offer the first official indications of mainland China’s reopening effect following the rebound seen in PMI numbers,” wrote analysts at S&P Global.

    Global manufacturing rose in February for the first time in seven months, according to the latest PMI surveys compiled by S&P Global. That growth was largely spurred on by China’s reopening.

    Shares of Silvergate Capital, a large lender to cryptocurrency firms, plunged nearly 60% — a record drop — on Thursday after the company told the Securities and Exchange Commission that it won’t be able to file its annual report on time and cited concerns about its ability to remain in business.

    The majority of Silvergate’s crypto clients, including Coinbase, Paxos, Galaxy Digital and Crypto.com, quickly cut ties with the bank amid the chaos.

    So what does it all mean?

    My colleague Allison Morrow explains: The California-based lender reported a $1 billion loss for the fourth quarter as investors panicked over the collapse of FTX, the exchange founded by Sam Bankman-Fried that is now at the center of a massive federal fraud investigation.

    FTX’s collapse in November rippled through the digital asset sector, forcing several firms to halt operations and even declare bankruptcy as liquidity dried up and investors fled.

    But unlike FTX, BlockFi, Celsius, Voyager and other crypto companies that folded last year, Silvergate is a traditional, federally insured lender that has positioned itself as a gateway to the crypto sector.

    It’s among the first major instances of crypto’s volatility spilling into the mainstream banking system — a scenario regulators and crypto skeptics have long feared.

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    March 3, 2023
  • Why Biden is only just about to face his first veto | CNN Politics

    Why Biden is only just about to face his first veto | CNN Politics

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    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    Spend some time reading about how the presidential veto has fallen into disuse and you can’t help but think it coincides with an era where the filibuster and other forms of Capitol Hill obstruction have been put on steroids.

    It’s an indication of how the constitutional vision of the US government – with its separation of powers – has contorted to what we have today, where very little can pass out of one branch of government and the executive is taking more and more power.

    The Constitution spells out specific instructions for use of the veto as a means to separate power. The filibuster is a custom that isn’t mentioned in the Constitution, but has complete control over modern Washington and is leaving a vacuum for presidents to fill.

    Still, issuing a veto is a rite of passage for every modern president, and Joe Biden is about to experience his first.

    There are two issues where lawmakers from both chambers are testing Biden.

    The first relates to a Biden administration retirement investment rule, which according to CNN’s report, “allows managers of retirement funds to consider the impact of climate change and other environmental, social and governance factors when picking investments.”

    Normally, Democrats would have used filibuster rules to block action against the rule in the Senate. But since lawmakers are looking to repeal an executive rule and not a law, Republicans were able to vote to repeal it on Wednesday with help from two red-state Democrats, Sens. Joe Manchin of West Virginia and Jon Tester of Montana. Biden is expected to veto the measure, which was passed by the House on Tuesday.

    It would take two-thirds supermajorities in both chambers (usually 67 of 100 senators and 290 of 435 representatives) to override the expected veto.

    As for the second issue testing Biden, there had been talk that the president could veto a bill pushed by congressional Republicans to invalidate the DC city council’s effort to rewrite its criminal law. Critics argue the new law is soft on violent criminals.

    But Biden told Democratic senators on Thursday that he won’t use his veto power in this case and would sign the measure to repeal DC’s new crime law. In a subsequent tweet, he noted, “I support D.C. Statehood and home-rule – but I don’t support some of the changes D.C. Council put forward over the Mayor’s objections – such as lowering penalties for carjackings.”

    Regardless, it took more than two years to get to this point, when a Republican-controlled House is testing Biden and a slim Democratic majority in the Senate is unable to protect him from pulling out his veto pen.

    That it’s taken more than two years for Biden to face his first veto, after Republicans took control of the House in January, is about in line with when former President Donald Trump issued his first veto, more than two years into his presidency.

    The levers of government were completely reversed back then. The Republican president was usually protected by a slim Republican majority in the Senate from legislation passed out of a House controlled by Democrats.

    The trend away from vetoes has carried through several presidents as use of the filibuster has increased.

    Trump threatened to veto lots of things, but he only ended up issuing 10. Just one of those – his veto of a bill to authorize defense spending – was overridden.

