Full transcript of "Face the Nation" on May 15, 2022

On this "Face the Nation" broadcast moderated by Margaret Brennan:

  • New York Gov. Kathy Hochul
  • Buffalo Mayor Byron Brown
  • Dr. Scott Gottlieb
  • Lloyd Blankfein, senior chairman of Goldman Sachs
  • Mark Esper, former protection secretary

Click on right here to browse full transcripts of "Face the Nation."  


MARGARET BRENNAN: Good morning, and welcome to Face the Nation. I am Margaret Brennan.

We have now loads to get to immediately, however we start with breaking information from Buffalo, New York, the place an 18-year-old male is in police custody following a mass capturing that killed 10 and injured three others.

That bloodbath is being investigated by the Justice Division as a hate crime and an act of -- quote -- "racially motivated violent extremism."

President Biden referred to it as an act perpetrated within the identify of white nationalist ideology, and he has known as for an finish to hate-fueled home terrorism.

CBS Information correspondent Nancy Chen reviews.

(Start VT)

MAN: A shooter, a mass shooter.

NANCY CHEN (voice-over): A frantic scene after a gunman opened fireplace at a Tops grocery store Saturday afternoon beginning within the parking zone. Police say the closely armed suspect shot 4 individuals exterior, killing three, earlier than shifting inside the shop.

GRADY LEWIS (Witness): Once I first noticed him capturing, he shot a lady, he shot a deacon, he shot one other lady, after which he went within the retailer and began capturing once more.

NANCY CHEN: That is when police say he encountered a retired police officer working as a safety guard, who fired a number of photographs that hit the gunman, however did not impression him due to his tactical gear. The suspect then killed the guard.

Officers say the suspect held a gun to his personal neck after encountering police, however ultimately surrendered.

JOHN GARCIA (Erie County, New York, Sheriff): This was pure evil. It was straight-up racially motivated hate crime.

NANCY CHEN: Of the 13 individuals shot, 11 had been black.

The suspect, 18-year-old Payton Gendron, is believed to have posted a hate- stuffed manifesto shortly earlier than the capturing, which he additionally livestreamed on the social media platform Twitch, authorities say.

A legislation enforcement supply instructed CBS Information the suspect allegedly yelled racial slurs throughout the assault.

GOVERNOR KATHY HOCHUL (D-New York): To see that sense of safety shattered by a person, a white supremacist, who has engaged in an act of terrorism.

NANCY CHEN: Gendron is from Conklin, New York, about three-and-a-half- hours from Buffalo. He was arraigned hours after the assault on a first- diploma homicide cost, pleading not responsible.

(Finish VT)

NANCY CHEN: A primary-degree homicide cost carries a sentence of life in jail with out parole if convicted.

The suspect is being held with out bond and is ready to seem in court docket once more on Thursday -- Margaret.

MARGARET BRENNAN: Nancy Chen, thanks.

We need to go now to the governor of New York, Kathy Hochul.

Good morning to you, Governor.

GOVERNOR KATHY HOCHUL: Good morning. I am blissful to be right here, to be on this present, however it's very a tragic day for all of us right here in Western New York. It is my hometown of Buffalo.

MARGARET BRENNAN: Nicely, our condolences to you and to that group.

Are you involved about additional violence in your state?

GOVERNOR KATHY HOCHUL: Nicely, we're taking proactive measure to ensure that we're monitoring all social media platforms, as a result of this -- this info was on the market.

This was on a manifesto that was written some time again. And so we're very involved about what different info is perpetrated on the market on social media platforms and are on the market being disseminated globally.

So, this info from yesterday's assault is already on the market. It was livestreamed. The intent of this particular person was telegraphed prematurely. So I am calling on social media platforms to be ensuring that they are doing a greater job monitoring the hate speech that is on the market, particularly when it is directed towards populations and comes below the guise of white supremacy terrorism, which is strictly what occurred right here in Buffalo.

MARGARET BRENNAN: I need to come again to that in a second, however I need to ask concerning the weapon that this shooter used.

You have stated it was legally obtained. You have additionally stated that the shooter had been at one level below the surveillance of medical authorities due to previous feedback he had made about finishing up a capturing. How was he allowed to purchase and to carry on to that weapon?

GOVERNOR KATHY HOCHUL: That's precisely what's being investigated now.

I perceive that he wrote one thing when he was in highschool and that that was being investigated. So we will resolve that.

MARGARET BRENNAN: So, it is potential that he shouldn't have been offered that weapon? Is that an oversight within the state?

GOVERNOR KATHY HOCHUL: Nicely, no, we do not know that. We do not know that proper now. However I'll resolve and discover out proper now.

This is able to have occurred a short time again. He is 19 years previous. Apparently, he was investigating when he was a highschool scholar, dropped at the eye of the authorities. He had a medical analysis based mostly on one thing he had written in class. And so we will discover out what occurred within the aftermath.

MARGARET BRENNAN: I perceive.

I do know you simply talked about going surfing and taking what's on the market within the social media house significantly. You have known as it a feeding frenzy for white supremacy. How do you truly regulate this with out impeding on free speech?

You might have plenty of media and social media firms with massive places of work in your state. Particularly, what are you asking them to do?

GOVERNOR KATHY HOCHUL: No, we would like them to remain in our state.

We additionally need them to be extra vigilant and use the sources they've to rent extra individuals, change their algorithms, be capable of establish the second that this hate speech seems, and let there be a dedication by legislation enforcement rapidly.

Regulation enforcement additionally screens this as properly. I imply, we've the FBI monitoring. We even have state police. So we want a multifaceted method. We want vigilance, not simply legislation enforcement, but additionally from the platforms which are permitting this to unfold.

MARGARET BRENNAN: Sure.

GOVERNOR KATHY HOCHUL: They've a duty as properly.

MARGARET BRENNAN: The Justice Division has known as this an act of racially motivated violent extremism. You used a sharper phrase. You stated white supremacist terrorism.

I do know your state classifies assault based mostly on race or faith as a terror assault. There is no federal statute that does that. Ought to there be?

