Washington News

"Relentlessly Gloomy" Economic Data Causes Stocks To Plunge A wave of poor economic data and a selloff on Wall Street Thursday, along with Moody's announcement that it is downgrading the credit ratings of the five largest US banks, are being interpreted as evidence that the US economy remains very weak. Dianne Sawyer, on ABC World News, asked, "Does this mean [investors] think inevitably there will be another recession?" Peter Barnes, on Fox News' Special Report, said, "Your investments, retirement accounts and maybe your job security all taking hits today."
The AP reports, "Relentlessly gloomy reports about the health of the world economy rocked Wall Street on Thursday, stirring more worry about the stalled recovery and sending the stock market to its second-worst decline this year." According to the AP, "The bad economic reports kept piling up: Manufacturing slumped in China"; a "closely watched unemployment figure jumped to its highest level in nine months"; while "sales of previously owned homes fell"; and "then came word of a sharp contraction in Northeast manufacturing, the worst since last August." The AP adds, "Suddenly, the outlook turned so bad that a Goldman Sachs analyst told clients to place bets against the stock market."
The New York Times attributes the decline in US stocks to many of the same factors. According to the Times, "Earlier in the week, traders bid up stocks in hopes that a Federal Reserve announcement scheduled for Wednesday would include a measure to stimulate the economy," but the Fed's "decision to extend its asset purchase program by buying about $267 billion in longer-term Treasury securities led analysts to question how much the program...would help economic growth."
NBC Nightly News reported the Dow Jones Industrial Average "was down 250 points," the Nasdaq "down over 71," and the S&P 500 "was down 30." NBC added, "Oil was down $3.25 a barrel to $78.20, the lowest it's been since October, down almost 10% just this month. Gas prices as you might imagine also falling to a national average now of just below $3.50 a gallon, also down from a month ago."
On ABC World News, Brianna Golodryga reported that "all eyes will turn to Ben Bernanke," the "lender of last resort. He said he will do whatever it takes to prevent another recession," and "if that means pumping more money into the economy, he says he stands ready to do that."
David Leonhart, in a post for the New York Times Economix Blog , said, "The latest batch of economic data has been fairly weak, especially surveys from the manufacturing sector. As a result, The Times's weekly jobs tracker, based on forecasts from Moody's Analytics, now shows a projected employment gain of only 125,000 in June, down from a projection of 150,000 last week." The Wall Street Journal says analysts believe the pace of hiring is not enough to overcome the current rate of layoffs.
Moody's Downgrades Ratings Of The Five Largest US Banks NBC Nightly News reported that also "weighing on stocks" was the news that Moody's "downgraded debt ratings of a dozen global banks, including the five largest banks here in the US amid concerns about profitability and challenging economic conditions."
The New York Times notes that Citigroup and Bank of America, "which have struggled to fully recover from the financial crisis, were among the hardest hit. After two-notch downgrades, their credit ratings now stand just two levels above junk." The Times says "the downgrades may only amplify their problems," because, "with lower ratings, creditors could charge the banks more on their loans," and "big clients may also move their business to less-risky companies, further crimping earnings."
The AP notes that Moody's "said it was especially concerned about banks with significant financial markets businesses because those markets have become so volatile. Some of the largest European banks were also downgraded, including Barclays, Deutsche Bank and HSBC." However, the AP also reports that "in a sign that investors were taking the news in stride, stocks of major US banks rose in after-hours electronic trading."

Bryson Resigns As Commerce Secretary NBC Nightly News reported Secretary of Commerce John Bryson "resigned today 12 days after being involved in two hit-and-run car accidents in Los Angeles linked to a seizure he suffered. President Obama thanked the 68-year-old Bryson for his service. Bryson said he's leaving to attend to his own health. Bryson's doctor said he suffered what's known as a 'complex partial seizure,' which can affect memory."
Politico reports that the resignation "ends the medical leave of absence he'd been on since a seizure caused his involvement in two car accidents in early June." The President and Bryson met on Thursday "for what White House press secretary Jay Carney said would be a chance for the president to 'thank [Bryson] for his service.'" Rebecca Blank "will continue to serve as acting Commerce secretary."
The Washington Post reports, "The legal case against Bryson is still unresolved. A spokeswoman for the Los Angeles County District Attorney's office, which will decide whether to file charges, said Thursday that police had not yet turned over the results of their investigation into the crashes."
The New York Times reports, "Mr. Bryson, a longtime California electricity conglomerate executive, served in the cabinet for just eight months and had kept a low profile in Washington during his short tenure."

