now more businesses in more places can afford to dream gig. comcast, building america's largest gig-speed network. welcome to "inside politics." i'm john king. thank you for sharing a beyond surreal day with us. at least so far, anyway. it drops 4% but yet the public is staring at a blue wave. why? rudy giuliani didn't get his facts straight about the stormy daniels hush payment. the president also launched a sharp new attack against the special counsel, ask thnd then

to put to rest any talk that chief of staff john kelly is headed out the door. >> we have a great relationship. he's doing a great job as chief of staff. i could not be more happy. >> it's an absolute privilege to work for ta president that has gotten the economy going. we're about to have a breakthrough on north korea. the jobs report is great. it's nothing less than brilliant what's been accomplished in 15 months, i believe. >> we begin the hour confused. because that is where the president of the united states leaves us. he changed his story again on stormy daniels today, and then moments later he said he wasn't changing his story on stormy daniels. and he attacked the special counsel, too, leaving little doubt robert mueller will have to issue a subpoena if he wants to hear from the president in a controlled legal setting as opposed to whatever you want to call what we just heard at the white house and at joint base andrews.

let's start by dissecretating w we can about stormy daniels. remember, the president's attorney rudy giuliani stunned everyone by saying, yes, the president was aware of the hush money to stormy daniels, and the president paid him back by taking care of it. the former new york city mayor said he was setting the record straight with the president's blessing. today? well, never mind. >> rudy is a great guy but he just started a day ago. but he really has his heart into it, he's working hard, he's learning the subject matter, and he's going to be issuing a statement, too. he started yesterday. he'll get his facts straight. he's a great guy. >> let's start with jeff zeleny at the white house. jeff, am i right, you asked the president, how is rudy doing, and that's what followed?

>> reporter: that's right, john. the president shrugged his shoulder and then proceeded to throw him under the bus. it was really extraordinary. we were standing about, i would say, 10 feet or so from the president there, and he went on and on about rudy giuliani. yes, he said, he's a great guy. he said he started yesterday. he actually started about 15 days or so ago. a new member of the legal team here. but then proceeded to issue pretty much as sharp and damning words as you can say. he didn't have his facts straight. so he proceeded from there to not exactly say what those facts were. he said rudy giuliani would be issuing a statement. we've not yet seen that. then at joint base andrews after everyone flew there, he essentially doubled down and said he was not changing his story about stormy daniels. john, by the end of the day, it would be interesting to say. i wish i said my reporting could show an answer to what it's going to be. i don't know that, what the clarification to all of this will be. but we do know the president

wanting to send a signal that in his eyes, at least for today, john kelly, the white house chief of staff, who is often the one being thrown under the bus, he is up in the president's eyes, and rudy giuliani, who just yesterday was his favorite lawyer, he's down in his eyes. where this all stands from here? the president not wanting to sit down with bob mueller, said it won't be fair, and said "witch hunt" more times than i can count. john? >> not your fault, jeff, but that did not clear up the confusion. certainly not your fault. >> here with me to share their reporting and insights, malika henderson, michael bender with the "wall street journal" and cnn's kaitlyn collins. we're laughing about this because it is absurd in some ways. there are much more dramatic legal implications. rudy giuliani went on the other night and said, yes, the president was aware of the payment. he paid michael cohen back for

the payment. if that's the truth, michael cohen will say that in some legal setting. you might as well get out ahead of it. now the president comes out and says -- i should add the president tweeted three times yesterday backing up mayor giuliani's account. now he said giuliani didn't get his facts straight. what? >> so when giuliani did issue this statement, whatever the correction is the president says when he finally has his facts straight, what are we supposed to take from that? are we supposed to wait for that statement to be corrected tomorrow, because that's what we're getting from the president and rudy giuliani these days. we thought we could believe rudy giuliani on wednesday night. now the president says he doesn't have it correct. there is no one to believe because the story changes on a near hourly basis. >> remember what happened all day yesterday, which was the white house was -- you know, as reported, going to them and saying, explain this, explain