GOVERNOR KATHY HOCHUL: Sure.

Federal terrorism -- there are home terrorism legal guidelines on the books. This may be prosecuted below state or federal legal guidelines proper now. It began with our district lawyer on the state degree. So this particular person is just not going to see the sunshine of day once more, whether or not it is below federal prosecution or state below our home terrorism legal guidelines or simply homicide one.

This individual murdered ten harmless victims in our group simply yesterday.

MARGARET BRENNAN: Governor, good luck to you. Thanks to your time this morning.

GOVERNOR KATHY HOCHUL: Thanks very a lot.

MARGARET BRENNAN: We flip now to the mayor of Buffalo, Byron Brown.

Good morning to you, Mr. Mayor. And our ideas, our condolences are with you and your group.

How are you all dealing with this?

BYRON BROWN (Mayor of Buffalo New York): Thanks, Margaret.

It's clearly very painful, very uncooked, very contemporary. We're wrapping our arms across the households of these whose lives had been misplaced. We're standing sturdy as a group and dealing to not let this horrible act of hate detract from us being a loving, heat, welcoming group.

MARGARET BRENNAN: The shooter was allegedly motivated by white supremacist ideology.

I do know that you're the primary African-American mayor of Buffalo, which, as a metropolis, has been known as very segregated, if not one of the crucial within the nation.

How do you all unite within the wake of one thing like this?

MAYOR BYRON BROWN: We're a midsize American metropolis of over 278,000 individuals, and this a part of town, 80 p.c African-American, however numerous, with individuals of many various backgrounds residing on this group.

We're definitely saddened that somebody drove from tons of of miles away, somebody not from this group, that didn't know this group, that got here right here to take as many black lives as potential, who did this in a willful, premeditated trend, planning this.

However we're a powerful group. And we are going to hold shifting ahead.

MARGARET BRENNAN: Is there an ongoing risk? Are your residents protected immediately?

MAYOR BYRON BROWN: I feel the query that we have to ask ourselves, are any residents protected on this nation wherever?

We have now to concentrate on wise gun management. That stated, in spite of everything of those mass shootings which have taken place on this nation for various causes, yr in and yr out, month in and month out, week in and week out, let Buffalo, New York, be the final place that this type of mass capturing occurs.

MARGARET BRENNAN: Mr. Mayor, good luck to you and thanks to your time immediately.

MAYOR BYRON BROWN: Thanks very a lot, Margaret.

MARGARET BRENNAN: We flip now to the economic system.

And we realized this week that the price of issues like meals and power rose in comparison with final month.

Secretary of Transportation Pete Buttigieg joins us now.

Good morning to you, Mr. Secretary.

PETE BUTTIGIEG (U.S. Transportation Secretary): Good morning. Good to be with you.

MARGARET BRENNAN: As a consultant of the administration, I do need to ask you a little bit bit about this response to the occasions in Buffalo.

You had been as soon as a mayor. Do you assume that there needs to be a federal legislation criminalizing home terrorism? The president used that phrase, however that is probably not on the books.

SECRETARY PETE BUTTIGIEG: Nicely, I'll let the president communicate to the authorized outlook with regard to the definition of terrorism.

However whether or not it is known as that legally or not, this was terrorism, this was hate. And this may be a very good day for each politician on this nation left, proper and middle, each media determine on this nation, left, proper and middle, to return out and unequivocally condemn white nationalism, so-called Alternative Idea, and some other hateful ideology that would have contributed to one thing like this, earlier than it occurs once more.

MARGARET BRENNAN: However ought to there be a federal statute that elevates issues when these phrases you simply threw on the market -- ought to there be an affiliation immediately with terrorism?

SECRETARY PETE BUTTIGIEG: Once more, we do not know, clearly, all the particulars that match the authorized definitions.

What we all know is that any person traveled a protracted distance with an AR-15 to hunt human beings, to hunt black individuals. And we have to ensure that we root out that form of hate and, by the way in which, that we've a dialog concerning the availability of the form of tactical weaponry that he appears to have had.

And but we appear to be having that dialog over and over and over as a rustic.

MARGARET BRENNAN: I need to ask you a little bit bit on a private observe.

We have been speaking about this child formulation scarcity nationwide that is been ongoing now for months. You might have infants at dwelling. Do you've got issues getting a maintain of formulation?

SECRETARY PETE BUTTIGIEG: Yeah, that is very private for us.

We have got two 9 month previous kids. Child formulation is a really massive a part of our lives. And like hundreds of thousands of Individuals, we have been rooting round shops, checking on-line, getting in contact with kinfolk elsewhere the place they do not have the identical shortages to see what they will ship over. And we figured it out. We're all set, no less than for now.

However I take into consideration what that might be like if you happen to're a shift employee with two jobs, perhaps you do not have a automobile. You actually haven't got the time or the cash to be going from retailer to retailer. That is why that is such a critical problem. And that is why it is getting consideration on the highest ranges, together with, in fact, direct involvement by the president.

MARGARET BRENNAN: Nicely, and that is going to be a difficulty Congress takes up this week.

I do know the president stated extra motion is coming, however this has been ongoing for months. There are provide chain points already. Then you've got the difficulty with this one plant, Abbott, whistle-blower in September, February, the recall. It is Could. Why has it taken so lengthy? And why did the president on Friday appear to say that it was new info to him?

He stated, if we might been higher thoughts readers, I suppose we might have executed one thing earlier.

SECRETARY PETE BUTTIGIEG: Nicely, look, the administration acted from day one after the recall, taking steps like creating extra flexibility for the WIC program to assist rebalance the provision of formulation within the States. There are extra actions which are underway, together with taking a look at imports.

However, essentially, we're right here as a result of an organization was not capable of assure that its plant was protected. And that plant has shut down.

MARGARET BRENNAN: However that's the federal authorities's job as regulators to assist guarantee security of the plant.

SECRETARY PETE BUTTIGIEG: As regulators, sure, however let's be very clear.

