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good morning, everyone, and welcome to your "new day." i'm amara walker. >> and i'm phil mattingly. and today all eyes are on capitol hill after days of deal-making. democrats get ready to vote on a critical part of president biden's economic agenagenda. we'll tell you what's in the bill and what it means for millions of americans. >> plus it was a week of twists and turns in the courtroom. now a jury has ordered conspiracy theorist alex jones to pay up to the parents of a sandy hook shooting victim. and war of words. tensions heat up between the u.s. and china after nancy pelosi's trip to taiwan. antony blinken's warning it could have major consequences.

good morning and welcome to your "new day." it's august 6th. amara, we did it last hour. i'll do it again because we're not sitting next to each other. what's the status? three of the four kids are awake. we're on track to an early start. >> i have access to all the cameras, and i am doing my best not to check because i don't want to get involved, you know? i don't want to get involved. i don't know. that's the answer. >> they'll be there when you get home. your husband's got it until you get home. >> exactly. he's holding it down. a lot of news to get to. up first, the biden agenda facing a crucial test on capitol hill. the vote progress says is set to begin on the senate economic and climate bill. the bill has the support of democratic senator kyrsten sinema who demanded several changes to the tax provisions. sinema's support is essential as they passed the bill under a

convoluted procedural process which allows passage with a simple majority. >> here's a snapshot of what's in the legislation. it includes $369 billion to combat climate change. it gives medicare the ability to negotiate some drug prices, caps medicare out-of-pocket costs at $2,000 and extended the affordable care act subsidies for three years. >> melanie zanona joins us with more. can you update us on where things stand right now? >> yeah. so the timing of all of this is still very much in flux. we're waiting for a final ruling from the senate par liamentaria to see whether this passes budget rules and whether they can pass it strictly along party lines. we did learn this morning a piece of the package, the clean energy portion of the package

does comply with the bill, but we're still waiting on key rulings on prescriptions and the drug bill. once we get that, we're expecting the senate to move to the first procedural vote. then there's a maximum of 20 hours of debate. again, it's really unclear how long that process will take. once that happens, then they will move to the unlimited amendment process known as the vote-a-rama. there's no time limit on that. any senator can offer amendments. this is where the other side tries to craft politically difficult votes. things could get interesting. the hope is they're going to be able to push this bill over the finer line by the end of the weekend, teaming up the package on friday. >> mel, i going to try to pivot away from where the strategic nerds left it. there was white smoke as to where kyrsten sinema stood on everything. what did negotiators actually do to get her in line with the

bill? >> yeah. so she was the last remaining democratic holdout. what they did was offer her a number of concessions. they agreed to move the carry provision, increased the drought provision, and also added a 1% excise tax on stock buybacks. with that the final bill has taken shape and includes a historic investment of climate change. as you mentioned, $369 billion. going to cap out-of-pocket prescription drug prices at $2,000, and it's going to expand these expiring obamacare subsidies that were expected to expire this fall. that was a huge priority for democrats. it's important they did have to scale back their submissions a lot from where they started. but this is still a huge victory and it could be on joe biden's desk by the end of next week. >> i hope you have coffee,

protein bars, whatever you need. we'll have to send some up there. it's going to be a long couple of days ahead at chapitol hill. jobs were added in july defying fears the economy had entered into recession. >> we're almost at 10 million jobs. almost 10 million jobs since i took office. that's the fastest job growth in history. today there are more people working in america than before the pandemic began. in fact, there are more people working in america than at any point in american history. >> cnn's matt egan breaks down those numbers. >> amara and phil, the american economy just hit a huge milestone, one that should quiet those recession fears, for now at least. in a huge surprise, hiring ramped up to 28,000 jobs in july. not only has that doubled the

