going to figure this out? if steve is meeting with his north korean counterparts, they have to get it on the calendar. >> thank you. thank you for joining me and happy friday. inside politics with dana bash starts right now. >> welcome to inside politics. i'm dana bash. john king is off today. as we speak the president is meeting with congressional leaders about the government shut down. will this meeting be more productive than earlier this week. the latest jobs report shows a surge in hiring. good news for the trump economy. is it good news for his federal reserve chair? after a democratic congresswoman uses an expletive in calling for the president's impeachment, the newly elected speaker downplays it as a generational thing.

>> i don't want we should make a big deal of it. i really don't. that's why people talk around. i'm a grandmother and that's a different story, but words weigh a ton and the president has to realize that his words weigh a ton, too. >> we begin this hour at the white house on the 14th day of a partial government shut down. congestiressional leaders are meeting with the president in "the situation room" to try to find a path forward to funding the government and ending the stalema stalemate. expectations though could not be any lower. aides said zero progress is expected today. at the white house they are refusing to budge on the demands for a border wall. the vice president said if there is no wall, there is no deal. mitch mcconnell is throwing bashes at his democratic colleagues repeating he won't

touch anything if the president hasn't signalled he will sign it. >> the package presented by the house leaders yesterday can only be seen as a time wasting act of political posturing. making laws takes a signature. this shouldn't be taken lightly and viewed as an opportunity with the new house democratic majority to prioritize political performance as an art form ahead of the public interest. >> as for the democrats, they are not willing to move an inch either. nancy pelosi is coming to today's meeting as the newly minted house speaker. >> we are not doing a wall. does anybody have any doubt? we are not doing a wall. >> do you worry about backlash? >> it has nothing to do with politics. it has to do with a wall is immorality. it's an old way of thinking.

>> nancy pelosi speaking on capitol hill. she is now at the white house. that's where abby philipp is. abby, if nobody is willing to budge, what does the white house hope to achieve besides the ability to say they met? >> we are getting some indication of how the white house hope this is will all go down. part of it is that the message was clear. the president is not budging on the wall, but what we have heard in the last few minutes according to two sources is the white house is preparing for president trump to make another public appearance to make his case for the wall. probably in the rose garden they are preparing for after this meeting for the president to yet again make his case for the wall. the white house is preparing for an opportunity for the president to try to once again sway the public narrative around this government shut down that has nothing to do with whether or not progress is being made on a deal to end the shut down.

according to white house press secretary this morning, the president is not backing down and as you pointed out, nancy pelosi said maybe she might give the president a dollar for his border wall, but not willing to give much more than that. unless there is a dramatic breakthrough is likely more of the same where the two sides are not budging from their starting positions. we will see the democrats coming out to the mikes to speak to reporters after they speak with the president and potentially president trump speaking from the rose garden, trying to make his case yet again that the border wall is necessary. the white house has been putting out talking points, talking about how immigrants have been bringing crime and diseases across the border. they are doubling down on their starting position, but we are starting to see the president really for the first time in this shut down using the bully pulpit of the presidency to make his case. he did not go to florida because of the shut down because we

didn't see him at all during that time. beginning yesterday in the briefing room and potentially today, we will see president trump once again answering questions, a do-over from yesterday. he didn't do that in the press briefing room, but this could be just a pr exercise even as talks continue to stall. >> such good points including and especially the fact that he was in the white house over the holidays, but he might as well have been anywhere else because he didn't make the point in terms of the theatrics of it doing public events and they are learning that lesson by planning ahead before this meeting is happening and planning for probably not to have very many results to have those theatrics in the rose garden. thank you so much for that report. let's go to capitol hill. phil mattingly is standing by. what are you hearing, phil? >> if your bar which was low to

begin with is at least something is happening and people are meeting which was a far cry from where we were last week. we were wandering aimlessly with capitol police and progress is being made. just a follow-up. the reality when i talked about democrats and republicans is this needs more time. if you look at where democrat are, the house of representatives controlled by nancy pelosi passed through proposals to reopen the government. while mitch mcconnell made clear he is not going to take them up if the president doesn't support them, those will serve to pressure the rank and file members on the senate side and they are willing to give it time for the pressure to build abo. you saw cory gardner and susan collins say we want the shut down to end. you cana keep talking about a border wall or security, but we want it to end. not only are they both 2020 targets of democrats, but people who made clear before the border wall fight that they department