    Note: Read this explanation of the difference between a regular veto and a pocket veto. The latter occurs when a president simply declines to sign a bill and Congress goes into recess. But there hasn’t been one of those in more than 22 years.

    Barack Obama issued 12 vetoes as president and also had one overridden. Lopsided votes in the House and Senate enacted a law allowing citizens to sue Saudi Arabia for the 9/11 attacks.

    George W. Bush was more than five years into his presidency before he issued his first veto, but there was a flurry of activity in his final two years, when he, like Obama, ultimately used his veto 12 items.

    Unlike Obama, Bush had four vetoes overridden, although one of those was due to a clerical issue that required him to veto (and be overridden) twice on the same farm bill. He was also overridden by lawmakers in order to avoid a slash in payments to Medicare providers.

    The first veto was issued by the first president after the first census. George Washington, a Southerner, opposed Congress’ plan to reapportion congressional seats to each state by the state’s population, which would have given more seats to Northern states.

    He issued the veto because the Constitution said there shouldn’t be more than one lawmaker per 30,000 people, and the plan approved by Congress included eight states exceeding that ratio. Thomas Jefferson, who encouraged the veto, according to the National Archives, ultimately devised a new plan to apportion seats based on the population as a whole.

    The first master of the veto was Grover Cleveland, who cracked down on Congress’ practice of acting to individually grant pensions to people who had been rejected by the Department of Veterans Affairs.

    Most presidents up to that point had issued either zero or a handful of vetoes. Cleveland, however, issued 414 vetoes during his first term. His most notable veto was to reject crop subsidies requested by Texas. Only two of his hundreds of vetoes were overridden during his first term. In total, across two terms, he issued more than 580 vetoes.

    Andrew Johnson, who ascended to the presidency after Abraham Lincoln’s death, suffered the most veto overrides: 15. It makes sense since Johnson, a Southern Democrat, clashed with the Northern Republicans who controlled Capitol Hill at the time.

    The veto practice has fallen into general disuse for a number of reasons, according to Steven Smith, a political scientist at Washington University in St. Louis, who has pointed out that for starters, Congress simply doesn’t send as many bills to presidents as it used to.

    Rather than congressional committees writing bills, since the mid-’90s, when then-House Speaker Newt Gingrich squared off with then-President Bill Clinton, congressional leaders have taken over much of the process. That means there’s more coordination between the White House and Capitol Hill when the same party is in control of both.

    When there is a split between the White House and Congress, the president’s allies in the Senate usually offer protection.

    “Many of the partisan, controversial measures die in the Senate before they can be sent to the president for signature or veto,” Smith wrote in his newsletter in 2021. Presidents have also assumed more power from Congress, giving Congress less incentive to act.

    “Every president really in the modern era, especially in the last three or four decades, has stretched the use of unilateral action,” Smith told me on the phone, noting as an example that instead of waiting for Congress, Biden has tried to enact student loan debt relief on his own. While these actions are frequently challenged in court, they are rarely completely repealed.

    “And because of the gridlock on Capitol Hill, everyone has to live with that,” he said.

    Congressional obstruction seems counterproductive in this way. Less legislation has meant fewer vetoes, but also more power for presidents.

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    March 3, 2023
  • House Ethics Committee announces investigation into embattled Rep. George Santos | CNN Politics

    House Ethics Committee announces investigation into embattled Rep. George Santos | CNN Politics

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    CNN
     — 

    The House Ethics Committee announced Thursday it is officially moving forward with a probe into embattled Rep. George Santos as the New York Republican faces mounting legal issues and calls to resign for extensively lying about his resume and biography.

    The Ethics Committee said in a news release that it voted to set up an investigative subcommittee with authority to look into a number issues, including whether Santos may have engaged in unlawful activity related to his 2022 congressional campaign.

    According to the release, the investigative panel will have jurisdiction to determine whether Santos “may have engaged in unlawful activity with respect to his 2022 congressional campaign; failed to properly disclose required information on statements filed with the House; violated federal conflict of interest laws in connection with his role in a firm providing fiduciary services; and/or engaged in sexual misconduct towards an individual seeking employment in his congressional office.”

    Santos responded to the announcement in a tweet.

    “The House Committee on Ethics has opened an investigation, and Congressman George Santos is fully cooperating,” his office’s Twitter account wrote. “There will be no further comment made at this time.”

