Dr. Frieden says outdoors safer than indoors for reducing spread of coronavirus

This is a rush transcript from "Your World with Neil Cavuto," July 1, 2020. This copy may not be in its final form and may be updated.

NEIL CAVUTO, FOX NEWS ANCHOR: Thank you, Bill, very, very much.

We are focused right now on Arizona, where they have had a big old spike in cases. And the vice president will be addressing the situation there in Phoenix, this as we're seeing just over the past couple of weeks double- digit spikes in key states, including 85, north of that right now, over the last couple of weeks.

And the coronavirus count, at least with cases and hospitalizations, they're going kind of in two different directions. The cases are rising, the hospitalizations not nearly as much. And, in fact, deaths across the country continue to come down day by day.

We're going to pick it all apart for you right now.

The latest read on the White House with Kristin Fisher, who's been following all the fast-moving developments.

Hey, Kristin.


Well, right before the vice president landed in Phoenix, Arizona health officials announced a new daily record for coronavirus cases and deaths in their state.

Now, the vice president was joined by Dr. Birx and other members of the Coronavirus Task Force. They were all wearing masks. And the goal of this trip -- they're not going to be there very long, but the goal of this trip is to really get an on-the-ground assessment of what it is like right now in one of the hottest hot spots in the country.


MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: With your leadership, with the full support of the federal government behind you, and the cooperation of the people of Arizona, we will slow the spread and we will flatten the curve.


FISHER: Arizona's Governor Doug Ducey was also wearing a mask when he greeted the vice president on the tarmac. And he had this message for his constituents heading into the holiday weekend:


GOV. DOUG DUCEY (R-AZ): ... do go out, we want them to mask up. We want them to physically distance. We want them to wash their hands.

We did take some actions to slow the spread of this virus in terms of gyms and bars and water park tubing and movie theaters will be a pause for the next 30 days.


FISHER: And, remember, this comes just one day after Dr. Anthony Fauci said that, unless the United States can get this under control, we could see upwards of 100,000 new cases a day.

As for President Trump, Neil, you know he has been under mounting pressure from Republicans, as well as Democrats, but what's new here is really Republicans, to wear a mask.

And in an interview today with FOX Business' Blake Burman, he told Blake that he would be open to now wearing a mask, after weeks, months even, of declining to wear one. He now says that he would be open to wearing one if the situation warrants.

So that's certainly a change in tone from President Trump -- Neil.

CAVUTO: Yes, that's a big one.

Kristin, thank you very, very much.

In the meantime, as Kristin was speaking there, California is indeed confirming that it's shutting down bars, indoor dining for most residents, this as places like New York City are also pausing on restaurant openings, as viruses continue to surge across the country.

Casey Stegall following it all from Dallas, Texas -- Casey.

CASEY STEGALL, FOX NEWS CORRESPONDENT: Yes, Neil, let's talk about Florida, which is another big hot spot.

As you well know, hospitalizations are a very important metric to watch when it comes to measuring how severe COVID-19 is impacting a particular community. And most states offer detailed information about that very data, either on their Web sites or their public dashboards.

Florida does not, however. Right now, the Department of Health only shows cumulative hospitalizations for the virus across the whole state, no info about the current number of patients, what communities they're in, how many, many are in ICU or on ventilators.

However, Florida Governor Ron DeSantis now says that information will soon be included in the state's reporting, because health experts have argued that data is extremely valuable, especially as Florida grapples with a surge of new cases, particularly among young people, one of the driving forces behind closing bars there.


GOV. RON DESANTIS (R-FL): You have a responsibility not to come into close contact with folks who could be more vulnerable.

And if we protect the vulnerable, we're going to be able to get through this patch adequately.


STEGALL: Multiple communities across Florida have decided to close beaches for the holiday weekend, like in Miami, the Florida Keys and Palm Beach.

Interestingly, new numbers from the CDC show coronavirus is not as deadly for younger patients. That is a little bit of good news, when we seem to be reporting all of the gloom and doom with this.

In fact, nationwide, about 16 deaths are attributed to COVID in people under the age of 25. For contrast, more than 640,000 deaths are in patients above the age of 75 -- Neil.

CAVUTO: Casey Stegall, thank you very, very much.

Well, as you heard Kristin Fisher reported earlier, all the governors are making a push right now. The better part of valor would be to wear a mask. And no less than the president of the United States, in an interview with our Blake Burman, was open to the idea.

Take a look at this.


BLAKE BURMAN, FOX NEWS CORRESPONDENT: Speaking of COVID-19, Goldman Sachs put out a model yesterday, saying that, if there is universal masks, it would be a net positive for GDP.

We know the IHME model says that, if there were universal masks, that it would be beneficial, it would save lives.

So, if there is an economic benefit, sir, and there is a public health benefit, sir, why not go forward and say there should be mandatory masks all across this country?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, I don't know if you need mandatory, because you have many places in the country where people stay very long distance. You talk about social distancing.