want any part of this to begin with. they are not reflecting where the conference is. republicans are not budging. they said it's the president's ball game and he needs to figure something out with democrats. democrats are content with where they are in the next hour or two. expectations are anything that's going to happen is not going to happen soon. given more time, we will see what the pain creates in terms of talks. >> they said on sunday state of the union and others have as well on the notion of putting daca into the mix. dreamers giving them the potential for legal status or path to citizenship as a larger deal to reopen the government. you are hearing it's a no go? >> it's just a non-starter at the moment. mitch mcconnell pitched the

president on this idea, but white house officials informed staff on capitol hill this is not something they are pursuing. democrats want no part of this. they have been led down this path before and republicans at the white house decided not to go in that direction. it's not on the table and we will see what happens. right now, no. >> thank you very much for the reporting. with me to share their reporting and insights. karen with "the washington post" and sirius xm. nancy cook with politico and npr. happy friday, everybody. >> let's just go off of what phil and abby were reporting. as we speak this meeting is taking place right now. you and i have covered a few

shutdowns. it's probably almost definitely unlikely there is going to be a lot of progress. when things are going on, they tend to be quiet. >> there is a lot unconventional starting with the awkward silence from the white house and no public messaging. that was unconventional and the fact that to try to find a little way and consensus and compromise. that was not happening. a lot was unconventional and we are sliding into that phase for the shut down with the exception of mitch mcconnell saying i'm not making my people vote until the president is locked in a course of action.

>> he has members who are publicly breaking. you have cory gardner with a change in 2020. you are losing control of your caucus is all the more reason. >> let me show our viewers what they are talking about. a couple of senators breaking with the president and the leadership on the shut down. susan collins up for reelection in 2020. i'm not saying the plan is a valid plan, but i see no reason why the bills are ready to go on which we achieved an agreement should be held hostage over border security. cory gardner is up for reelection also and was in charge of getting republicans elected in 2018. we should passe continuing resolution to get the government back open. the senate has done it in the last congress and we should do it again today. that's the political pressure. it's coming in part because of

pressure from real people. real human beings who are being negatively affected by it. let's show you one example of a furloughed worker and the anxiety she has going on. >> all those things are prebudgeted and you are not going to get your next check, what do i do? i have to make a choice between paying my utilities or going and buying groceries for the next two weeks. >> that can't be lost in all of this. you had 800,000 federal employees and contractors. when you talk about the possibility of this dragging out for months, that is a real impact on these people and on people's

pay your mortgage with money you get eventually. you need it now. >> they are cognizant of when federal workers get paid. that's next friday. they city privately. president trump just before we came on air, the white house released this very doubling down letter to congress filled with the slight presentation with many misleading statistics and that signals while aides around him may be aware of the impact on federal workers and the political cost to the white house, trump himself really seems to be doubling down. >> they under state the impact and they raise money and businesses and the problem of federal permits for certain industries. there is the problem of if you want to --

>> people who want to be married in d.c. >> and people who want to buy houses will find it difficult to get the w 2s reissued. there are all these other effects, not just the federal workforce. it's not just the people who work for uncle sam. >> there is a push to get the government back up and running and maybe which will get stuck for a while. they are saying let's separate out dhs and focus on the homeland security part and get everything else up and running for the end of the year. that's not working because frankly if you do that, you lose leverage. there is not more pain and not more to be gained for your side of the argument. this is a political slugfest and not so much a national moment of panic of getting things back up and running.

maybe we will see that. john cornyn who was in the leadership is no longer, but he is speaking for a lot of republicans when it comes to the messaging on this. >> now that she is back being the speaker, she has flexibility. the democratic leader in the senate is looking for her to take the lead on the negotiations. this deal has to be cut between nancy pelosi, chuck schumer and donald trump before senator mcconnell will bring it up on the senate floor and pass it. >> yet if you look at the headlines from some of the major publications including yours, mcconnell faces pressure from republicans. he keeps his head down and insists he has no particular role. he is a guy who knows how to get

a deal done. what's the point of your president in your own party won't negotiate. >> absolutely. you have seen that congressional leaders understand that they have to cut the deal directly with president donald trump. on wednesday i was at the white house and leaders came to the situation room for what was supposed to be a briefing that the white house wanted to give on immigration and what they are marketing as a crisis on the border. really pelosi and schumer kept interrupting top officials because they wanted to negotiate with trump. they see no point in negotiating with vice president mike pence with the new acting chief of staff, mick mulvaney. it's trump and them and otherwise there is no deal to be had. >> as we go to break, we wanted to show you snag got lost in the crush of news yesterday. orrin hatch who is still the longest serving republican

