| | | | |  | | By Eli Okun | | Presented by |  | | | |  | THE CATCH-UP | | |  Donald Trump is trying to brand inflation as "Kamalanomics." | Joe Raedle/Getty Images | The country’s policy fight against inflation may be coming to an end. For the first time since the early months of the Biden administration, annual inflation dipped below 3 percent in the latest Consumer Price Index data out today. Year over year, prices climbed 2.9 percent in July, down from June and softer than economists had expected. The “core” measure, stripping out food and fuels, was 3.2 percent, also lower than in June. Some categories saw outright price declines, including used cars and plane tickets. Details from Bloomberg The 3 percent milestone, of course, is still higher than the Fed’s preferred 2 percent benchmark. But it’s a shadow of inflation’s pandemic-triggered peak, and the data should keep the central bank on track to cut interest rates finally at its meeting next month. It increasingly seems clear that the principal challenge now for policymakers is preventing the economy from cooling down too much under the strain of high rates, Sam Sutton reports. But, but, but: If inflation is winding down, many Americans have yet to get the memo. Prices are still way higher than they were just a few years ago, before Covid-19 upended everybody’s lives, and angst over prices still tops lists of voters’ concerns. (Housing is a particular sore spot, and indeed shelter costs made up almost 90 percent of last month’s increase.) That explains why VP KAMALA HARRIS and DONALD TRUMP are focusing heavily on prices on the campaign trail — and why Harris is making something of a pivot from President JOE BIDEN’s economic messaging. Though Harris’ economic policy speech Friday in North Carolina isn’t expected to get very specific, it will signal a “reboot” from Biden’s emphasis on manufacturing jobs to a new intensity around bringing down the cost of living, NYT’s Jim Tankersley and Andrew Duehren report. (A reboot in rhetoric, at least, if not in policy substance.) She’ll call for Child Tax Credit expansion and more affordable housing. It’s all “part of a highly choreographed effort to define herself — in some cases, redefine herself — as a different kind of Democrat,” with a forward-looking plan to fight inflation, Axios’ Mike Allen and Jim VandeHei report. Harris’ team also thinks that her biography as a former prosecutor could give more oomph to her efforts to criticize corporate price gouging, WSJ’s Andrew Restuccia, Tarini Parti and Emily Glazer report. And as Biden’s efforts to create a green-energy jobs boom start to bear more fruit, Democrats could benefit from saying that “we’re not going back” on the energy transition, The New Republic’s Greg Sargent writes. The Trump team clearly sees prices as the terrain on which it wants to fight, too, given that voters’ frustration with inflation has been the No. 1 driver of dissatisfaction with governing Democrats for years now. Today, despite the more positive inflation report, the Trump campaign blasted “Kamalanomics” to try to saddle her with the baggage of high prices. And WaPo’s Eva Dou precisely captures the opening for Republicans in a story from Midland, North Carolina: Voters there are unconvinced by a big tech manufacturing boom that’s due to arrive soon, and instead focused on negativity about inflation. 12 YEARS LATER — “Biden says he ‘repeatedly pressed’ Syria to discuss Austin Tice, calls for urgent release,” by McClatchy’s Michael Wilner FOR YOUR CALENDAR — The CNN-POLITICO Grill will return next week with the opening of the Democratic National Convention in Chicago. And we’ve just released the schedule for the first set of can’t-miss interviews you can watch in person or online. Among the highlights: North Carolina Gov. ROY COOPER interviewed by Ryan, Senate Majority Leader CHUCK SCHUMER interviewed by Rachael, Sen. LAPHONZA BUTLER (D-Calif.) interviewed by Eugene and Transportation Secretary PETE BUTTIGIEG interviewed by Adam Wren. The full lineup, with more to come Good Wednesday afternoon. Thanks for reading Playbook PM. Drop me a line at eokun@politico.com.