what rudy said, explain what the truth is. they kept referring back to rudy's appearances. sarah sanders, how many times did she say, when we asked her for questions yesterday -- >> because she wasn't in the loop. this was a deal hatched between the president and rudy and the president is apparently rehashing it. >> if he got his facts messed up, why didn't he go to sarah sanders then? >> because by doing this, they may have exposed the president to an fcc violation. or if he essentially owed michael cohen money for legal services, it's supposed to be on his financial disclosure form. i thought yesterday, i was in indiana covering the senate primary, i thought, okay, there is some bigger goal they're trying to achieve.

apparently not? >> one thing you do know is the president watches a lot of tv. he's watching tv yesterday, even fox news, the rollout and strategy supposedly hatched by the president, and the reviews were terrible. laura ingram was like, this is a problem. neal knee neil caputo said he is muddying the waters. reviews from friends and foe alike were not good in terms of the political aspects or the legal aspects. >> rudy giuliani made this news stunning to the president's other lawyers. he did this apparently with the president's blessing but now the president is trying to unhash it. listen to neil caputo. this is normally a safe haven for the president of the united states, and even on fox news,

they said, mr. president, we can't believe you. >> so let me be clear, mr. president. how can you drain the swamp if you're the one who keeps muddying the waters. you didn't know about that $130,000 payment to a porn star. i think you did. i'm not saying you're a liar, you're busy, i'm just having a devil of a time figuring out which news are fake. let's just say your own stories give me lots of pause. your base probably might not care, but you should. i guess you're too busy draining the swamp to stop and smell the stink you're creating. that's your doing. that's your stake. >> amen. amen. that is sad. sometimes i go after fox news when the president says down, and he's clearly up, he says left and it's clearly right. what the president is doing here, i don't know the goal. on air force i he says he didn't

know about the payment. rudy giuliani goes on tv and says he knew everything about the payment and he paid cohen for it. he lied on air force i, the symbol of everyone's democracy, and he lied. i assumed that was done for a reason. sometimes that happens. i worked for the clinton white house. they had to do that on occasion. i thought it was being done for a reason. >> i think that's kind of the reaction again today inside the white house is that there isn't a lot of response to clarify what statement this is going to be, what the topic is, so some of the confusion we saw from the podium yesterday in the white house, that hasn't been resolved 24 hours later, which is telling in itself. i think there is some confusion. that confusion continues with mr. trump's own team, and this is at a time when we have rapid developments in the stormy daniels case, right? there are -- this summit is decided, right?

the president said today that he has a date and time, pretty high stakes meeting there, and the mueller investigation. this is a moment of real consequence in the presidency. at the same time, we see a lot of confusion more than usual within his own cabinet. >> and kellyanne conway making her way up the driveway today. there are both political and legal reasons why this answer is important. >> kellyanne, when did you first learn that the president had reimbursed michael cohen for that payment made to stormy daniels? >> i have no comment on that. >> did you know about it before sarah? >> i never knew about it. i was a campaign manager. >> did you know about it last year in the white house? >> i did not. >> did the president make a payment? >> the president sent out three tweets about it. >> is the president very honest? >> he's very honest.

>> the president is not honest about these things, he's not transparent about these things. but kellyanne conway, in her defense, she was the campaign manager. if this stuff was going on deliberately to help the campaign, she is liable in the campaign for the reports being filed. >>. >> that was me questioning her about it. i didn't ask if she was responsible in the campaign. she did say she wasn't going to comment on it. she said, i didn't know about it during the campaign, definitely distancing herself. we're seeing that from everyone in the white house. staffers saying they were in the dark. but we see it is all coming from the president himself. he spoke with rudy before that interview on sean hannity. he spoke with him after. rudy said the president was not upset about anything he said, and then today the president comes out and says, well, he just got started. he was hired two weeks ago. he doesn't know all the facts,

he's still learning the subject matter. all this confusion is being blamed at people outside the white house like rudy giuliani, but it is coming from the president. >> we're waiting, mr. mayor, for your statement. the president says you have to clear this up for us once and for all. i'm sure that's coming sometime today. a quick break. when we come back, the with tprt also went after the special counsel today. we'll have that in just a minute. if you have medicare parts a and b and want more coverage, guess what? you could apply for a medicare supplement insurance plan whenever you want.