    Santos told CNN in early February that he is “not concerned” about a House ethics probe or about New York constituents calling on him to resign.

    “You’re saying that the freedom of speech of my constituents is a distraction to my work?” Santos said. “Do you think people are a distraction to the work I’m doing here?”

    In a recent interview with Piers Morgan, Santos also suggested the local grassroots campaigns demanding his ouster were not representative of the district. But a poll released on Monday by Siena College found that 66% of New Yorkers wanted him out – including 58% of Republicans.

    “The ‘good’ news for Santos is that even in these hyper partisan times, he’s found a way to get Democrats, Republicans and independents to agree about a political figure,” pollster Steven Greenberg said in the survey’s release. “The bad news for Santos is that the political figure they agree on is him, and they overwhelmingly view him unfavorably.”

    Apart from outlandish lies about his personal life, academic and professional record, Santos has been implicated in a litany of shady business operations, including his work at Harbor City Capital Corp. in 2020 and 2021, a company the SEC called a “classic Ponzi scheme” in an April 2021 complaint against the firm. (Santos was not listed in the complaint.)

    More potentially damaging, though, might be increased scrutiny of his campaign finances. CNN reported late last year that federal prosecutors in New York were looking into issues surrounding his wealth and loans totaling more than $700,000 he made to his successful 2022 campaign. Santos has repeatedly said the cash he put into the campaign was legally obtained. But a complaint from a campaign watchdog group has questioned the source of that financial windfall. Just two years earlier, Santos had reported a salary of $55,000 and no assets.

    Additionally, the campaign’s bookkeeping has also come under a harsh spotlight, especially following the revelation that his former treasure listed dozens of expenses just a penny beneath the legal threshold for keeping receipts.

    That treasurer, Nancy Marks, has since been replaced. But the true identity of her successor remains a mystery.

    On the Hill, Santos will also now have to answer for an accusation by a prospective staffer who claims Santos made an unwanted sexual advance toward him during a private encounter in the congressman’s office. Shortly after he rebuffed Santos, the accuser says, he was denied a job. Santos has denied the claims.

    The individual, Derek Myers, said in a House Ethics complaint that Santos “touched” his groin before allegedly inviting him to his home and said his husband was out of town, according to a copy of the document provided to CNN last month.

    Santos has brushed off repeated calls for his resignation, including from fellow Republican House members and local Republican officials. He has played coy when asked if he plans to seek re-election, though filed required paperwork to keep the option open.

    GOP leaders in Washington have stopped short of demanding he leave, and House Speaker Kevin McCarthy allowed him to be seated to a pair of House committees. Santos, though, chose to withdraw from those assignments as the furor over his lies intensified in late January.

    The Ethics Committee also said in a statement Thursday that it is extending its inquiry into New York Rep. Alexandria Ocasio-Cortez and whether she may have accepted unallowed gifts as a member of Congress. The committee released a report by the Office of Congressional Ethics, which said that Ocasio-Cortez “may have accepted impermissible gifts associated with her attendance at the Met Gala in 2021.”

    Counsel for Ocasio-Cortez said in a statement to the committee that “though no Ethics violation has been found, the Office of Congressional Ethics (‘OCE’) did identify that there were delays in paying vendors for costs associated with the Congresswoman’s attendance at the Met Gala. The Congresswoman finds these delays unacceptable, and she has taken several steps to ensure nothing of this nature will ever happen again.”

    “Even after OCE’s exhaustive review of the Congresswoman’s personal communications, there is no record of the Congresswoman refusing to pay for these expenses,” David Mitrani wrote in the letter. “To the contrary, there are several explicit, documented communications, from prior to OCE’s review, that show the Congresswoman understood that she had to pay for these expenses from her own personal funds – as she ultimately did. We are confident the Ethics Committee will dismiss this matter.”

    This story has been updated with additional developments.

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    March 2, 2023
  • Two men sentenced to probation after bringing guns to 2020 vote count site in Philadelphia | CNN Politics

    Two men sentenced to probation after bringing guns to 2020 vote count site in Philadelphia | CNN Politics

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    CNN
     — 

    Two men were sentenced Wednesday to two years of probation after being convicted of bringing guns to a Philadelphia vote counting center while 2020 presidential votes were being tallied.