This can be a capitalist nation. The federal government doesn't make child formulation, nor ought to it. Firms make formulation. And a type of firms, an organization which, by the way in which, appears to have 40 p.c market share, tousled, and is unable to verify that a plant, a significant plant, is protected and freed from contamination.

So a very powerful factor to do proper now, in fact, is to get that plant in Michigan up and operating safely. And that is the work that is happening between the corporate and the FDA. It is bought to be protected and it is bought to be up and operating as quickly as potential.

However that is the distinction between a provide chain drawback, in different phrases, an issue about shifting items round, and a provide drawback, which has to do with whether or not they're being produced within the first place.

Now, the administration's additionally been working with different firms to attempt to surge their manufacturing. That is led to a rise in manufacturing, which helps to compensate. However, on the finish of the day, this plant wants to return again on-line safely.

MARGARET BRENNAN: And we'll have extra on that later within the present, however -- as a result of I do know you are not the FDA commissioner.

Let me discuss to you concerning the issues you're concerned extra in, which is provide chain and procurement.

How is the administration ensuring that these important components which are truly required for one thing like formulation are literally obtainable?

SECRETARY PETE BUTTIGIEG: So, a scarcity of components is just not what led to the shutdown of the ability, proper?

MARGARET BRENNAN: No, however it's a issue that has led to cost inflation. It is one of many elements amongst many who has been blamed for months of issues with child formulation even earlier than the recall in February.

SECRETARY PETE BUTTIGIEG: Proper, however America has the productive capability to create the child formulation that we want. I feel what...

MARGARET BRENNAN: However you are attempting -- bringing it in from Europe proper now.

SECRETARY PETE BUTTIGIEG: Proper.

However that is as a result of, once more, we have got 4 firms making about 90 p.c of the formulation on this nation, which we should always in all probability check out. And one...

MARGARET BRENNAN: Is that an oligopoly?

SECRETARY PETE BUTTIGIEG: Yeah, I imply, it is principally a collection of monopolies which have added up into monumental market focus.

By the way in which, this is a matter the president has been speaking about in space after space after space, whether or not we're speaking about fertilizer, whether or not we're speaking about different issues in our agriculture sector, or extra usually.

MARGARET BRENNAN: However there are contracts there too...

SECRETARY PETE BUTTIGIEG: Sure.

MARGARET BRENNAN: ... as a result of that is additionally a part of -- I am utilizing the time period meals stamp program.

SECRETARY PETE BUTTIGIEG: Proper.

MARGARET BRENNAN: However it's part of a authorities help program.

SECRETARY PETE BUTTIGIEG: Which is strictly why, once more, from day one after the recall...

MARGARET BRENNAN: This is not only a non-public sector drawback, is my level. The federal authorities is immediately concerned in a few of these preparations.

SECRETARY PETE BUTTIGIEG: A plant shutting down as a result of an organization cannot guarantee that it's bodily protected from contamination is the duty of the corporate.

The duty of the regulator is to make sure, as they take steps to get it prepared, that it'll actually be protected when it comes again on-line.

MARGARET BRENNAN: I've a lot extra to get to as properly.

I need to get you on inflation. Gasoline costs, highest ever value within the nation, $4.45 a gallon nationwide common. Are you asking Individuals to drive much less?

SECRETARY PETE BUTTIGIEG: No, what we're asking Individuals to do is to clearly acknowledge that we're working this problem as a result of we're feeling it, too. I imply, all of us see that ache on the pump.

MARGARET BRENNAN: Ought to Individuals drive much less?

SECRETARY PETE BUTTIGIEG: Look, what we need to do is create choices for Individuals to have the ability to get the place they are going extra affordably.

It is why we up the gas economic system requirements, in order that, by the 2026 mannequin yr, the automobiles shall be a lot extra environment friendly, you probably have a fuel automobile, that you simply -- if you happen to used to must refill 4 occasions a month, it is likely to be three now.

After all, we're additionally working to make electrical automobiles extra reasonably priced, as a result of that has an enormous profit, particularly by way of defending households from these sorts of value volatility.

MARGARET BRENNAN: These battery parts are additionally a provide chain problem.

SECRETARY PETE BUTTIGIEG: Proper.

So, are we going to take that as an excuse to do nothing and do the identical factor eternally, or are we going to take that as a difficulty to work? We're taking it as a difficulty to work on. However, proper now, with current know-how, we all know that we are able to get extra Individuals into these automobiles.

And we additionally know, proper, that with fuel costs on the rise -- and the president's acted with the Strategic Petroleum Reserve. He is acted with ethanol flexibility to attempt to stabilize these costs. However we additionally know, proper now, that we may very well be reducing different prices for Individuals.

And that is a very powerful factor I feel we have to take a tough have a look at proper now, once we're preventing inflation with every thing that we have, that we made the case to decrease the price of insulin to $35 and confronted principally unified Republican opposition, tried to decrease the price of pharmaceuticals, and had been blocked from doing so by congressional Republicans, who then come round and need to speak about inflation, with out providing a plan.

MARGARET BRENNAN: However the public is not taken with issues that did not work, proper, or did not go or aren't legislation. They need to know what is going on on proper now,at their kitchen desk and of their pocketbooks.

SECRETARY PETE BUTTIGIEG: Nicely I feel they need to know what Congress goes to do to decrease their prices.

MARGARET BRENNAN: Let's speak about that as a result of I need to...

SECRETARY PETE BUTTIGIEG: And we're making the case for that to occur...

MARGARET BRENNAN: I need to ask you about what the administration thinks in regard to what some congressional Democrats, like Senator Warren -- Speaker Pelosi additionally says she's placing ahead a invoice about value gouging by firms and banning unconsciously extreme pricing.

This has been known as harmful and misguided nonsense by the Obama administration financial adviser Jason Furman. Do you agree that it's nonsense?

SECRETARY PETE BUTTIGIEG: I am not accustomed to all the particulars of that laws.

However what I can inform you from an administration perspective is that there's steerage going out to crack down on value gouging the place we see it. If value gouging arises within the formulation market or the gas market...

MARGARET BRENNAN: Is that what -- how a lot of an element is that, although?