sentiment, it's 200,000 jobs stronger than even the modest forecaster was predicting. payrolls have now returned to their february 2020 levels. that means all jobs lost to covid have now been recovered. a the unemployment rate has dropped to below 3.5%. to get a lower figure, you have to go back to when richard nixon was in the white house. this understood cuts the argument that the u.s. economy is already in recession. economies that are in recession don't add half a million jobs in a single month. that doesn't mean there aren't obstacles ahead. remember, the economy doesn't have a jobs problem. it has an inflation problem. and there's nothing about the july jobs report. in fact, this unexpected surge of hire willing only make it harder for the federal reserve to tame inflation. the fed has been trying to slow the jobs market down to a more

sustainable pace. instead, the exact opposite has happened. amara and phil, all of this suggests the fed may need to continue to aggressively raise interest rates in the month ahead, and the more the fed does, the greater the risk it's vend yuli slows the economy into a recession. >> joining us now is the president of the policy institute and she served as the chief economist in president obama's administration. heidi, i want to start with where matt kind of finished. i think this is one of the big questions right now given the dynamics. i think they're a little fluid where democrats are pushing back on how aggressive the fed has been. you saw the market response to a wow jobs report is. there a new sense this is going to put new pressure on the fed to be as aggressive or more aggressive in the next few meetings? >> i hope not. one piece of good news is that the fed is not going to meet

again until september. we'll get more data when they meet again. it's good news that the fed isn't saying meeting tomorrow because then the very strong jobs report may have had more influence than i think it should. we did get a really strong jobs report, but the world trends are toward, we're seeing slowly. there was an acceleration of wage growth in july. but if you look over the course of 2022, we see wage growth moderate. so it -- even though this jobs report was very strong, it does show signs that we are seeing some moderation if you dig in with one more layer. i think it's good that the fed isn't meeting until september. we'll get more data reads before that to get a clear picture of what they need to move forward

aforward, and what i think they'll see third quarter do not need to take additional aggressive reaction to slow the economy down. >> can i ask, you know, wu of the things, we hear a lot about steady and stable growth, the transition they expected over the course of the next few months away from the really robust gangbusters job growth t recovery into kind of a different phase. when you looked at this report, when you dig into the numbers when you got the bls release, what were you seeing in terms of whether or not it was below the top line, and how do you explain it right now? >> this gets a little bit wonky. but one thing that's true, you look at the first friday of every month. there's two surveys that come up. there's the establishment survey where the bureau labor of statistics ask businesses how many people you do have on payroll. that's a huge survey. that's the one we put a lot of stake in month to month. then there's another survey,

household survey, where they ask individuals are you working. if you're not working or you're looking for work, those kinds of questions, that's where we get the unemployment rate from, that's a smaller survey. we get an employment measure out of both. and it's the establishment survey that we put more stake in showing these very strong jobs numbers. one rule of thumb, however, is that during inflection points in the economy when things may be going from really strong growth to slowing down like i believe we're in right now, the establishment survey sometimes can be less reliable. so in times like this, you want to put more weight on that household survey, and that household survey really shows moderating employment growth. so i think that the whole picture is strong grourkt but likely moderated. >> so, you know, one of the

questions -- look, it's been a very odd semantic debate about what the meaning of a recession is. the nbr hasn't weighed nyet, so we don't actually have a true ruling on this issue. what's your sense? you've got fed officials and recession seems inevitable or likely. wall street has pushed up their expectations for one right now. the report is confusing. it's a very weird economy right now. what's your sense on how the next six to 12 months play out? >> there's very little doubt in my mind we're not in a recession right now. the jobs numbers right now really underscored that. but the real question is whether we're going to move into a recession in the coming months. i think we are undoubtedly going to see substantial moderation. we already see some signs of that in the data that are coming out, and it remains an open

question whether the fed's aggressive moves have already secured a recession in the coming months. i hope that that is not the case, but that is -- you know, that's something that's on the table given how aggressively they have moved. >> yeah. soft landing sounds great in theory, a little bit harder in practice. heidi cher hose, i really appreciate your expertise. thank you so much. >> indiana has become the first state to pass an abortion ban sinlds roe v. wade was overturned. the bill will offer exceptions for some abortions for babies in fetal distress or in some assaults of rape and incest. protesters filled the hall owes of indiana's state capitol as lawmakers voted on the measure. the new law goes into effect on september 15th. still to come this morning, tensions at a tipping point