    Antonio LaMotta, 63, and Joshua Macias, 44, both of Virginia, were found guilty in October of two counts each of Violations of the Uniform Firearms Act. The two approached the Pennsylvania Convention Center on November 5, 2020, with firearms while election workers inside were counting votes for the 2020 presidential election, according to evidence at trial. LaMotta and Macias were also sentenced to prison time that had been served prior to sentencing.

    Court of Common Pleas Judge Lucretia Clemons emphasized to LaMotta and Macias during the sentencing that while on their probation they are not allowed to possess any guns – even though they live in a different state.

    “That means I do not want to see you on social media with a gun. I don’t want to see you in a car with a gun. There are no guns while you are on my supervision. I do that with every single gun case that comes before me,” Clemons said.

    Macias apologized to the judge, saying, “I will make sure this type of situation will never happen again.”

    LaMotta did not address the court, but his lawyer Lauren Wimmer suggested to the judge that her client was being targeted for his political views – an allegation prosecutors vehemently denied.

    Following their conviction in October 2022, Philadelphia District Attorney Larry Krasner said in a statement that LaMotta and Macias’ actions would serve as a lesson.

    “Let this be a lesson not to illegally bring firearms to Philly’s elections. If you commit a crime while seeking to undermine people’s right to vote, and to have their votes appropriately counted, you will be held accountable,” Krasner said.

    LaMotta has also been charged with four misdemeanor counts for his alleged participation in the January 6, 2021, attack on the US Capitol. He has pleaded not guilty.

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    March 2, 2023
  • ‘Have not heard of him’: George Santos has a new campaign treasurer but questions persist | CNN Politics

    ‘Have not heard of him’: George Santos has a new campaign treasurer but questions persist | CNN Politics

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    CNN
     — 

    More than a week after embattled Rep. George Santos named his new campaign treasurer, questions persist over the identity of the person who has filled that role and the campaign’s filings with federal regulators.

    Andrew Olson, listed as treasurer of Santos’ federal political committees on February 21, does not serve as treasurer for any federal committees beyond those associated with the Republican congressman who represents parts of Nassau County, New York. And election officials in New York say no one with that name is registered as treasurer of any political committee in the state. The address associated with Olson and Santos’ campaign is that of a mixed-use apartment and commercial building in Elmhurst, New York, where the congressman’s sister resided until earlier this year.

    “Do not know him. Have not heard of him,” Nassau County Republican Party spokesman Mike Deery told CNN. County GOP chair Joseph Cairo “is not acquainted (with) him,” Deery added.

    On Capitol Hill on Wednesday, Santos did not answer any questions about his treasurer posed by CNN’s Manu Raju. Questions to Olson through an email address provided on the Federal Election Commission filing have gone unanswered. And Santos’ personal lawyer has not responded to inquiries.

    Santos – who has lied about his biography, family background and school and work history – is the subject of federal and local investigations into his finances.

    This year, questions emerged about who serves as treasurer. On January 25, Santos’ campaign listed a Wisconsin political consultant as replacing the congressman’s longtime treasurer Nancy Marks. But the consultant’s lawyer says the campaign had done so without his authorization, and his client had turned down the job.

    On January 31, Marks informed the FEC that she had resigned. Later that day, Olson’s electronic signature appeared on a Santos filing that detailed the campaign’s activity in the final weeks of 2022 along with a note that said it been “filed based on the limited information provided to the campaign from the previous treasurer Nancy Marks.”

    Marks did not respond to CNN’s request for comment this week. Her assistant said they don’t know who Olson is.

    Confusion long has swirled around Santos’ filings with the FEC, which has sent more than two dozen letters requesting additional information from his campaign since he first ran for Congress in the 2020 election cycle.

    This week, the FEC sent yet another such letter, ordering the campaign to fix the statement of organization that listed Olson as the new treasurer, because the paperwork incorrectly described Santos’ campaign committee as a national Republican Party committee. The campaign has corrected the error.

    But Saurav Ghosh, a former FEC enforcement lawyer who now works with the Campaign Legal Center watchdog group, said the initial report “reflects a complete lack of sophistication and lack of diligence with the details about what they are filing.”

    “It seems like his campaign has never done any of kind of reasonable job of filing accurate and complete statements, which is why the FEC has asked them so many questions and why the public, justifiably, is asking them so many questions,” Ghosh added.