SECRETARY PETE BUTTIGIEG: Look, one factor that we all know is that we're on this second, proper, the place we're feeling -- Individuals are feeling the pinch on product after product.

And a few firms have change into ridiculously worthwhile, notably together with oil firms, which have particularly stated they don't seem to be going to make use of the permits and the manufacturing capability that they've. Why would they? They're extremely worthwhile proper now. They don't seem to be complaining. They don't seem to be sad concerning the state of affairs.

The general public is sad. The president is sad. And we're taking motion.

MARGARET BRENNAN: We'll go away it there.

Secretary Buttigieg, good to have you ever right here in individual.

SECRETARY PETE BUTTIGIEG: Thanks.

MARGARET BRENNAN: And good luck with the child formulation.

SECRETARY PETE BUTTIGIEG: Thanks.

MARGARET BRENNAN: Face the Nation shall be proper again.

(ANNOUNCEMENTS)

MARGARET BRENNAN: And we flip now to Dr. Scott Gottlieb, former Trump FDA commissioner and Pfizer board member. Good morning to you, Physician.

DR. SCOTT GOTTLIEB (Former FDA Commissioner): Good morning.

MARGARET BRENNAN: I need to faucet into your perspective, as somebody who ran the FDA.

You simply heard the administration's view that this child formulation scarcity is absolutely the failure of 1 firm right here and that the FDA is not essentially absolutely chargeable for making certain issues at that plant. I'm wondering the way you reply to that.

DR. SCOTT GOTTLIEB: Nicely, these look, had been persistent issues that seem to have been dealt with poorly, definitely by the corporate.

FDA did not exert all of the oversight that they might have of that facility. There have been identified issues with that facility going again a few years. There have been findings on earlier inspections.

The company had a 34-page whistle-blower report in hand making fairly critical allegations that there was knowledge falsifications info -- knowledge falsification info withheld from inspectors. So these ought to have prompted extra aggressive motion earlier.

I feel, now that that facility has been shut by Abbott and manufacturing is not happening, it is going to be arduous to clear the ability. The overhang of allegations of knowledge falsification are going to be the sorts of allegations which are arduous for the company to clear, even when they don't seem to be capable of show a causal relationship between the infections that we noticed in kids and the ability itself, which -- which, up to now, the company hasn't been capable of show, they usually might by no means be capable of show that.

MARGARET BRENNAN: Mm-hmm.

You simply stated that the FDA did not do all it might. We all know they did not examine the Abbott facility again in 2020. They stopped inspecting some locations throughout the pandemic that weren't mission-critical.

Is not child formulation mission-critical? How does the ability not get inspected by the FDA?

DR. SCOTT GOTTLIEB: Nicely, look, it's mission-critical.

And through the federal government shutdown, we truly preserved inspections of toddler formulation crops due to the dangers related to these services.

MARGARET BRENNAN: Whenever you had been in workplace.

DR. SCOTT GOTTLIEB: And that facility in all probability ought to have been inspected, particularly -- once I was in workplace -- particularly given the truth that there had been prior findings there.

The truth that FDA went into that facility this yr and located 5 completely different strains of Cronobacter, that may be a critical concern. And it would not seem to have been a state-of-the-art facility, based mostly on the findings in that 483.

So, they need to have been below shut supervision. Look, we've -- we've type of the worst of each potential worlds proper now. We have now a regulatory scheme that's stringent sufficient that it does create obstacles to entering into the marketplace for new entrants. There's solely been one new entrant within the final 15 years that is a domestically based mostly producer, an organization, ByHeart.

However, on the identical time, it would not present stringent sufficient oversight of the ensuing oligopoly -- three firms management 80 p.c of the market -- to make sure that there isn't any snafus that may trigger shutdown of these services.

And so, while you do have a shutdown, when the market's that concentrated, it creates these distributed shortages that we're seeing proper now which are very arduous to resolve. They are going to ultimately have to get that facility reopened.

MARGARET BRENNAN: Sure.

DR. SCOTT GOTTLIEB: The timeline for that's very unclear proper now.

MARGARET BRENNAN: And that is what I wished to ask you. I am certain the FDA commissioner shall be questioned about that on Capitol Hill this week.

However you stated it is a damaged market. And also you're pointing to regulation failures. That whistle-blower report stated they failed to keep up correct data and launched untested child formulation. There's all types of allegations in right here.

Does this sound like felony habits to you?

DR. SCOTT GOTTLIEB: Probably.

And that whistle-blower report was head -- despatched to the top of the Workplace of Felony Investigations at FDA. So it does seem like a classy whistle-blower. Keep in mind, this division at FDA is 9 individuals. And it was even fewer individuals once I was there. It is grown in recent times.

And we made some price range requests to extend the dimensions of that group. So your complete business on this nation is overseen by 9 individuals. This has been an under-resourced a part of the company for a really very long time, and that is contributing, I feel, to those challenges that the company is going through, attempting to exert extra vigorous and extra environment friendly oversight.

MARGARET BRENNAN: Yeah.

DR. SCOTT GOTTLIEB: These allegations are going to be very arduous to clear.

And one other problem could also be that the individuals who the whistle-blower has implicated -- and FDA has interviewed that whistle-blower -- could be the identical individuals now making representations to the company concerning the security of that facility.

MARGARET BRENNAN: Sure.

DR. SCOTT GOTTLIEB: And, if that is the case, that is going to complicate points.

MARGARET BRENNAN: We have now extra to speak about with you, as at all times. So stick with us. And, on the opposite facet of the break, we'll proceed the dialog.

So, stick with us on Face the Nation.

(COMMERCIALS)

MARGARET BRENNAN: If you cannot watch the total Face the Nation, you'll be able to set your DVR, or we're obtainable on demand. Plus, you'll be able to watch us by means of our CBS or Paramount+ apps.

And we're simply -- replayed on our CBS Information Streaming Community at midday Jap.

(ANNOUNCEMENTS)

MARGARET BRENNAN: We shall be proper again with much more Face the Nation.

Stick with us.