between the u.s. and china as an official warns taiwan could push china into a war with the u.s. we'll have the reaction from secretary of state antony blinken. appalachian history washed away. we'll look at what they preserved as eastern kentucky braces for even more rain. health and wellness, only the sleep number 36360 smt bed keeps you cool, then senses and effortlesslyly adjusts for your best sleep. t tells yu exactly how well you slept with your sleepiq score.e. our smart sleepers get 28 minutes more restful sleep per night. so, you can be your best for yourself and those you care about most. don't miss our weekend special. save 50% on the sleep number 360 limited edition smart bed. ends monday. (woman vo) sailing a great river past extraordinary landscapes into the heart of iconic cities is a journey for the curious traveler, one that many have yet t discover.

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china is pushing back after house speaker nancy pelosi made a stop in taiwan on her trip to asia this week. >> the china foreign minister issued new sanctions against pelosi and china has halted cooperation with the u.s. on a variety of key issues including climate change. secretary of state antony blinken is calling those actions irresponsible. >> we have the latest on the tensions from beijing. >> reporter: rockets from taiwan

launched toward the taiwan strait. beijing ramp us up its intimidation over taiwan after nancy pelosi's visit. china said it's staging a brock aid around the island. on thursday, chinese state media reported missiles flew over taiwan for the first time before falling into nearby waters. beijing then announced it's suspending cooperation with the u.s. on key issues, including talks between defense leaders and coordination over immigration, international crime, illegal drugs, and climate talks. >> china is lobbing missiles all around taiwan. they've decided that they're going to cut off communications with the u.s., which just adds to the possibility of a miscommunication buy either side. >> reporter: the u.s. and china are blaming each other. >> china has chosen to overreact and use speaker pelosi's visit as a pretext to increase provocative military activity. there is no justification for

this extreme, disproportionate, and escalatory military response. >> reporter: some jumped out to accuse china of overreact. if they really worried about peace and stability, why didn't they send out earlier from sending pelosi to pay the provocative visit to taiwan. >> reporter: they sent rocket jets across the taiwan strait. they were excited to get so close to the island. >> translator: when i overlook the coastline of the taiwan island, my determination to safeguard the territorial integrity of the motherland became more firm. >> reporter: all of this rage just over a two-day visit. pelosi's presence in taiwan, a slap in the face to beijing, which insists the self-governed island is a rebel chinese province. pelosi is out of taiwan but left a crisis behind her.

many fear beijing's retaliation is just getting start sthood that was selina wang with that report. heightened tensions in the region. as the justice department's criminal probe into january 6th focuses on president trump's west wing, cnn has learned his legal team is in direct talks with the doj officials. >> cnn's jessica schneider takes a closer look at cloaking conversations behind executive privilege. >> reporter: pressure continues to build on the justice department to charge trump. at the same time prosecutors have ramped up their investigation in recent days with subpoenas to several former white house top officials all while cnn has officially learned trump's legal team is in talked with doj officials about trump wanting to shield his talks with investigators. >> i think he's guilty of the

most dirlereliction of duty. >> we're going to continue to follow the facts. i think the department of justice will do that. they'll have to look at it, understanding what it means if the facts and evidence are there and they decide not to prosecute, how do we then call ourselves a nation of laws. >> reporter: the attorney general has refused to divulge what prosecutors are planning. >> no person is above the law in this country. >> even a former president. >> maybe i'll say that again. no person is above the law in this country. i can't say it any more clearly than that. >> reporter: sources tell cnn, trump's legal defense team warned him indictments are possible. while the former president has grilled his attorneys about whether they actually believe he will face formal charges. trump's lawyers have even advised him to cut off ties with his former chief of staff mark meadows, who's denied a subpoena