senator enjoying his first day of retirement and in classic orrin hatch fashion, he tweeted about his last day in the senate. >> may god bless the senate. may he bless the united states of america. with that, mr. president, i yield the floor. heyi'm craving somethingkin! we're missing. the ceramides in cerave. they help restore my natural barrier, so i can lock in moisture... and keep us protected. we've got to have each other's backs... and fronts. cerave. what your skin craves.

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give your family the security it needs at a price you can afford. when your son looks at you and said look, bullies don't win. i said they don't because we will go in there and impeach them on the floor. >> that was the congresswoman calling the president an expletive saying democrats are going to impeach him. the michigan lawmaker is not backing down.

she said i will always speak truth to power #unapologetically me. this is about all of us in the face of this constitutional crisis. we must rise. it's only day two of the house control. instead of potential impeachment drama. when asked, the new speaker had this to say. >> your reaction to that comment? >> i probably have a generational reaction to this. i'm not in the censorship business. i don't like that language. i wouldn't use that language. again, i don't establish any language standards for my colleagues, but i don't think it's anything worse than what the president has said. >> so i got everything up to

that last part comparing it to the president. it's one thing to say i'm not going to sensor my people and so on and so forth. for democrats, it's a very dangerous road to start to travel to compare what they are doing to what the president is doing in the same breath virtually of saying that the president's language, his approach, everything about him is unpresidential and completely not okay. as a role model and as a leader. you start to compare it, you put yourself in a dangerous condition. >> you lose the high ground basically. there is a difference in tone and message and everything you can start to argue about the specifics, but you lose the high ground when you throw it up like that. what language is vulgar.

that's what they maintain to make the argument about president trump. you have a bigger caucus and a younger caucus right now and a caucus that is more connected to social media than ever before. you are going to have difficulty keeping everybody in line if you are nancy pelosi. the republicans experienced this where they didn't care about what the leadership thought and the democrats face this as well. perhaps not as much as we thought. we saw most of the new people did decide to back pelosi for speaker. she is not just going to dutifully accept any more than she gets to police everything that gets put on instagram accounts. everybody is trying to set a tone. >> that's a good point that she does have a new reality and had to walk in and get the votes.

we have more established democrats in leadership positions who want to go further than the now speaker. listen to this. >> passions are running high. let's just leave it at that. we are in the middle or maybe towards the tail end of the investigation with robert mueller. what i would like to see happen is let that play out. >> i disagree with what she said. it is too early to talk about that intelligently. we have to follow the faxes act get the facts. >> that doesn't take us in the right direction. i would say it's inappropriate. >> this is something they are going to have to deal with. this balancing act. there is a lot of anger among democrats and among those on the

left and don't want democrats reaching across the aisle. there is a debate over do we want to take the high ground and go high especially with a president who is known for throwing low blows. how do you respond to that? it's almost a benefit for speaker pelosi now to have this fight over the shut down because she can show herself standing up to president trump in a very upright way and be very out there and saying i am standing up to him and not allowing him to do this and that would be a way to channel some of this anger. this is something they have to deal with. >> you mentioned republicans had to deal with this as the tea party emerged. kevin mccarthy had to deal with it and now the minority leader was asked about nancy pelosi's

reaction. he was surprised and then seemed to be angry. >> we watched him stand up and use this language and get cheered by their base and watched a brand-new speaker say nothing to her. that's not the body of what we serve. that action should not stand. somebody should stand up to it. she is the speaker. that individual serves at her caucus. if she wouldn't, others would. >> so kevin mccarthy is more upset about the expletive than impeachment? i want to differentiate between the two components. one is about setting the agenda. the other is express iing a lotf actions. democrats don't want to lose control and the rhetoric, they can't control. there are two components here.

>> the rhetoric does start to affect the agenda when you appeal to a public that is not millennial. >> the think the bigger headache for nancy pelosi is raising taxes to 60 or 70% to combat climate change. that's an agenda challenge and an easy way to drive off your base. >> you want to make sure that gets through above stuff that doesn't matter. it complicates things. >> you know who did? president trump. i want to read this. he said in a tweet they want to impeach me because they know they can't win in 2020. how do you impeach a president who won the best election of all time. the fact that he is tweeting this is a conversation for another day. the talk of impeachment is potentially good for republicans. stand by. another potential good piece of news for republicans.