(ANNOUNCEMENTS)

MARGARET BRENNAN: Welcome again to Face the Nation.

We need to proceed now with former FDA Commissioner and Pfizer board member Dr. Scott Gottlieb.

Dr. Gottlieb, we have been speaking concerning the child formulation scarcity.

I need to ask you about COVID, however simply to choose up on one thing you stated, I feel you instructed me there are solely 9 individuals who oversee your complete child formulation business on this nation. 9?

DR. SCOTT GOTTLIEB: That is proper.

And I feel -- I feel there have been -- I consider there have been three once I began on the FDA. We bought some extra sources for that group. There's been extra sources added since then. And there is a price range request from the present administration so as to add 4 extra individuals.

However, yeah, solely 9 individuals proper now oversee -- oversee your complete business in america. And it was lower than that simply a number of years in the past.

MARGARET BRENNAN: That is astounding.

Let me ask you about COVID. We hit this horrendous milestone this week of 1 million deaths over your complete course of this pandemic. Proper now, we're averaging about 326 deaths per week. So we have come a far approach. However we heard from each Dr. Fauci and Dr. Walensky this week that they've began placing on masks after they go indoors as soon as once more. There's concern about an uptick.

What do you see by way of development strains? The place are we?

DR. SCOTT GOTTLIEB: Nicely, look, we're positively seeing a surge of an infection, significantly within the Northeast and elements of the Mid-Atlantic proper now.

If you happen to have a look at the modeling happening in these states, states like Connecticut and New York, it does seem that the infections are peaking proper now. And it is principally a wave of an infection pushed by B.2 and this new Omicron variant, B.2.12.1 that seems to be extra contagious and have extra immune escape than prior variants of Omicron.

It appears like the general public who're getting contaminated aren't individuals who had been beforehand contaminated with B.1, however some portion of the 40 p.c of people that escaped the prior wave of Omicron and are actually getting caught by this present wave.

I do consider that circumstances will proceed to return down -- wastewater knowledge collected by cities does present general circumstances coming down -- and that we should not have a giant wave of an infection this summer season, though there are fashions floating across the administration that does present a giant wave of an infection this summer season.

The underside line is, we did not see that in 2020. We did not see it in 2021, when B.117 emerged within the spring. So this summer season needs to be a backstop towards continued unfold of this variant, however it does pose a danger for the autumn. And it is going to be necessary to be taught whether or not or not the brand new -- newly formulated vaccines that are actually in improvement will cowl this B.2 variant properly.

Hopefully, they'll. I consider they'll, however that continues to be to be seen.

MARGARET BRENNAN: However -- so that you reject the thought of a summer season surge, regardless that scientists like Dr. Birx, who was on this program only a few weeks in the past, is predicting and seeing a development line that makes her very involved that would occur, as a result of it is occurred earlier than?

DR. SCOTT GOTTLIEB: Yeah, and there's a mannequin that the White Home was briefed on final week that exhibits a giant surge of an infection in the summertime pushed by B.2 because it strikes into the Midwest and the West.

I imply, it's definitely potential, however different individuals disagree with that mannequin. There's the potential that you simply see a sluggish burn by means of the summer season. I feel it is extra possible that you'll see an infection ranges come down. Keep in mind, we thought that there was going to be a giant surge final yr and this summer season with B.117 when it emerged within the spring.

And as we bought into the later spring, an infection ranges got here down. We had a comparatively quiet June and July, after which Delta got here alongside in late August and began to create a brand new wave of an infection.

I feel that is in all probability the sample we will see once more, the place June and July are comparatively low, individuals do really feel protected once more, after which, as we head into the late summer season...

MARGARET BRENNAN: Yeah.

DR. SCOTT GOTTLIEB: ... in all probability B.2.12.1 goes to emerge or B.2 principally within the South.

MARGARET BRENNAN: Dr. Gottlieb, we'll be watching that. Thanks to your perception, as at all times.

Nicely, voters in 5 states head to the polls for midterm main elections this Tuesday, and people contests will decide which occasion candidates shall be on the poll in November.

However it's the contest amongst Republicans in Pennsylvania that's attracting lots of consideration.

Our Robert Costa tells us why.

(Start VT)

ROBERT COSTA (voice-over): High Republicans are flocking to Pennsylvania within the last days of the state's red-hot Senate main race, figuring out the state shall be an important battleground on this November's midterm elections.

(APPLAUSE)

SENATOR TED CRUZ (R-Texas): Each Republican operating for workplace says: "I really like Donald Trump."

(LAUGHTER)

SENATOR TED CRUZ: "No, no, no, I really like Donald Trump much more. No, no, no, I've Donald Trump tattooed on my rear finish."

(LAUGHTER)

ROBERT COSTA: And the highest three contenders are all pitching themselves as champions of Trump's political legacy.

However voters face a conundrum: Who precisely matches the invoice? Tv character Dr. Mehmet Oz gained Trump's endorsement final month. However Oz has since struggled to fend off two challengers, retired hedge fund supervisor David McCormick, whose spouse, Dina Powell, served within the Trump administration as a deputy nationwide safety adviser, and arduous proper candidate Kathy Barnette, whose fiery and deeply private message on abortion has caught fireplace with grassroots conservatives.

KATHY BARNETTE (R-Pennsylvania Senatorial Candidate): However it positively made me change into very adamant concerning the sanctity of life.

ROBERT COSTA: However as soon as polls in current days confirmed Barnette leaping into the highest tier, she additionally confronted new and intense scrutiny of her previous, together with homophobic and anti-Muslim statements. Barnette has principally denied and deflected, hoping to maintain up her momentum.

And on Saturday at what was billed as her last marketing campaign rally, Barnette spoke to supporters in Bucks County alongside Doug Mastriano, who was endorsed hours earlier by Trump within the race for governor.

MAN #1: Stand behind the cone, please.

ROBERT COSTA: However CBS Information and others had been refused entry, no entry, no questions allowed.

MAN #2: They instructed us, no presser.

ROBERT COSTA: OK.