from the january 6th committee. sources also tell cnn the justice department is priming for a fight over executive privilege, which if they win could open the door to revealing testimony from trump's top aides. >> can the doj pierce that privilege by saying and perhaps going to court to get a ruling that donald trump's -- the conversations are misconduct and, therefore, not shielded by executive privilege. >> reporter: trump's spokesperson firing back that they'll fiercely fight any moves to strike down his executive privilege claims. how can the future president have private discussions with his advisers if any such adviser is forced either during or after the presidency in front of an unselect committee or other entity and be forced to reveal those privileged confidential discussions. >> that was our jessica

schneider reporting. >> a quick programming note, watch this week's episode "patago"pat goen ya cl "patagonia: life on the edge of the world" tomorrow at 9:00. here's a preview . >> patagonia's forests are magical places. here age-old relationships between animals, people, and trees still survive. these bonds are needed like never before as these ancient forests face unprecedented

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going through. can you first start out with the damage you understand happened at the apple shot and what the recovery efforts will look like? >> yeah. i think full recovery is going to take a long time. we just gained access to the building a couple of days ago, and so we're just beginning serious restoration recovery efforts, prioritizing the archival material as they're still sitting in the muck. based on the waterlines in the building, we have a 6'4" employee, and it was about an inch above his head. average 6'5" throughout the building. 15.9 was the highest recorded back in 1957. we were prepared for flooding, but not above seven feet above historic levels it. was an incredible amount of rain. >> it seems unimaginable. i have to ask what was salvaged

if anything, and before you go into, that could you talk a little bit about apple shop for those of us who are not familiar with it. this is a cultural center that's been around for 50-plus years, and it's really given kentuckians a voice because it chronicles the history of appalachia and some of the painful history as well. >> yeah, yeah. i think you described it very well. it started in 1969 as part of the war on poverty, and the idea was to give some young folks in different parts of the country cameras. in 1969 television equipment, camera equipment was the most advanced we were making. dropping those in different parts of the country, apple shop was one of the two rural places chosen. all the rest were urban. now apple shot and a film shot in chicago still exist of the original seven grantees.

since of that time, apple has been telling nuanced stories on appalachia and its struggles. so, for example, someone like me, i grew up in a very complicated relationship with appalachia. i was the only black kid in my school. i didn't really identify with the region. i had a lot of hatred toward the region because so much anxiety and conflict. it took me going to college and being introduced to appalshop films and helped me understand the structure and mentalities that go into people who have so consistently been hurt by outsiders, by large forces, companies, et cetera. and the flood is another example of that flood sort of continuing. >> just to familiar mooiz with the program, i was looking on the city's website. i mean what a beautiful town

nestled in the hills. before we go, talk to us about some of the archival material that appalshop has lost. the center stored more than 20,000 items, right. >> yeah, an incredible amount of items. had instruments, paintings, drawings, photographs, and film. film of all different types. the entire history of film in all the different for matts. a lot of b-roll and beautiful images that never made a film like how a chairmaker is putting together, a chairmaker who's no longer alive and the chair as well and tables, et cetera. right now, giving you an exact number isn't possible. restoration has luckily advanced so far that we're really working with some of the best people that we can have access to to help us figure out exactly what is salvageable and what is not. >> we hope you can salvage as much as possible. and sadly this deadly historic

flooding is part of the history you continue to chronicle. alex gibson. i appreciate your time this morning. thank you so much. >> thank you so much. >> great conversation. in an exclusive interview liz cheney sits down with our casey hunt. she faces a denier in her home state of wyoming. age is just a number. and mine's unlisted. try boost® high protein with 20 grams of protein for muscle health. versus 16 grams in ensure high protein. boost® high protein also s key nutrients for immune support. boost® high prein.