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the december jobs report is way better economies were expecting. they added 312,000 jobs, well above predictions and paychecks are still on the rise. the economy remains strong despite turbulence. the chief business correspondent is here to break down the numbers. >> dana, a strong end to a strong year for job creation. 312,000 net new jobs created and you saw upward revisions in october and november. that is a strong finish for employers who have been hungry to hire workers in so many industries. the job market went up to 3.9%. why is that not a worry?

400,000 people came off the sidelines and were not looking for work and not counted in the labor market. they are hearing the headlines and stories of their friends getting jobs or better jobs and want to get back into the labor market. here's where the hiring is most robust. health care. strong hiring in health care every month. 38,000 jobs in construction. manufacturing 32,000. this is the december report. now we have a full look at what the year was like. 2.6 million new jobs in 2018. that's the best in a few years. better than the past couple of years. 2015 with 2.7 million. 2014 was a fantastic year, but this is a strong finish to a strong year for hiring. we saw wages above 3%. 3% growth for the end of the year.

3.2% in this number. it has taken a long time to consistently feel like they have a raise. dana? >> thanks, christine. today's numbers are welcome news on wall street. the dow is up 713 points. let's go to the stock exchange where allison monitoring the markets. allis allison? >> this is a market that really was craving good news. it got a trifekt cta overnight. china took steps to stimulate their economy and the jobs report blew away expectations. a round table with his predecessors. he said the magic words and the central bank will be patient with raising rates. boom, the market rocketed higher and that's why you see the dow up over 700 points. this is one of the big issues

rattling wall street and has been nervous about making a policy mistake in raising rate too quickly. this is an issue that they can put aside at least for a couple of days until something new comes along. there was an unusual and transparent moment in the round table discussion when the moderator asked if they had gotten phone calls or communication from the white house about how unhappy president trump is with some of powell's decision making. powell said no and the moderator asked this. listen. >> if the president asked you to resign, would do you it? >> no. >> that coming after the president used him as a pinata on twitter, making clear the president is not happy on the decision making on monetary policy. >> thank you very much for the good news report. appreciate it. up next, congress is only not

even 24 hours old, but already in the house people are gearing up for the next election cycle, running ads against democrat who is broke their promise not to vote for nancy pelosi as speaker. here's one democrat i spoke to during his campaign who kept his promise. >> no way, no how. you will not vote for nancy pelosi. >> that's right. i will not vote for nancy pelosi. (♪ )

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the republican senator from

kansas said he plans to retire for going to a difficult reelection bid. he announced his decision at the kansas farm bill to passage weeks ago. listen. >> i am announcing i will serve the remainder of this term as your senator, fighting for kansas in these troubled times. however i will not be a candidate in 2020 for a fifth senate term. >> and a gop source said the party is looking at recruiting kansas stative and susht secretary of state mike pompeo to run for the seat. no indication if he would be interested. topping other parts of politics hours after gaining control of the house, democrats filed a motion to intervene in an ongoing lawsuit aimed at ending obamacare. a federal judge ruled that the affordable care act is

unconstitutional since congress eliminated the individual mandate penalty. they are not defending obamacare so a coalition is appealing the judge's ruling. a gop-linked super pac launched a six-figure online ad campaign targeting democrats incluwho vo for nancy pelosi as speaker after they said they wanted new leadership while they were on the campaign trail. new york representative alexandria ocasio-cortez got booed by gop members when she voted for pelosi. she tweeted don't hate me because you ain't me. here's an ad. >> with his very first vote in congress, dean phillips caved and fell right in line, voting to support nancy pelosi for speaker. it takes most politicians years

to sell out, but he broke his bond on the very first day. >> president trump is facing major backlash for defending russia over the 1979 invasion of afghanistan. here is the head scratching comment he made during a cabinet meeting on wednesday. >> the reason russia was in afghanistan was because terrorists were going into russia. they were right to be there. the problem is it was a tough fight and literally they went bankrupt into being called russia again as opposed to the soviet union. >> where do we start? the u.s. strongly opposed the invasion backed by the guerilla insurgency and forced the soviets out and the "wall street journal" board put it this way. we cannot recall a more absurd misstatement of history by an

american president. the soviet union invaded with three divisions in december 1979 to prop up a fellow communist government. the soviet invasion was a defining event making clear to all serious people the reality of the communist threat. mr. trump's cracked history can't alter that reality. okay. it was a proxy war. >> it became a proxy war. it started as one. >> is he trying to mislead to prop up russia or putin or doesn't know his history? >> he is presenting the view from the other side of the fence. i lived here in russia and a lot of people think that way. we were pulled down because we had to fight the united states and it's outside and things that made russia fall apart and we wish for the good old days. i never heard them present things like that.