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talk to your doctor, and call 844-234-2424. . welcome back. a political attack from the president this morning outside the white house, but then a short time later, sharp legal questions from a federal judge in the court case against the former campaign chairman paul manafort.

the judge questioning the authority whether the special counsel was in a broad overreach of his mandate trying to press this. shimon, how significant was this? >> reporter: a pretty stunning development here in that the judge really challenging the special counsel, the prosecutors there today. this was a hearing brought by paul manafort's attorney seeking to dismiss some of these charges, and really stunning words from the prosecutor here, judge ellis. he is known to be somewhat conservative in the eastern district of virginia. and let me just tell you, get right to what he said here. here's how it went. basically the judge, in response to something the prosecutor had said, told him, you don't really care about mr. manafort's bank fraud case. bank fraud prosecutors basically saying the prosecutors were interested in manafort because of what he could provide that

would lead potentially to trump's prosecution or impeachment. that's what you're really interested in, the judge said to the prosecutor, and then he went on to really say -- kind of review what manafort's attorneys have been arguing all along in that this case had nothing to do with collusion or russian interference in the election. and here's what the judge had to say about that. and this was also in response to an argument from the prosecutor. and the judge said none of that information has to do with information related to russian government coordination and the campaign of donald trump. now, john, as you know, manafort's attorneys have been arguing this point since this case was brought, saying that this had nothing to do with the russia investigation, that this was an overreach by the special counsel, but of course we know that the special counsel was granted permission by the department of justice, by rod rosenstein in that memo. all of this does not give us any

indication on how the judge is going to rule. but certainly from a political perspective, these are some choice and interesting words from the judge who just said this a short time ago in court in the eastern district of virginia. >> i suspect we'll be hearing them soon, the judge being quoted by the president's political allies . to make that point, shimon prokupecz. i want to read one more quote about this judge. we don't want anyone in this country with unfettered power. it's unlikely you're going to persuade me the special prosecutor has power to do anything he or she wants. does this make bob mueller possibly move the investigation faster? >> as shimon reported on august

2nd, the justice department gave mueller this expanded area when he said, what do you want me to do with this case? and now he's saying, why did you give this case to mueller when it seems tied to the russia investigation? you should have given that to new york. it has political sort of legs, but i don't think it has legal legs unless the judge says that rosenstein lacked the authority under the regulations to expand mueller's mandate. so i think it was not a good day from a political optic standpoint, but i'm not sure the judge has legal standing to dismiss the indictment on the basis of his sort of political belief that prosecutors need to be closely tethered to a mandate more so than mueller seems to be, in his estimation.

>> let me ask you quickly on another issue but it's related. the president made it pretty clear today he's not going in voluntarily to talk to the special counsel. if you're robert mueller, i know you're pursuing a legal investigation, and there's credibili credibility. however, this is the president of the united states. if there is possibly going to be a subpoena, should he get at that business sooner rather than later? >> i think it's not foregone, john, that they're not going to reach some agreement on a voluntary interview. i believe the lawyers representing trump -- not giuliani, the real lawyers representing trump realize the law favors the interview. the grand jury probably would be upheld. they may still try hard, flood

and the two raskins attorneys. >> we previously talked about rudy giuliani. the president says he's going to issue a new statement. he confirmed he would be issuing a new statement. it's a question of misinterpretation. of the president, he says, he loves me. it doesn't clear anything up. which may be the strategy, to keep things confusedme. i'm not so sure. none of us are in the courtroom, so we have to be careful. but a federal judge saying, i'm a little worried. you guys are using your power in being overzealous of mr. manafort, hoping you can flip