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the republican chair of the january 6th committee is facing a tough battle. >> former president trump made defeat cheney a top priority after she voted to impeach him last year. in an exclusive interview with our kasie hunt, she says trump lied and she hopes the voters will see that. >> we're here in wyoming where you are facing a really stuff primary in no small part because of the role use've taken on in the january 6th hearing. do you expect to lose? >> no, i don't expect to lose. i work hard for every single vote, and ultimately i believe the people of wyoming fundamentally understand how important fidelity of the constitution is, understand how important it is we fight for those fundamental principles on which everything else is based. >> if you do lose, what does it

say about that belief? >> look, i think we're in a situation where former president trump has betrayed the patriotism of millions and millions of people across our country and many people here in wyoming. he's lied to them, and it is a really dangerous situation. and what i know to do is to tell the truth and to make sure that people understand the truth about what happened and why it matters so much. >> why do voters here believe donald trump? >> you know, i think that it's the same thing that you see, you know, for tens of millions of people across the country. just consistent lying about what happened about the election, playing on people's patriotism, and he's so dangerous that, you know, my view is that at the end of the day, if defending the constitution against the threat that he poses means losing a

house seat, then that's a sacrifice that i'm willing to make. i don't intend to lose, but some things are more important than any individual office or political campaign. >> so the period, august 17th to november of 2024, when it's very possible donald trump could be the nominee, the republican nominee for president of the united states, what is liz cheney doing every day during that period? >> look. i'm focused right now on august 16th and on my primary race here. >> but surely you've thought about it. >> look, i am very focused on my primary race, but, again, my work on the january 6th committee, the work we've been able to do, i think, to help people understand the truth about what happened, that's work that certainly will continue. and, you know, i intend to continue to be very involved and engaged, again, no matter what happens in these issues that are

so fundamental, i believe, to the survival of our republic. >> you've said repeatedly in interviews you'll make a decision whether you'll run for president in 2024 down the line, which makes sense. but donald trump, there's reporting that he could announce in a matter of weeks. he could announce he's running for president before the midterm elections. how dangerous is it or how dangerous would it be to have former president trump out there as the only voice campaigning for the republican nomination? would he need someone to stand up and oppose him? >> look, i think he cannot be our nominee, and he certainly can never be elected president again, and i think that -- i know there are many, many republicans who feel that way all across the country, and, you know, whatever is necessary to make sure that he's not the nominee and certainly that he's not elected, there are many of us who are going to fight to do

everything necessary because the prospect of him -- we know what he'll do. we know what he's willing and capable of, and he did it. and so we can't ever let that happen again. >> do you think there's anyone out there capable of beating donald trump for the republican nomination? >> i think so. but i think that it's going to require republicans to tell the truth, and it's going to require republicans to stand up and say no more. we're not going to do this anymore, we're not going to embrace this lie, we're not going to embrace this very dangerous man. you know, i'm hopeful that you will see more republicans do that, but certainly i intend to be a big part of making sure that we protect the nation from the threat that he poses. >> what goes through your mind when you see election deniers get elected to important posted that could influence our next election like the arizona secretary of state, for example? >> i don't think anybody should vote for any election denier, and i think that we have to do everything we can to make sure

that people who say that, you know, that they will support, you know, donald trump, no matter what the electoral count is next time, people who have bought into the big lie, that's a toxin in our democratic system, and i don't think anybody should support those people. >> how do we stop it if these people get elected? >> i think we have to make sure they don't. we come together and form alliances across party lines to make sure that the people that we are electing are not going to unravel the republic. and i think that's going to be a particular issue in 2022 and certainly again in 2024. >> speaking of that, democrats spent a whole bunch of money trying to unseat peter meijer. whoo do y what do you think of that? >> i think it was terrible. peter meijer was one who stood

up and powe posed to impeach president trump. i think all of us across party lines have to support peach who believe fundamentally in our democratic system, and so i think it's -- you know, it's inexplicable and wrong for the democrats to be funding election deniers, particularly against one of the ten republicans who so bravely stood up and did the right thing. >> considering your past political career, your family, i mean, do you find it to be strange bed fellows to be working with democrats the way you have, on the committee across party lineser, when you've encouraged democrats in wyoming to vote for you? >> well, i think they're separate things. i think certainly when you look at what's happening on the select committee, what's happening in congress, it is weird. you know, i did not anticipate certainly that any of the things that have happened since january 6th would happen. i think it's been a really