it's strange to hear the president speaking in a line of reasoning for why the soviet union broke up that had more to do with a screwed up system of organizing the country than just afghanist afghanistan. this is the first time. they are also complaining about a couple of different ones. >> i heard americans say that the proxy war with stinger missiles just negating the chief tactical advantage. let's be clear. the command control economy was sort of more central to the problem. >> well said, both of you. up next, the democratic jockeying is under way. the 2020 presidential race is here and new republican senator said it's way too soon. >> it's like everybody around here is focused on 2020 and the democrats running for president.

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elizabeth warren is making her first trip to iowa as a trip to 2020. she is exploring a white house bid. the massachusetts senator who has long positioned herself as a major adversary to president trump begins her three-day swing tonight. from there she will be making stops in soouz city, counssioux council bluffs, and des moines. nothing more important especially in iowa after warren iss issues this warning to her own

party earlier this week. >> this is going to be the fisher cut bait year for the democrats. is this going to be a primary that truly is a grass rights movement that is funded by the grass roots and done with grass roots volunteers or is this going to be one more play thing that billionaires can buy? >> take that, michael bloomberg and tom steyer. he said let's not divide here. we are not even out of the gate. let's take a breath. it was interesting. there is so much news with the shut down and everything else. the fact that she decided to come out on new year's eve and get ready of everybody. not just get ready, but call the field and start to insult her adversaries. she is taking direct aim at tom steyer and michael bloomberg and arguing that the democrats need

to put someone forward who has a better economic message that was part of hillary clinton's problem in 2016. she is taking aim at those people early. anyone who joins it will start to pay attention to the breath and depth of that field early on. >> you mentioned hillary clinton and about how she is taking meetings with people like elizabeth warren. kamala harris, cory booker and eric garcetti and more. is that just a kind of rite of passage or are they trying to actually get her endorsement? >> both. you have to go to the previous nomination and you have a lot of votes. go to her and maybe get lined up down the road. it's both. >> so others are after they had their family time, we still haven't heard from people who would make the decision during that family time. kamala harris and others.

terry mcauliffe was on anderson right now and wrote an op-ed and here's what he said. when the takes are another four years of trump degrading our country do we want to use this as an experiment, an idea liftic and unrealistic policies? also a political imperative for 2020. his experience matters. >> i think that's always going to be an argument when you have been in politics for a long time. >> that's a favorable argument to you and as we have seen, experience doesn't always win the day. you have to come with a bit more than that. i think it does seem like at this point people do want policies that go further than they have in the past. it doesn't seem like this is a moment when there is really an appetite for traditional. people want to have something to

be done about what's going on with the wages in this country and health care? those are things people want to be dealt with. >> we have a divided country and if there is anything that the last win showed, playing it safe doesn't always work. traditional doesn't always work. you have to break the mold. even the establishment democrat who is we know realized that and they try to reinvent themselves is hard to do. >> martin o'malley endorsed beto o'rourke. >> this got attention from the press. this is from a great journalist, an anchor at irish tv. the singing of irish-american martin o'malley wants another irish american democrat to run instead. >> that's a great perspective and great way to end this for the week. thank you for joining us. brianna keilar starts after a quick break. daddy diaper duty...

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omar, check this out. uh, yeah, i was calling to see if you do laser hair removal. for men. notice that my hips are off the ground. [ engine revving ] and then, i'm gonna pike my hips back into downward dog. [ rhythmic tapping ] hey, the rain stopped. -a bad day on the road still beats a good one off it. -tell me about that dental procedure again! -i can still taste it in my mouth! -progressive helps keep you out there. i'm brianna keilar live from washington headquarters under way right now. the shut down debacle continues with no deal in sight. some republicans breaking with the president. ear must haves required. why an r-rated declaration shows the impeachment conundrum for democrats.