Trump has been watching her rise rigorously, and warned his supporters to stay with Oz, arguing Barnette, if nominated, will -- quote -- "by no means be capable of win in November."

And her rivals are sounding the alarm.

You might have known as Kathy Barnette a thriller individual. What do you imply by that?

MEHMET OZ (R-Pennsylvania Senatorial Candidate): I known as Kathy Barnette a thriller, as a result of, each time she solutions a query, she raises a bunch extra questions. She's not clear about so many points of her fundamental biography, that we do not know who she is.

ROBERT COSTA: Would Kathy Barnette be a dangerous wager for Republicans in November?

DAVID MCCORMICK (R-Pennsylvania Senatorial Candidate): Nicely, pay attention, I've gotten to know Kathy on the marketing campaign path. I respect her story.

However Kathy has been examined. She was examined within the final 24 months in a congressional seat, which she misplaced by 20 factors.

ROBERT COSTA: However the race stays a tossup, with voters divided.

For Face the Nation, that is Robert Costa, reporting from Philadelphia.

(Finish VT)

MARGARET BRENNAN: We flip now to the struggle in Ukraine.

Senior overseas correspondent Charlie D'Agata has the most recent on the diplomatic entrance and the battlefield -- Charlie.

CHARLIE D'AGATA: Good morning, Margaret.

The Ukrainian authorities is claiming a key victory within the battle for Kharkiv. And with Finland now on the verge of becoming a member of NATO, President Vladimir Putin faces the prospect of sharing an 800-mile border with a NATO accomplice.

(Start VT)

CHARLIE D'AGATA (voice-over): Finland immediately formalized its intention to use for NATO membership, with Sweden prone to comply with swimsuit within the days forward.

SAULI NIINISTO (President of Finland): We have now immediately a historic day. Finland will maximize its safety.

CHARLIE D'AGATA: President Putin has already warned the Finnish president he is made a mistake in becoming a member of the alliance.

It comes as Russia has confronted vital losses, pulling again from Ukraine's second largest metropolis of Kharkiv.

(VERA KUSOLOPENKO SPEAKING IN FOREIGN LANGUAGE)

CHARLIE D'AGATA: However the shelling continues; 67-year-old Vera Kusolopenko misplaced every thing to a Russian missile.

(VERA KUSOLOPENKO SPEAKING IN FOREIGN LANGUAGE)

CHARLIE D'AGATA: "This was my dwelling," she stated, "and, yesterday, it was burned down."

Russia has now turned its firepower on Jap Ukraine's industrial Donbass area, concentrating on infrastructure, bridges, oil refineries warehouses.

However standing right here, trying on the dimension of this crater in the midst of a dust highway in a quiet residential neighborhood, it is arduous to know precisely what the Russians had been aiming for.

The sheer devastation brought on by an airstrike in Bakhmut that tore houses aside, leaving residents homeless and livid.

(WOMAN SPEAKING IN FOREIGN LANGUAGE)

CHARLIE D'AGATA: "We want assist," a lady shouts in despair. "Every little thing is destroyed, damaged," salvaging what's left of their houses and their lives.

(Finish VT)

CHARLIE D'AGATA: British army intelligence reviews that, regardless of that form of bombardment, Russia has failed to realize substantial territorial positive aspects up to now month, and it is possible Russia has misplaced round a 3rd of the bottom forces it dedicated to the invasion of Ukraine -- Margaret.

MARGARET BRENNAN: Charlie D'Agata, thanks.

We shall be proper again.

(ANNOUNCEMENTS)

MARGARET BRENNAN: We need to return now to the economic system and the monetary challenges going through this nation.

We flip to the previous CEO and present senior chairman of Goldman Sachs, Lloyd Blankfein, who joins us from Water Mill, New York.

Good morning to you.

LLOYD BLANKFEIN (Senior Chairman, Goldman Sachs): Good morning, Margaret.

MARGARET BRENNAN: You already know, Individuals have not skilled inflation like this in 40 years now.

And the costs yr over yr are fairly unbelievable, while you have a look at them, fuel up 44 p.c, eggs 23 p.c improve yr over yr. There's spillover into the providers too now. I imply, you have a look at lodge costs, 23 p.c improve.

LLOYD BLANKFEIN: Positive.

MARGARET BRENNAN: ... airways over 30.

What does all of this point out to you?

LLOYD BLANKFEIN: Nicely, wage as properly.

I'll inform you how we bought right here. We had this large exogenous occasion, COVID, lockdowns all world wide. And, on the time that this was -- that this was starting, it was an enormous disaster.

And I'd say -- you say worse in 40 years, form of unprecedented that all over the place on this planet all lock down on the identical time. In response, there was an enormous public coverage response, and -- to overwhelm it. And it was a little bit little bit of preventing the final struggle, in some methods, as a result of, within the monetary disaster, you recall, the sensation within the aftermath was it took a very long time to get better from that.

So, this time, we had been going to go massive. And we went massive. And that created lots of liquidity. And all these dollars are change -- are chasing -- are chasing property.

MARGARET BRENNAN: Mm-hmm.

So...

LLOYD BLANKFEIN: So, we've an excessive amount of progress, an excessive amount of stimulus.

MARGARET BRENNAN: An excessive amount of progress. An excessive amount of stimulus.

So that you agree with the San Francisco Fed...

LLOYD BLANKFEIN: Proper.

MARGARET BRENNAN: ... after they level to issues like all of the fiscal spending including to inflation?

LLOYD BLANKFEIN: Positive.

Now, once more, on the time, it was very unsure. And a very powerful factor was to not have it -- was to not lose all these jobs and have an enormous disaster.

MARGARET BRENNAN: Proper.

LLOYD BLANKFEIN: And they also reacted. And I feel they reacted sensibly with what they knew on the time.

MARGARET BRENNAN: Mm-hmm.

LLOYD BLANKFEIN: And you'll argue about that, however that is all with the good thing about hindsight.

MARGARET BRENNAN: Proper.

Nicely, let's speak about what's occurring now to attempt to management it. So it's the Federal Reserve's job.