him. you want judges answering these tough questions? are you sure we're doing the right thing here? can you sure you're not using your power as a level against mr. manafort. it does show you, though, that mueller has to produce, right? >> yeah, and i think at the very least, you sort of hinted at this before, we're going to see this from the president's allies, not trump itself. this is the president as good as saying no collusion. he's brought it up a couple of times. i do think that as much as the confusion giuliani has sewn around a number of issues the past few days, it does seem that one strategy he has is to undermine the mueller investigation, which has been trump's desire for a while. but what he's done is using the north korea summit. >> i've got work to do. >> he is a guy that basically

all but won the nobel peace pri prize. and a little from sarah yesterday at the podium. >> and the public started. he's more skeptical of mueller. you heard him do that today when he talked about mueller being a democrat and worked for obama for 18 years, and why would he go in and sit down and talk to angry democrats who is throwing mud on everybody. >> bob mueller is republican and he was not in the obama administration for four years, and he was also in the bush

administration four years before that. >> there are some people on robert mueller's staff who are registered democrats. there are a couple who were going to go to the hillary clinton, quote, unquote, victory celebration. those are facts but they're also career and public servants who have the right to their lives outside of government. the president uses this. if you can prove that they're biase biased. the clintons did many. doing a public opinion strategy while the race was marking forward sl they're going to push back against a very powerful

special counsel. for all the public relations that he did and for all the legal power he had, he still had to face the legal power and he still got impeached. we shouldn't treat this as something radically new, and we should look to history to see where this is probably headed. >> as this all plays out, and we're waiting for the clarification on the stormy daniels matter from rudy giuliani -- you heard jeff zeleny say he's not positive the president has made the final decision on meeting with his kid. >> let me be clear. the constitution is on the other side. embrace it. use it. take the information from the department of justice. take your time. get it to the supreme court.

show the supreme court the kind of questions mueller want to ask. he needs to protect not only himself but the. . >> i think the. they don't want the president going anywhere near this special counsel. that strategy there is to make the political argument, to focus on the political strategy here. the bannon strategy to create a chaos on purpose in order to continue to muddy the waters. one problem with that is what's happening in new york with michael cohen, please. that is so much of a

constitutional crisis that the president can create on national television nbc. >> and just in times for the mueller -- the more they muddy the waters and change their stories, the more avanetti has nothing and change their stories. because the president is talking about this on a day the employment rate went up, so why isn't the president happy?

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years. >> i thought the jobs before was very good. the big thing to me was cracking 4. that hasn't been done in a long time. you'll tell me how long. but it hasn't been done in a long time. we're full employment. we're doing great. >> the politics of the jobs report in just a moment. first, though, christine roman is here to break down the numbers. >> reporter: john, the big headline here, 3.9% unemployment. you have not seen a jobless rate below 4% since december 2000, so that marks a new milestone in what has been an aggressive job recovery here. when you look, john, at where the jobs are, 164,000 net new jobs. you've still got about 2.7 million jobs created in the 14 to 15 months of this presidency. where are the sectors here? business services, strong there. health care.

you've got low wage and high wage jobs in health care of the we' -- health care. you've got manufacturing. 6 toint 6.2% on wage growth. you're hearing companies say they can't find workers or qualified workers, but you haven't seen the wages pop yet. maybe that comes next. john? >> we'll keep an eye on that, christine roman. lower than barack obama ever had, lower than george bush ever had. the president talking about it. you would think he would be happy about it, and he is. 4% is broken, and then he adds, in the meantime witch hunt! why, why, why?