| | | | A message from Comcast: Did you know that most of the data on your smartphone travels over WiFi, not cellular? Thanks to WiFi innovation by Comcast, our customers connect over a billion devices to our network each year. Unlicensed spectrum is key to a fast and secure WiFi experience at home and on the go. Comcast leads the way by developing cutting-edge WiFi gateways that maximize our multi-gig broadband network and spectrum made available by the FCC. Learn more. | | | | | 8 THINGS YOU NEED TO KNOW | | |  VP Kamala Harris will have a bus tour of Pennsylvania ahead of the convention. | Carlos Osorio, File/AP Photo | 1. CONVENTIONAL WISDOM: With the Harris campaign gearing up for the Democratic National Convention, they announced a major $90 million ad campaign targeting swing states over the coming three weeks, per AP’s Zeke Miller. It’ll reach some smaller markets for the first time. Harris and Minnesota Gov. TIM WALZ will also take a bus tour of Pennsylvania on Sunday before the convention begins, per CNN’s Eva McKend and Piper Hudspeth Blackburn. He’ll also campaign in Omaha, Nebraska, on Saturday, NBC’s Yamiche Alcindor reports. The convention social calendar is filling up with official “DemPalooza” daytime events, per WaPo’s Michael Scherer, while Fox News’ Paul Steinhauser reports that Republicans are planning to step up their counterprogramming. On the trail, Harris’ policy vagueness has left the energy industry guessing about where she really stands on their issues. Her aides tell Reuters’ Jarrett Renshaw that the “strategic ambiguity” is intentional, though she’d likely hew closely to Biden’s approach. Politically, Harris could get an organizing boost from her connections to the Divine Nine, the Black Greek organizations, NBC’s Char Adams reports. 2. DIGGING INTO HARRIS’ RECORD: A pair of interesting articles today go in depth on important aspects of Harris’ tenure in national politics. On immigration, AP’s Dan Merica, Nicholas Riccardi and Chris Megerian find that Harris focused on a “long-term — and limited — approach” to strengthening the Northern Triangle economies, rather than the immediate humanitarian crisis at the U.S.-Mexico border. It was an arena where Harris felt she could make real change over time — and a relatively less risky one for her politically. When she was in the Senate, one of her most prominent roles was serving on the Intelligence Committee through “Russiagate,” as NOTUS’ Byron Tau and John Seward detail. In private, she was aggressive in urging the panel to probe Russian election meddling. Her prosecutorial experience stood out in shaping what ultimately was a rare bipartisan report. And her time on the committee also gave Harris a crash course in national security issues. 3. SURVEY SAYS: There are a handful of notable new polls out today, all consistent with a tight race in which Harris has improved over Biden and maybe taken a narrow lead.
- The Cook Political Report finds Harris ahead in five of the seven main swing states, including North Carolina, while Trump leads in Nevada and they’re tied in Georgia.
- And a broad Equis Research poll of swing-state Latinos shows Harris nearly quadrupling Biden’s lead from 5 points to 19 points — though she’s still below Biden’s 2020 mark.
4. MONUMENTAL NEWS: “Congress didn’t recognize a race riot. Biden will make the site a monument,” by WaPo’s Maxine Joselow: “In 1908, a White mob incited a race riot in Springfield, Ill., leaving several people dead, hundreds injured and dozens of Black-owned businesses and homes burned and destroyed. On Friday, President Joe Biden will designate a national monument to commemorate the violent event … Biden will bypass the [congressional] gridlock by using his executive authority under the Antiquities Act.”