    Election watchdogs say they have been stumped when they have sought to learn more about Olson. “I’ve never seen this before: Having a complete mystery as a treasurer for a sitting member of Congress,” said Jordan Libowitz of Citizens for Responsibility and Ethics in Washington.

    The address listed for Santos’ committee and his treasurer on Queens Boulevard in Elmhurst, New York, is that of an apartment building that has been associated with Santos and his sister Tiffany Devolder Santos.

    The congressman’s sister vacated her apartment in that building in January, court records show, and recently reached an agreement with her former landlord to repay more than $19,000 in back rent.

    Her former residence is located in a six-story residential and commercial mixed-use building on Queens Boulevard in Elmhurst – the same building that Santos has listed as his address on campaign documents. In the most recent FEC filing designating Olson as treasurer, no details are given about an office or apartment number.

    Employees at the three businesses on the second floor – a Department of Labor office, beauty salon and finance firm – said the name Andrew Olson was unfamiliar. CNN was not able to access the floor, but the owner of the beauty salon said there were no other businesses or operating offices on the floor.

    The congressman’s sister and her attorney did not respond to CNN inquiries this week.

    State election records show Tiffany Santos controls a New York-based political action committee, Rise NY PAC, that has described itself on social media as working to boost voter registration and enthusiasm. She was paid nearly $26,000 by the PAC during the 2022 election cycle, according to filings with the New York State Board of Elections.

    State elections records also show that Marks has retained her position as treasurer of Tiffany Santos’ PAC.

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    March 2, 2023
  • US is reviewing Huawei export license policy amid rising congressional scrutiny of China | CNN Business

    US is reviewing Huawei export license policy amid rising congressional scrutiny of China | CNN Business

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    Washington
    CNN
     — 

    The US government is reviewing a policy that permits certain US exports to continue to Huawei, despite an overall push by the Trump and Biden administrations to block the Chinese telecommunications giant from receiving American technology.

    Alan Estevez, a Commerce Department official, told lawmakers Tuesday that the policy is “under assessment” as the agency conducts a “top-to-bottom review of our export control policies related to the [People’s Republic of China].”

    Estevez testified before the House Foreign Affairs Committee, which was holding a hearing to scrutinize China’s impact on US national security.

    In 2019, Huawei was one of a number of Chinese companies placed on the Commerce Department’s Entity List, which prohibits US companies from trading specified items with entities named on the list unless they obtain a license to do so.

    US officials have expressed concerns that Huawei’s 5G wireless networking gear could allow the Chinese government to spy on American communications. Huawei has denied that it poses a security risk, and its founder has said the company would resist any Chinese government effort to obtain its data.

    According to Foreign Affairs Committee chairman Michael McCaul, between January and March of 2022 the Commerce Department approved more than $23 billion in license applications to trade with Chinese-affiliated companies on the Entity List. Confronting Estevez at Tuesday’s hearing, McCaul asked the Commerce Department to square the license approvals with the US government’s wider effort to sideline Huawei and similar companies.

    “A licensing rule of the previous administration that still stands for Huawei allows things below 5G, below cloud-level to go,” Estevez said, “and I will say that all those things are under assessment.”

    Entity List restrictions do not provide for a “blanket embargo” on exports generally, Estevez added, but rather reflect specific rules about particular exports.

    Separately, in 2020 the Commerce Department moved to prevent Huawei’s suppliers from selling the company semiconductor chips made by US-built software and equipment, unless those suppliers also obtained a license.

    Other parts of the US government have also moved against Huawei. The Federal Communications Commission has prohibited US wireless carriers from using federal funding to purchase Huawei networking gear, and last year also banned future approvals of Huawei equipment for sale in the United States, in the first use of the FCC’s equipment authorization authority for a national security purpose.

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    March 2, 2023
  • The US dollar is at a crossroads | CNN Business

    The US dollar is at a crossroads | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Wall Street investors are reaching for their neck braces in preparation for yet another volatile swing in stock markets: A surging US dollar.

    The greenback — which is not just the dominant global currency but also “the key variable affecting global economic conditions,” according to the New York Federal Reserve — reached a 20-year high last year after the Fed turned hawkish with its aggressive rate hikes.