LLOYD BLANKFEIN: Positive.

MARGARET BRENNAN: You already know this.

LLOYD BLANKFEIN: Positive.

MARGARET BRENNAN: However, for our viewers, it is the central banker's job management inflation right here.

Chairman Powell stated getting it right down to 2 p.c goes to contain some ache. What does that point out to you? And do you assume the Fed is doing what is required proper now?

LLOYD BLANKFEIN: Nicely, the article is, there's an imbalance, an excessive amount of demand.

And what you must do is, you must decelerate that demand. It's a must to decelerate the economic system. And so they will have to lift charges. They are going to must curtail, hopefully cut back the variety of positions which are unopened, as a result of they -- and improve the dimensions of the labor power.

And that is going to contain some ache. And the actual ache is just not so -- is partly what the Fed goes to do, however it's simply that this inflation, a few of it's sticky. It'll be -- you recognize, we've one thing like 8 p.c inflation.

A few of that's transitory. A few of that's transitory, will go away. Finally, the struggle within the Ukraine shall be over. A few of the provide chain shocks will go away. However a few of it will likely be a little bit bit stickier and it will likely be with us for some time. And whereas we're speaking about this within the macro sense, general, for people and positively the people on the backside quartile of the pie sharing, it is going to be fairly troublesome and oppressive.

MARGARET BRENNAN: Tough and oppressive.

I imply, you lived by means of the final monetary disaster...

LLOYD BLANKFEIN: Positive.

MARGARET BRENNAN: ... Goldman Sachs clearly a key half. You already know it very properly.

Whenever you say it took a very long time, it took about 10 years to get better from the final monetary disaster..

LLOYD BLANKFEIN: Yeah. That is fairly a very long time.

MARGARET BRENNAN: Yeah.

So, given what you are saying is unprecedented, what does restoration appear like? Are you saying strap in for greater than a decade of wrestle right here?

LLOYD BLANKFEIN: Nicely, it is -- properly, no, no. It is a little bit bit completely different. There was loads -- lots of various things happening.

And there have been -- it is at all times no less than a little bit bit completely different. That is -- that is form of a lot completely different. And, there, you had the banks in hassle, lots of misery, lots of liquidity points, massive credit score points. No one was certain who was capable of pay their money owed as they arose.

And that took -- after which, once more, the monetary system is the middleman by which Fed accomplishes its exercise. That is not impaired immediately. Truly, the buyer is beginning out at a powerful degree. There's lots of -- it'll be arduous for individuals to have financial savings, however they have already got financial savings. They don't seem to be essentially going to extend it rapidly due to inflation.

However they're beginning in a significantly better place than we had been then.

MARGARET BRENNAN: Mm-hmm.

LLOYD BLANKFEIN: And the Fed has very, once more, highly effective instruments.

A few of it will transition away. A few of the provide chain points, once more, will go away. China will not be locked down eternally. The struggle is not going to go -- within the Ukraine is not going to go on eternally. A few of it -- and a few of these issues are a little bit bit stickier, like power costs.

And there are some components of the provision chain which are going to be loads stickier.

I will provide you with an instance. We had been the beneficiary for...

MARGARET BRENNAN: Sure.

LLOYD BLANKFEIN: ... a really very long time of the globalization of the economic system, which made items and providers cheaper as a result of we took benefit of low cost labor and nations.

MARGARET BRENNAN: Proper.

LLOYD BLANKFEIN: Nicely, how good will we really feel, with what we have realized to be relying -- and this as a part of your final discuss with -- with Secretary Buttigieg.

How snug are we now to depend on these provide chains that aren't inside the borders of america that we will not management?

MARGARET BRENNAN: Sure.

LLOYD BLANKFEIN: Can we be ok with getting all our semiconductors from Taiwan, which is, once more, an object of China?

MARGARET BRENNAN: Do you assume we're headed in the direction of recession?

LLOYD BLANKFEIN: We're definitely heading -- it is definitely a really, very excessive danger issue.

And there is -- however there is a path. It is a slim path. However I feel the Fed has very highly effective instruments. It is arduous to finely tune them, and it is arduous to see the consequences of them rapidly sufficient to change it. However I feel they're -- I feel they're responding properly.

I feel it is -- it is...

MARGARET BRENNAN: Yeah.

LLOYD BLANKFEIN: It is positively a danger. If I had been operating a giant firm, I'd be very ready for it. If I used to be a shopper, I'd be ready for it. However it's not baked within the cake.

MARGARET BRENNAN: All proper, Lloyd Blankfein, thanks to your insights.

We'll be again in a second.

(ANNOUNCEMENTS)

MARGARET BRENNAN: Former Secretary of Protection Mark Esper is out with a brand new ebook known as "A Sacred Oath," which chronicles his time within the Trump administration.

Mr. Secretary, welcome again to Face the Nation.

MARK ESPER (Former U.S. Secretary of Protection): Margaret, nice to be with you.

MARGARET BRENNAN: I need to discuss to you about plenty of issues,. however you probably did say not too long ago that, after the occasions of January 6, which happened while you had been out of workplace, that you simply now take into account President Trump a risk to democracy.

The committee that is investigating January 6 is about to start public hearings. And so they've stated they've of their possession a draft govt order that might have had the then-defense secretary seize voting machines, and that the Division of Justice and the Pentagon would then be concerned by some means in stopping the switch of energy.

Do you assume it is necessary for that committee to put out these info to the general public?

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: Nicely, first, let me prolong my condolences, by the way in which, to the households and mates of these tragically murdered yesterday in Buffalo.

However, to your query, sure, I feel the January 6 Committee must resolve the reality of what occurred on January 6, the occasions main as much as it, and perceive it, so, we -- there's a diploma of form of accountability, and, second, we've classes realized to ensure it would not occur once more. It is completely necessary.

MARGARET BRENNAN: However it's -- I imply, simply even laying that out to you, it's form of astounding to listen to.

And in your ebook, you write Normal Milley truly had an settlement with the opposite members of the Joint Chiefs, the lead army commanders within the nation, to all resign if President Trump tried to make use of the army to cease the switch of energy. You write about personally caring that that is what he was attempting to do.