But I'm all for masks. I think masks are good. I would wear -- if I were in a group of people, and I was close...

BURMAN: You would wear one?

TRUMP: Oh, I would. I would. Oh, I have. I mean, people have seen me wearing one.

If I'm in a group of people where we're not, you know, 10 feet away, and -- but, usually, I'm not in that position. And everyone's tested. Because I'm the president, they get tested before they see me.

But, if I were in a tight situation with people, I would absolutely...

BURMAN: Do you think the public will see that at some point?

TRUMP: I mean, I would have no problem. Actually, I had a mask on. I sort of liked the way I looked.


CAVUTO: Well, that's going to be welcome news to Chuck Grassley, with whom I was chatting earlier on FOX Business, when he was saying, maybe, just as an example, it would be wise for the president to wear a mask, so that people can blame him for it not being important if they don't wear a mask.

Dr. Nicole Saphier with us right now on this mask news.

What do you think, Doctor?

DR. NICOLE SAPHIER, FOX NEWS CONTRIBUTOR: Hey, Neil, you heard it straight from the president's mouth. He doesn't have a problem with masks, and, by the way, he likes the way he looks in them.

So, I -- yesterday, I actually said that I wasn't going to tell the president that he needed to wear a mask, but I recommended it, but, also, there's a logical reason, which the president just reiterated, on why he doesn't wear masks.

He's constantly tested and those around him are constantly tested. But the good news is, for messaging purposes, he is saying that he is all for masks, especially when you cannot maintain social distancing. And I think that's the message going forward to Americans right now, as we're seeing rising cases in 35 states.

Social distancing and mask wearing, unfortunately, that's our normal for right now. But the good news is, it's not forever, Neil.

CAVUTO: All right, but, nevertheless, apparently, these phased reopenings are not guaranteed either. And we're seeing a number of states dial things back, the latest, California, which will be shutting down bars and restaurants in a good chunk of the Golden State.

You know what's going on in Texas. You know what's going on in Arizona. What do you make of it all?

SAPHIER: Well, Neil, unfortunately, people keep talking about the concept of herd immunity.

And, really, herd immunity is essentially when a large amount of the population, upwards towards 60 to 70 percent, have been exposed to the virus and have developed some sort of immunity to it. Now, whether that is because of widespread infection or because of vaccines, right now, because that we have had so -- we know how severe this affects our elderly, the widespread transmission of the virus will cause a lot of deaths, which is why we're in a race for a vaccine.

We have some excellent, promising results that have many companies, and so, hopefully, that we can do some sort of mitigation of the spread of this illness while we're waiting for a vaccine. Unfortunately, there's still viral transmission. Ever since mid-June, we're seeing rising cases, Neil.

And there's a combination of these mass gatherings, whether it was the protests, Memorial Day celebrations, what have you, but there has been civil unrest that has caused a lot of people to get together, whether it's indoors, outdoors, that likely promulgated some of the spread of this virus.

And so we have to take a step back and do what we can to lessen community spread.

CAVUTO: Do these numbers jibe with what you thought they would be?

In other words, I remember, we were talking in the middle of the lockdown here. You all but predicted, all right, we will see a spike in cases. Now, in certain states, it's been more than just a spike.

But, nationally, how does it look to you?

SAPHIER: Well, I would say -- it's really hard to say.

I mean, if you look at the map right now, Neil, it's really just the small area of the Northeast, the ones that were hit the hardest in the beginning, that are still doing OK, New York, New Jersey, Connecticut.

And the rest of the country are now hitting their first wave of the virus. I would have liked to have seen fewer cases of community spread, but, unfortunately, I think the civil unrest and these stay-at-home orders, the lockdown orders in states prematurely, may have led to this, Neil.

The good news right now, as you have been mentioning, your reporters have been mentioning, the deaths are not paralleling the new cases.

CAVUTO: Right.

SAPHIER: But I'm cautiously optimistic, as there tends to be a lot lag time between the time that the deaths come from the rise in cases.

And, also, Neil, the great news is that, yes, there are younger people testing positive right now, but that means now is the time to protect the vulnerable, because, if the young people have the cases, then it may be in a month where we actually see the elderly being infected again.

CAVUTO: All right.

SAPHIER: So, now is the time to be protecting the vulnerable.

CAVUTO: All right, thank you, Doctor. We will watch it very closely. Good catching up with you.

SAPHIER: Thanks, Neil.

CAVUTO: Also getting more details on this alleged bounty that the Russians were placing on American soldiers.

Forget about if and when the president was told. What if the intelligence itself is wrong? What the administration is saying -- after this.



ROBERT O'BRIEN, U.S. NATIONAL SECURITY ADVISER: When it comes to the briefing, that's another false story. And I'm somewhat surprised that The New York Times ran with that story.

The president was not briefed because, at the time of the -- of these allegations, they were uncorroborated.