republicans who are trying to hold the house majority, keep the senate. this is a birthday gift to them. the tax cuts are working, the economy is humming along. they don't want to talk witch hunt. they want to talk economy, economy, economy. why won't the president help them? >> because he wants to use this for his own benefit. things are going well but people are trying to attack me even though it made america great again, right? and we saw him do a similar thing a couple weeks ago. he used the economy to help justify his change on immigration position and whether or not he's going to be letting more guest workers in the country. because it's fundamentally about donald trump and it's not -- >> there's very few people around this president who helps him see beyond the bubble that he lives in, right, both the white house bubble but also the fox news sort of breitbart kind of bubble. if that's what you see and that's what you think america is thinking about and listening to and all of that, that's the kind

of tweet wuyou want. >> to your point, 123 tweets in the last week. 23 on russia, 10 on attacks on journalists, 6 on fox promos, four on immigration, four on jobs and the economy. it's still early. we're still in the primary season. this is the chamber of commerce trying to spend a boatload of money going into the primary saying, the president is getting better. 90% of american wage earners are seeing better take-home pay. with don in congress, nebraska is bringing home the bacon and you can never have too much bacon. >> this is true.

you give those numbers there. six to promote fox and four to promote the economy. we'll see what he does when he goes on the road. at some point he's going to be going out in some of these difficult senate races and house races and we'll see what the bulk of his speech is. >> normally republican groups are spent -- republican-aligned groups are spending money to come back to democrats, to contest what the democrats are saying. republican groups are being forced to spend money to try to drown out the president. >> and to make the case that the tax cut is actually working. you feel it, america. don't you? >> it's a friendly audience, whatever. i guarantee he talks about a lot of the stuff we're talking about. >> i don't know any candidates who wanted donald trump to come to their district and he's

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topping our political radar today, president trump denying a "new york times" report saying he's asking the pentagon for option to see reduce american troop levels in south korea. he also talked about the fate of three americans detained in north korea just weeks before he holds a landmark meeting with north korean leader kim jong-un. >> we're doing very well with the hostages. we're in constant contact with the leadership. we are in constant contact with north korea.

we've actually worked out a time and a place, which will be announced shortly. >> where? >> very soon. >> also on the president's plate, suggesting ways to boost election security. he met with top officials yesterday to talk about ways to protect the ballot boxes from foreign influence. russia again trying to interfere in this year's foreign elections. among other things, propaganda much like there was in the 2016 race. john mccain reading excerpts from his latest book "the restless wave" which will be released later this month. in it the 81-year-old senator talks about his battle with brain cancer and his own mortality. >> i don't know how much longer i'll be here. maybe i'll have another five years. maybe with the advances on oncology they'll find new treatments for my cancer that will extend my life. maybe i'll be gone before you hear this.

my predicament is, well, rather unpredictable. but i'm prepared for either contingency, or at least i'm getting prepared. i have some things i'd like to take care of first, some work that needs finishing and some people i need to see. and i want to talk to my fellow americans a little more if i may. i want to urge americans for as long as i can to remember that this shared devotion to human rights is our truest heritage and our most important loyalty. >> it's moving listening to that in the sense, number one, i want to speak to my fellow americans more, but i wonder if i'll be here when you hear this. >> hearing this, you get a sense of how much he's missed in washington, talking about human rights. in some ways very uplifting about america, and uplifting about wanting to remain here and not wanting to die. very hard to listen to.

>> ybarbara bush, george w. bus saying the generations are sadly left with just human voices. epa chief scott pruitt has allegations mounting against him by the hour. does he still have the support of the president? you wouldn't accept an incomplete job