White House Dismisses Fast & Furious Cover-Up Charges NBC Nightly News reported that on Thursday, there was "fallout...in the fight between Congressional Republicans and Attorney General Eric Holder over a botched anti-gunrunning operation known as Fast and Furious. One day after a House committee recommended that Holder be held in contempt of Congress, Speaker John Boehner signaled his backing for the action and hinted that the White House's use of executive privilege might involve some sort of a cover-up. White House spokesman Jay Carney fired back and said today the Administration isn't covering up anything."
Fox News' Special Report reported that Carney alleged that "GOP lawmakers are trying to damage President Obama with a political pursuit," which was "part of a strident defense of the President's claim of executive privilege." Ed Henry added that Carney "insisted President Obama's claim of executive privilege is not a coverup."
The AP reports that Boehner "demanded Thursday that the Obama administration give in and turn over documents...insisting that's the only way to stop a House vote to hold the attorney general in contempt." The AP adds that while the contempt standoff hinges on legal precedents and Congressional procedures, Boehner "injected a human element into the battle" when he argued that the family of border patrol agent Brian Terry "deserved answers about the guns that killed him."
Byron Tau, in Politico , reported that Carney "pushed back Thursday against the idea that the White House trying to cover-up Department of Justice documents relating to a gunrunning operation, saying that their invocation of executive privilege was a principled stand for executive branch independence." Carney was quoted as saying, "This is entirely about principle. We have been absolutely clear about the fact that this operation used a tactic that originated in a field office, that was flawed, that was wrong and had terrible consequences."
The Washington Post says the White House "suggested...that it would abandon negotiations over the release of documents related to the operation until GOP lawmakers stop trying to embarrass" the President, but Republicans "insisted that they are prepared to move forward with a contempt vote." The Post adds, "For Republicans, the move...risked overreaching in an investigation that has dragged on for months, and allowed the White House to portray them as partisan hacks determined to bring down Obama."
Rubio Calls On Holder To Resign The Hill reports that Sen. Chuck Grassley "said comments made by the White House claiming the administration has given Congress every document related to Fast and Furious are 'hogwash.'" The Hill also reports that Sens. Marco Rubio and Sen. Dan Coats "both called for Holder's resignation."
Pelosi Claims Republicans Are Targeting Holder To Suppress Voter Turnout Jake Sherman, in Politico , reported that House Minority Leader Nancy Pelosi "said Republicans are investigating Eric Holder because they want to distract him from stopping voter suppression laws." Pelosi said, "To frivolously use that really important vehicle to undermine the person who is assigned to stop the voter suppression in our country. I'm telling you, this is connected. It is no accident. It is a decision and it is as clear as can be."

Supreme Court's ACA Decision Unlikely To Be Revealed This Week The New York Times reports that the nation will likely have to wait until next week for a series of decisions to be handed down by the US Supreme Court, including the ruling on the Affordable Care Act. It is common practice that Chief Justice announce the last session on the next to last day, which did not happen on Thursday, meaning that this session will likely last until at least Wednesday or Thursday.
USA Today reports that the Supreme Court decision expected next week on healthcare reform will have effects on both young and old Americans throughout the country. Among the provisions that could be struck down are lifetime limits on medical benefits, insurance coverage for those will pre-existing conditions, and a provision that allows children to stay on their parent's coverage until age 26.
Boehner: "No Spiking Of The Football" The Hill reports House Speaker Boehner said in a memo to the Republican conference that here will be "no spiking of the ball" if the healthcare law is struck down in the next two weeks. Boehner added, "Republicans will not repeat the Democrats' mistakes...We won't rush to pass a massive bill the American people don't support." In a response to Boehner's memo, Democratic leadership issued a statement in response, saying "It is a sad day when Republicans continue to cheer against the health benefits Americans are already enjoying, while running out the clock on the economy and pursuing policies that are dangerous to a thriving middle class. No one, except perhaps House Republicans, actually believes they 'are focused on the economy."
The Washington Post reports Boehner said in a memo to Republicans, "We will not celebrate at a time when millions of our fellow Americans remain out of work, the national debt has exceeded the size of our nation's economy, health costs continue to rise, and small businesses are struggling to hire."