    Since then, inflation seemed to have softened, pushing the dollar down. But in recent weeks, as a slew of economic data has shown the Fed’s inflation battle is far from over, the currency soared by about 4% from its recent lows, and now sits near a seven-week high.

    Investors are stressing about this sudden rebound, since a stronger dollar means American-made products become more expensive for foreign buyers, overseas revenue decreases in value and global trade weakens.

    Multinational companies, naturally, aren’t thrilled about any of this. And around 30% of all S&P 500 companies’ revenue is earned in markets outside the US, said Quincy Krosby, chief global strategist for LPL Financial.

    What’s happening: The US dollar “finds itself at a significant crossroads yet again,” said Krosby. “While the Fed remains steadfastly data dependent, the dollar’s course as well remains focused on inflation and the Fed’s monetary response.”

    “The strong US dollar has been a headwind for international earnings and stock performance (for US investors),” wrote Wells Fargo analysts in a recent note.

    February was a rough month for markets: The Dow ended February down 4.19%, the S&P 500 fell 2.6% and the Nasdaq lost just over 1%.

    What’s next: Investors are clearly focused on the next Fed policy meeting, which is still three weeks away, for signals about the direction of rates. But until then, investors may gain some insight Tuesday when Fed Chairman Jerome Powell speaks before the Senate Banking Committee.

    They’ll also be watching next Friday’s jobs report for any softening in the labor market that could temper the Fed’s hawkish mood.

    Don’t forget the debt ceiling: Another significant threat to the dollar is looming in Congress — the ongoing debt ceiling fight. The United States could start to default on its financial obligations over the summer or in the early fall if lawmakers don’t agree to raise the debt limit — its self-imposed borrowing limit — before then, according to a new analysis by the Bipartisan Policy Center.

    That could potentially lead to a disastrous downgrade to America’s credit rating and could send the dollar spiraling as investors start to sell off their US assets and move their money to safer currencies.

    “It would certainly undermine the role of the dollar as a reserve currency that is used in transactions all over the world. And Americans — many people — would lose their jobs and certainly their borrowing costs would rise,” Treasury Secretary Janet Yellen told CNN in January.

    ▸ A lot has changed in the last twenty years. The gender pay gap hasn’t.

    In 2022, US women on average earned about 82 cents for every dollar a man earned, according to a new Pew Research Center analysis of median hourly earnings of both full- and part-time workers.

    That’s a big leap from the 65 cents that women were earning in 1982. But it has barely moved from the 80 cents they were earning in 2002.

    “Higher education, a shift to higher-paying occupations and more labor market experience have helped women narrow the gender pay gap since 1982,” the Pew analysis noted. “But even as women have continued to outpace men in educational attainment, the pay gap has been stuck in a holding pattern since 2002, ranging from 80 to 85 cents to the dollar.”

    ▸ Initial jobless claims, which measures the number of people who filed for unemployment insurance for the first time last week, are due out at 8:30 a.m. ET on Thursday.

    This will be the last official jobs data investors see before February’s heavily anticipated unemployment report next Friday.

    Economists are expecting 195,000 Americans to have filed for unemployment, which is higher than the seasonally adjusted 192,000 who applied two weeks ago.

    Initial claims have come in lower than expected in recent weeks and remain well below their pre-pandemic levels.

    The white-hot labor market in the US added more than 500,000 jobs in January, blowing analysts’ expectations out of the water and bringing the unemployment rate to its lowest level since May of 1969.

    That’s bad news for the Federal Reserve where policymakers have been attempting to tame inflation by cooling the economy through painful interest rate hikes.

    ▸ It’s a big day for groceries. Kroger (KR), Costco (COST) and Anheuser-Busch (BUD) all report earnings on Thursday.

    Investors will be watching closely for clues about consumer sentiment during an uncertain retail earnings season. On Tuesday, Kohl’s reported that it had a rough holiday season and executives at the company put the blame on inflation. The company said higher prices squeezed sales and forced it to mark down some products to entice shoppers — which hurt its profit margin.

    Those comments echoed those of other big box retailers like Walmart (WMT) and Target (TGT), who have said consumers are feeling the pinch of inflation.

    Still, Target and Walmart’s bottom lines were bolstered by food sales even as consumers pulled back on discretionary purchases.