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himself $20,000. overseas trips, and this doozy from the atlantic. they have been shopping trump stories from another cabinet member, ryan zinke, to try to deflect attention from his boss' bad behavior. i mean, come on. >> this guy has like nine lives. none of these scandals will make him get rid of him. >> for those of you watching at home who want to support either pruitt or the president, close your eyes for now. if hillary clinton were president and the epa had 11 investigations, daily headlines and the republicans are crickets on this, a handful of people say it's time to answer questions. really? >> these headlines, these accusations that would drive any other president nuts, and it drives the white house staff

nuts, hasn't reached that level inside the oval office yet. >> because donors like the work he's doing. >> donors, and i think trump friends, too, who are feeling the effects immediately, right, of some of the changes that pruitt is making and relay those thoughts to trump, and -- >> it's not the only example but it makes the drain the swamp thing just beyond laughable. i'm sorry, beyond laughable. >> i think also what has saved pruitt up till now is this sense of he is accomplishing more than any other cabinet member agenda, but i think that is even beginning to fray around the edges where you begin to think, first of all, will any investigations hamper any future efforts where he can promote the doj effort, and is he sort of making the stakes along the way that will undermine what there is already? >> only in donald trump's america. in the last week, a member of

pruitt's press team has been shopping negative stories about zinke to multiple outlets. the stories were shopped with the intention of taking the heat off of pruitt. >> i can't help but think that what's going on with pruitt is going on with ronny jackson. if i'm donald trump, why am i going to remove this guy who has a similar scandal? >> planning your overseas trips? >> i don't know what that tactic is, because as we've seen with this cabinet, there can be multiple people under fire at once. that's happened several times in this news cycle. >> all right. we'll see what tomorrow brings. coming up, the president is on his way to dallas to speak to the nra convention just two

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president trump expected to land any moment in dallas. he's headed for the annual nra convention and will be speaking in the next hour. last year remember the president addressed the convention and said, i will always have your back. >> you came through for me and i am going to come through for you. you have a true friend and champion in the white house as your president. i will never, ever infringe on the right of the people to keep and bear arms. never, ever. >> this year, though, remember after the parkland, florida shooting, it sounded like the president might be wavering. >> they do have great power, i agree with it. they have great power over you people. they have less power over me. some of you people are petrified of the nra. you can't be petrified.

they want to do what's right. it doesn't make sense that i have to wait until i'm 21 to get a handgun but i can get this weapon at 18. take the guns first, go through due process second. >> the president, though, then backing away from that. at one point he talked about congress raising the age limit. he didn't do that. now he's on his way on air force i. he said it's a great association and we have a record crowd. >> you remember why he backed down from all of those things. it was after meeting in the oval office at 9:00 at night with the head of the nra and its chief lobbyist. the truth is he feels very comfortable and he will feel very comfortable gettiiving tha speech. the organization spent $30 million to back his campaign. i think it's highly unlikely that he does anything to get on their bad side. >> nobody is going to bring up

that due process comment, which was stunning. if a democratic president had made that comment, republicans would still be talking about it to this day, hammering him for that. the president makes this comment, brushing off due process like it's nothing, and nothing more is said about it a week later. >> and trump's promise to make school safety a priority, that's going to be the priority of his administration. >> does he make reference to that? does he talk about having teachers carry guns in schools? >> it will be interesting to see, because a number of states have taken steps, including florida. rick scott defends the nra. he's a senate candidate down there. you'll see if the nra is willing to support governor scott in the middle of his campaign. the president speaking to the nra in the next hour. you don't want to miss that. i hope you'll get up early sunday morning, 8:00 a.m. eastern. wolf blitzer starts right now.

i'm engine sciutto in for wolf blitzer. thanks so much for joining us. he'll get his fact straight. president trump seemingly throwing his new lawyer right under the bus and claiming he has not changed his story on that payoff to stormy daniels. nobody wants to speak to the special counsel more than me. the president saying he is game to talk to robert mueller, but only, he says, if he's treated fairly. and the date and location are now set. trump says the high stakes summit with kim jong-un is in the books, teasing that details are imminent. trump expected to speak this hour at the annual nra convention in dallas. he's called for new gun safety measures in the wake of a shooting in parkland, florida. we haven't heard so much about that lately. we'll see where that ends up today. before