So, you noticed proof otherwise you had good motive to consider there was an try right here to principally stage a coup?

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: I had lots of concern about what would possibly or won't occur within the months main as much as the election, proper?

There was speak about conducting strikes towards -- army strikes towards different nations. The president by means of the summer season was speaking about sending troops into Seattle and Portland.

And I write about within the last days, I had this non-public assembly with the top of the Nationwide Guard and Normal Milley, and I speak about what would possibly or won't occur the day after the election, concern that there could also be the usage of the army by some means to affect the end result.

And, look, I -- there's been lots of criticism about why I did not communicate up. It is as a result of I wished to be there on the spot if any of these items occurred to be the circuit-breaker, as a result of the one two individuals in america that may deploy troops, U.S. army troops, are the president and the secretary of protection.

And I used to be in that pivotal place to behave if I assumed one thing was outlandish, irresponsible or would have an effect on the establishment of DOD or our nation. That is what it got here right down to for me.

MARGARET BRENNAN: So, that is why you did not resign.

However why did not you communicate out as quickly as you left workplace? I do know you began writing the ebook inside months.

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: Yeah.

MARGARET BRENNAN: However why did not you communicate publicly about all of this?

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: Nicely, the election was over.

I feel, like many people, I figured the president would -- would problem the election, like others have executed up to now, and, after a number of weeks, it will be over, and we might have a peaceable transition of energy.

MARGARET BRENNAN: However he did. There was an impeachment listening to on -- about what occurred with January 6...

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: Positive.

MARGARET BRENNAN: ... and about whether or not there have been makes an attempt to cease the peaceable switch of energy.

You are saying you truly had been fearful about that your self.

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: Nicely, I used to be involved.

You at all times must assume by means of various situations, what would possibly or won't occur. And I'd have spoken out if known as for to do it. I stated on one other community I'd have definitely spoken out if he had gained the election.

However he did not. And at that time limit, I used to be patiently ready to see what would occur, ensure that the peaceable switch of energy occurred. As you recognize, I joined my different -- the residing secretaries of protection, wrote an op-ed on January 3, three days previous to the transition, expressing our concern concerning the peaceable handover of energy and warning the Pentagon, if you'll, concerning the significance of them doing their responsibility.

MARGARET BRENNAN: You speak about and have spoken rather a lot this previous week concerning the occasions in Lafayette Sq..

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: Proper.

MARGARET BRENNAN: And it is an necessary little bit of the general public report.

You had been within the Oval Workplace with the president and he spoke a few very particular quantity, 10,000, of active-duty troops doubtlessly being despatched into the streets of Washington, D.C.

I need to play a clip for you right here as a result of I requested the then-Legal professional Normal Invoice Barr about precisely that.

(Start VT)

MARGARET BRENNAN: A senior administration official instructed our CBS' David Martin that, in a gathering on the White Home on Monday morning, the president demanded that 10,000 active-duty troops be ordered into American streets.

Is that correct?

WILLIAM BARR (Former U.S. Legal professional Normal): No, that is utterly false. That is utterly false. Sunday evening...

MARGARET BRENNAN: The president didn't demand that?

FORMER U.S. ATTORNEY GENERAL BARR: No, he didn't demand that.

(Finish VT)

MARGARET BRENNAN: Why do you appear to have completely different recollections?

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: I do not know.

You already know, I wrote about this in my ebook that Invoice Barr and I've completely different recollections. After all, if you happen to undergo my story, you will perceive that the president calls over to the Pentagon earlier that morning and talks about 10,000 troops.

That is once I'm first made conscious of this request. And, look, I do not know why we've completely different recollections. I feel, in all these circumstances, individuals hear or see various things. However I am 110 p.c assured of what the president was searching for that morning.

MARGARET BRENNAN: The previous lawyer normal stated it was utterly false.

Do you assume that was an effort to intentionally mislead the general public?

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: I do not know.

Once more, individuals have completely different recollections. Folks have requested me about issues that I merely cannot recall. All I do know is, the way in which we defused that is Invoice Barr, to his credit score, as a result of he was a very good accomplice on these items, put ahead 5,000 legislation enforcement officers, and I put ahead as much as 5,000 Nationwide Guard to deal with this.

I imply, do the mathematics. 5,000 and 5,000. In my thoughts...

MARGARET BRENNAN: You are attempting to retrofit this 10,000 arbitrary quantity.

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: Nicely, I am -- sure, I am attempting to form of give him his 10,000 with out giving him 10,000 active-duty troops.

And we pulled it off, and thank goodness. It was -- it was the way in which to form of get that down, get out of the room and get on with what we wanted to do.

MARGARET BRENNAN: Are you involved that, if the previous president stands for election, that he'll encompass himself with individuals who you're deeply crucial of who did not attempt to short-circuit?

I imply, you had been very crucial of Robert O'Brien, the nationwide safety adviser. You write concerning the chief of workers, Mark Meadows. You speak about Stephen Miller, all individuals who had been egging on a few of these instincts.

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: Yeah, completely, he'll.

He figured this out in 2020, after he beat impeachment. He talks about it. I describe this second within the ebook, the place he thinks concerning the individuals he ought to put into workplace. And so, sure, that may be a concern of mine, if he runs and is reelected, completely.

MARGARET BRENNAN: However ought to any of these individuals have any proximity to public workplace proper now?

FORMER U.S. SECRETARY OF DEFENSE MARK ESPER: I do not assume so, however that is my opinion.

MARGARET BRENNAN: Nicely, they're names that we're watching and we are going to proceed to cowl.

Mark Esper, much more on this ebook. It's price studying. Thanks.

We shall be proper again.

(ANNOUNCEMENTS)

MARGARET BRENNAN: Watch the CBS Night Information With Norah O'Donnell tomorrow evening for an unique interview with the president of the corporate that makes the Enfamil formulation for infants.

That is it for immediately. Thanks for watching.

Till subsequent week, for Face the Nation, I am Margaret Brennan.

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