| | | | WELCOME TO THE CNN-POLITICO GRILL AT THE DNC! If you are in Chi-Town next week, join us at the CNN-POLITICO Grill just steps from the United Center for daily events and live programs. Featuring an all-star lineup of the most influential Democrats including Gov. JB Pritzker, Sen. Chuck Schumer, Secretary Pete Buttigieg, Gov. Roy Cooper and many more surprise guests. In fact, word on the street (West Madison Street, to be precise) is that Speaker Emerita Nancy Pelosi will be in the neighborhood and could drop by! Don’t miss out on the buzziest conversations and newsworthy events hosted by POLITICO’s top reporters and editors. RSVP HERE. | | | | | 5. KICKING OFF TODAY: “As Famine Deepens in Sudan, U.S. Leads New Push for Ceasefire,” by NYT’s Declan Walsh: “But Sudan’s military, one of the war’s two main belligerents, has said it will not attend the negotiations in Switzerland, stymying hopes of a quick cease-fire … Appalled at the scale of the war-induced catastrophe … American officials said it was urgent to begin the new peace drive, even if chances of a breakthrough seem slim.” 6. BREAKING DOWN WALZ: As the nation gets to know Walz, his record is coming in for scrutiny and celebration. In Minneapolis, NYT’s Mitch Smith dives deep into his handling of the riots after GEORGE FLOYD’s murder in 2020: Walz did “not immediately anticipate how widespread and violent the riots would become and did not mobilize the Guard when first asked to do so. … [A]s the violence increased, Mr. Walz moved to take command of the response.” On the lighter side, WaPo’s Ben Strauss and Ben Terris pen another chronicle of Walz’s coaching days that compares him to ERIC TAYLOR from “Friday Night Lights,” but “a bit kinder and nicer.” And NYT’s Joseph Bernstein has an interesting profile of GWEN WALZ, a former teacher like her husband who works on policy with him in Minnesota and is known as “coolheaded and ultracompetent.” (Quite the detail: For their first date in 1993, he chose the movie “Falling Down.”) 7. WHAT MBS IS UP TO: “The Saudi Crown Prince is Talking About An Assassination. His Own,” by Nahal Toosi: “Many people want to kill the Saudi leader, but is he using such threats as a means to get the U.S. to pressure Israel on a future Palestinian state? … [MOHAMMED BIN SALMAN] appears intent on striking the mega-deal with the U.S. and Israel despite the risks involved. He sees it as crucial to his country’s future. … To MBS’ chagrin, however, the Israeli government has been unwilling to include a credible path to a Palestinian state in the pact.” 8. THE LETTER OF THE LAW: “A proposed amendment lacks 1 word that could drive voter turnout: ‘abortion,’” by AP’s Anthony Izaguirre in Albany, New York: “A proposed amendment to New York’s constitution meant to protect abortion access is a crucial part of Democrats’ plans to drive voter turnout in the state this fall and potentially flip vital congressional districts. But there could be a problem: The ballot question doesn’t mention the word ‘abortion.’ Arguments began Wednesday over a lawsuit Democrats hope will force election officials to include the term in an explanation of the amendment that voters will see when casting their ballots.”
| | | | DON’T MISS OUR AI & TECH SUMMIT: Join POLITICO’s AI & Tech Summit for exclusive interviews and conversations with senior tech leaders, lawmakers, officials and stakeholders about where the rising energy around global competition — and the sense of potential around AI and restoring American tech knowhow — is driving tech policy and investment. REGISTER HERE. | | | | | | | PLAYBOOKERS | | Chuck Schumer will speak at a “Crypto for Harris” virtual event tonight. Juan Merchan declined to recuse himself from Donald Trump’s hush money case. Hunter Biden is adding Mark Geragos as a new defense attorney. BOOK CLUB — Schumer is publishing a new book in February titled “Antisemitism in America: A Warning,” per AP’s Hillel Italie. Coming from Grand Central Publishing, the book will trace the Senate majority leader’s journey from growing up in Brooklyn to Jan. 6, along with recent antisemitic attacks in the U.S. TRANSITIONS — Stand Together is adding Kate (Sklar) Rothstein as comms director for social impact and Ansley Brown as media relations director for music and entertainment. Rothstein previously was comms and public relations senior manager at SoundExchange. Brown previously was director of comms at IMG. … Fabiola Pagán Meléndez is now legislative director for Rep. Emanuel Cleaver (D-Mo.). She most recently was legislative assistant for Sen. Bob Menendez (D-N.J.). … Diana Kelley is joining DLA Piper as a principal in the telecom practice. She most recently was satellite policy, spectrum and regulatory affairs manager at SpaceX. Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn’t happen without our editor Mike DeBonis, deputy editor Zack Stanton and Playbook Daily Briefing producer Callan Tansill-Suddath.
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