important experience, and i think it's been really important both -- and mostly because of the work we've been able to do together for the country, and i think it's been an important experience working together. we talk about the fact that on our committee, you know, we don't have people that are politically grand standing or trying to score cheap shots, that we're very focused on the substance, and we have vastly different views of many of the issues the country is facing, but we're allies in terms of the fundamental constitutional issues. and here in wyoming, you know, we have same-day registration. it is the right of people to register whatever party they want to register as. and my message is one for all wyomingites. i represent every single person in this state, and i believe that there are thousands and thousands of people across our state who fundamentally

understand why it's so important to have somebody who's going to abide by the oath of office. >> there might be democrats who vote for liz cheney. >> yeah. >> remarkable. you said in your speech men are running the world and it's really not going all that well. do you think a wwomen in the u. are ready to run things? >> sure. look, one of the things that has been very moving for me over the course of the last year and a half has been the reaction of women and not just the women who've testified, although, you know, we've seen the incredible bravery of people like cassidy hutchison and sara matthews and ruby freeman and shay moss and caroline edwards. it takes real bravery to stand up and tell the truth as as those women have. >> based on that, do you think your father, dick cheney, wants

you to run for president in 2024? >> dick cheney is a big liz cheney supporter. >> do you think he'd encourage you to run? >> listen, i talk to him every day about things. look, his concern -- like i am right now, he's really focused this moment and won what's happening. both of us have this real sadness, frankly, about what's happening to our party and a real despair about how could bit that so many republicans would refuse to stand up and tell the truth. and it's a scary moment for the nation. >> i'd like to record to reflect that you did not say dick cheney is not telling you to not run for president in 2024. thank you so much for your time. >> thank you. fascinating interview if there. there are raids overnight as air strikes continue into kazaa. the.

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overnight, israel says it launched more air strikes into gaza, hitting several targets. this follows friday's air strikes which israel claimed to prevent a terrorist attack. >> a 5-year-old girl and others were killed in the air strikes. mary is joining us live from southern israel with the latest developments. nari. >> reporter: coming to you from southern israel on the border with the gaza strip. and if the past hour is any indication, things are escalating. we've seen in the past hour, four rocket launchers being intercepted overhead by the iron dome battery. during the course of this past

afternoon, we've seen islamic jihad extend the range of its rocket fire to israel again, something it didn't do until yesterday evening. and going the other way, israel air strikes continue to hammer islamic jihad inside the gaza strip. it's targeti i ing cruise and o sites. we've seen renewed hostilities and the gaza-based militant group. israeli prime minister said he would be convening the supreme court cabinet later this evening to assess where this is heading. and islamic jihad told cnn earlier this morning, that fire was on the horizon and its group would continue if battle and take the battle to israel. since may 2021, that war lasted 11 days between israel and the hamas militant group. hamas, the bigger and stronger

militant group. if there's any silver lining over the past day or two, with the renewed hostilities, that hamas has not gotten involved. >> we'll be watching this closely with you. thank you for that. coming up in our next hour, it's taken over a year to get it on the floor. now, lawmakers are gearing up for a marathon session on capitol hill over the infrastructure reduction act or inflation, i should say, inflation reduction act. what this could mean for millions of americans. that's next. s ♪ this... is the planning efct. this is how it feelso know you have a wealth plan at covers everything that's important to you. this is what it's like to have a dedicad fidelity advisor looking at your full financial picture.

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. good morning, everyone. welcome to your "new day." i'm amber walker. >> i'm phil mattingly. it is a crucial day on capitol hill here in washington. democrats are getting ready to advance president biden's massive economic and climate bill, teeing up what could be a major win for the white house. we'll take you live to capitol hill to tell you what's in it and how soon it can pass. >> and a major blow to abortion advocates. indiana becomes the first state in the country since roe v. wade was overturned to pass a law banning nearly all abortions. we'll tell you when it goes into effect. and ready to talk. russia is open to discuss a possible prisoner swap with the u.s., after wnba star brittney griner is sentenced to nine years behind bars. and a crisis in the classroom. across the country, schools are facing a critical teacher shortage. ahead, we're going to talk to a school superintendent about what he is doing to stack up and what it could mean for the rest of th