    The US Senate voted on Wednesday to overturn a Biden administration retirement investment rule that allows managers of retirement funds to consider the impact of climate change and other ESG factors when picking investments.

    As my CNN colleagues Ali Zaslav, Clare Foran and Ted Barrett write: The rule is not mandated – it allows, but does not require, the consideration of environmental, social and governance factors in investment selection.

    Republicans complained that the rule is a “woke” policy that pushes a liberal agenda on Americans and will hurt retirees’ bottom lines.

    “This rule isn’t about saying the left or the right take on a given environmental, social, or governance issue is ‘correct,’” countered Senator Patty Murray (D-WA) on the Senate floor Wednesday. “It’s about acknowledging these factors are reasonable for asset managers to consider.”

    The measure will next go to President Joe Biden’s desk as it was passed by the House on Tuesday. The administration, however, has issued a veto threat. As a result, passage of the resolution could pave the way for Biden to issue the first veto of his presidency.

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    March 2, 2023
  • Senate votes to overturn Biden administration retirement investment rule Republicans decry as ‘woke’ | CNN Politics

    Senate votes to overturn Biden administration retirement investment rule Republicans decry as ‘woke’ | CNN Politics

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    CNN
     — 

    The Senate passed a politically charged resolution on Wednesday to overturn a Biden administration retirement investment rule that allows managers of retirement funds to consider the impact of climate change and other environmental, social and governance factors when picking investments.

    Republicans complain the rule is “woke” policy that pushes a liberal agenda on Americans and will hurt retirees’ bottom lines, while Democrats say it’s not about ideology and will help investors.

    The measure, which would rescind a Department of Labor rule, will next go to President Joe Biden’s desk as it was passed by the House on Tuesday. The administration, however, has issued a veto threat. As a result, passage of the resolution could pave the way for Biden to issue the first veto of his presidency.

    Opponents of the rule could try to override a veto, but at this point it appears unlikely they could get the two-thirds majority needed in each chamber to do so.

    The resolution, authored by GOP Sen. Mike Braun of Indiana, only needed a simple majority to pass. It passed on a vote of 50 to 46 with Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana voting with Republicans.

    Republican lawmakers advanced it under the Congressional Review Act, which allows Congress to roll back regulations from the executive branch without needing to clear the 60-vote threshold in the Senate that is necessary for most legislation.

    Opponents of the rule have argued that it politicizes retirement investments and that the Biden administration is using it as a way to push a liberal agenda on Americans.

    “The Biden Administration wants to let Wall Street use workers’ hard-earned savings to pursue left-wing political initiatives,” Senate GOP leader Mitch McConnell said in remarks on the Senate floor on Tuesday morning.

    Republican Sen. John Barrasso of Wyoming said at a news conference on Tuesday, “What’s happened here is the woke and weaponized bureaucracy at the Department of Labor has come out with new regulations on retirement funds, and they want retirement funds to be invested in things that are consistent with their very liberal, left-wing agenda.”

    Supporters of the rule argue that it is not a mandate – it allows, but does not require, the consideration of environmental, social and governance factors in investment selection.

    Senate Majority Leader Chuck Schumer said on Wednesday that Republicans are “using the same tired attacks we’ve heard for a while now that this is more wokeness. … But Republicans are missing or ignoring an important point: Nothing in the (Labor Department) rule imposes a mandate.”

    “This isn’t about ideological preference, it’s about looking at the biggest picture possible for investments to minimize risk and maximize returns,” he said, noting it’s a narrow rule that is “literally allowing the free market to do its work.”

    The statement of administration policy saying that Biden would veto the measure similarly states, “the 2022 rule is not a mandate – it does not require any fiduciary to make investment decisions based solely on ESG factors. The rule simply makes sure that retirement plan fiduciaries must engage in a risk and return analysis of their investment decisions and recognizes that these factors can be relevant to that analysis.”

    Republicans are also working to advance a measure to rescind a controversial Washington, DC, crime law – which critics argue is soft on violent criminals – with a simple majority vote in the Senate.

    Many Democrats oppose overriding the DC law. They argue local officials should make their own laws free of congressional interference and decry Republicans as hypocrites since they typically promote state and local rights.

    A Senate vote on the DC measure is expected next week.

    This story and headline have been updated with additional developments.

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    March 1, 2023
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