Campaign News

Romney's Previews Softer "Tone" On Immigration In Speech To Latino Group Mitt Romney's speech to the conference of the National Association of Latino Elected and Appointed Officials received great deal of coverage, including segments on NBC Nightly News and the CBS Evening News. Those reports, as well as print coverage this morning, describe the speech as an effort by Romney to distance himself from some of the harsher rhetoric on immigration issues he employed during the Republican primaries.
NBC Nightly News reported that Romney "gave a major speech on the sensitive topic of immigration" in which "shed the confrontational tone on illegal immigration he used to try to establish his conservative credentials during the Republican primary." NBC's Peter Alexander added that Romney "promised long-term immigration reform," but "offered few specifics...again sidestepping whether he would overturn the President's executive action stopping the deportation of some undocumented immigrants who came to the country as children." However, Romney "directly attacked the President, who will speak to the same group tomorrow."
Dean Reynolds, on the CBS Evening News, also said Romney's "tone was different than the one Romney used during the primaries when he was courting conservatives who favor a harder line on immigration than most Latinos." According to Reynolds, Romney's speech "lasted 17 minutes, was politely received and was devoted mostly to an attack on the President's economic record." Romney: "Hispanics have been hit disproportionately hard. While the national unemployment is still above 8% and has been for 40 straight months, Hispanic unemployment is at 11%."
Bloomberg News also says that "as he has throughout the campaign, Romney stressed that Hispanic households have been among the hardest hit by the struggling economy." According to Blomboerg, Romney "received tepid applause from his audience, getting some boos when he mentioned repealing the healthcare law Obama championed."
The AP also says Romney is "backing off the harsh rhetoric of the Republican primaries," and on Thursday, said he would "address illegal immigration 'in a civil but resolute manner.'" The AP notes Romney "outlined plans to overhaul the green card system for immigrants with families, and end immigration caps for their spouses and minor children." According to the AP, Romney "made only passing mention of his promise to complete a 2,000-mile border fence to help stem illegal immigration."
The New York Times , in an article titled "In Speech, Romney Takes Softer Tone On Immigration," says Romney "offered what he called a strategy for 'bipartisan and long-term immigration reform.'" The Times says Romney "dropped the confrontational tone he took on immigration during the Republican primary," and, "instead, he promised to work in a series of areas to help immigrants and their families while discouraging people from coming to the country illegally."
The Wall Street Journal , covers Romney's speech in a front-page article titled "Romney Softens Tone On Immigration." The Journal quotes Romney as saying, "I will prioritize measures that strengthen legal immigration and make it easier. And I will address the problem of illegal immigration in a civil but resolute manner." The Journal also reports that Sen. Marco Rubio, in a speech he gave Thursday, said, "What is important is that the Republican Party stop being identified as the anti-illegal-immigration party and start being the pro-legal immigration party."
According to USA Today , "Groups backing wider immigration or tighter controls said the policies he outlined omitted important issues and would do little to fix a system that is already complicated and broken."

Romney Up In Both Trackers The Gallup daily presidential tracking poll of 3,050 registered voters taken June 14-20 shows Mitt Romney leading President Obama 47%-45%, unchanged from the previous day.
Meanwhile, the Rasmussen Reports daily tracking poll of 1,500 likely voters taken June 18-20 shows Romney leading Obama 47%-43%. That's up from 47%-44% the previous day.
Obama Up 4 In Pew Poll However, a Pew Research survey of 1,563 registered voters taken June 7-17 shows Obama leading Romney 50%-46%.