CAVUTO: All right, the national security adviser to the president saying, you know what, the story itself is problematic, and that maybe all this fuss over whether the Russians were paying bounty on American soldiers' lives might itself be wrong.

Let's get the read from Mike Emanuel following these fast-moving developments.

Mike, what are you hearing?


A short time ago, the commander in chief weighed in on this issue in a newsy interview with our colleague Blake Burman from FOX Business.


TRUMP: I think it's a hoax. I think it's a hoax by the newspapers and the Democrats.

I agree with the intelligence people. I think, frankly, that many of the intelligence people didn't think it was something that even happened. And, if it did happen, the Russians would hear about it.


EMANUEL: FOX News has learned the so-called Gang of Eight congressional leaders will receive a special briefing on this issue tomorrow in a secure facility on Capitol Hill.

The Senate and House Intelligence committees are receiving briefings as well. Top Democrats say, they want answers.


SEN. CHARLES SCHUMER (D-NY): President Trump, his number one job is to protect American soldiers, to protect the men and women who fight for us overseas.

Instead of dithering about what he knew, what he didn't know, he should be talking -- he should have a plan.


EMANUEL: Majority leader Steny Hoyer is demand a full briefing on the matter from top intelligence officials for the entire House of Representatives.

Hoyer is calling the charge of Russia or any other nation paying people to kill Americans an extraordinarily serious matter -- Neil.

CAVUTO: Thank you, my friend, Mike Emanuel, on that.

Want go to Trey Gowdy right now, the former South Carolina congressman, so much more of.

What do you think, Congressman? I mean, we're awaiting a White House press briefing. This will no doubt come up. That the story itself might be a little specious, what do you think?


I mean, Neil, the word intelligence has this ring of infallibility around it, but I was on the House Intelligence Committee. Substitute the word information. Substitute the word evidence.

Is the information reliable? Has it been corroborated? What is the source of the information? You have human intelligence and you have signal intelligence. So which was it here?

But -- and then, if you can establish that, by what quantum of information or evidence do you need to know something before you brief the commander in chief? If there's a 1 percent chance it's true, are you going to tell him about it? Probably not.

So, in D.C., almost every sentence begins, if true, and then they run with it. If true, it's treason. If true, he's unfit to be the commander in chief. How about we just find out whether or not it's true or not? Let's do that first.

CAVUTO: If it is, what do you do?

GOWDY: You find out who your briefer is, and you figure out why the briefer did not think it was important enough to bring it to your attention.

Here's what I can tell you. John Ratcliffe briefed the House and the Senate yesterday morning and yesterday afternoon. You know what he did in between? Do you know what he did over his lunch hour, Neil? He dropped his youngest daughter off at the Naval Academy, where she will begin a decade's worth of service to this country in uniform.

Robert O'Brien has a child that wears a uniform. Mike Pompeo wore the uniform of this country. If they believed that Russians were setting boundaries on soldiers, they would all three be in the president's office before this interview ended.

So, look, I know they don't like President Trump. I know they don't want him to get reelected. But this is military. This is -- this is our country's interests. And what you're doing is maligning people like Ratcliffe and O'Brien and Pompeo, who would never allow bounties to be set on our soldiers, ever.

CAVUTO: So, Congressman, you know the president very well. I know you're out of office, obviously. But you're an influential figure.

Do you think that he has maybe picked up the phone and called Vladimir Putin himself, is there any truth to this, get to the bottom of it?

GOWDY: I was actually with the president yesterday.

And my guess is that he has charged Robert O'Brien and Johnny Ratcliffe and said, find out whether or not there's an evidentiary basis for this allegation.

It's an incredibly important allegation. But before you call a principal, I want to know, was it something you read in a newspaper? Is it signal intelligence? Is it an e-mail? What is the source of this serious allegation about bounties?

Because, otherwise, I mean, if you're not armed with facts, if you're not armed with credible evidence, how's that conversation going to go? Are you doing it? No. Nyet. We're not doing it. No.


CAVUTO: Do you think, then, Congressman, that this is a hoax?

The president just told our Blake Burman, it's a hoax. Does it sound like a hoax to you?

GOWDY: I don't -- he and I do not use the word hoax in the same way. I think what he is referring to, it is another drive-by hit piece by The New York Times.

So, when he says hoax, I think he is referring to the source of this allegation. I do not think at all he considers the allegation that Russia would be putting bounties on our men and women to be a hoax at all. I have never gotten that impression.

CAVUTO: All right. Trey Gowdy, thank you very much. Very good catching up with you.

GOWDY: Yes, sir.

CAVUTO: All right, in the meantime here, at the corner of Wall and Broad, we had a record of the Nasdaq today.

So, if these increasing number of cases that we're hearing about regarding the virus are rattling investors, you didn't see it that much. It was in the Nasdaq that was the story today, not the Dow. The Nasdaq is the one that hit a record, on confidence right now that we're hiring a lot more folks, certainly in the private sector.

And that has been the wind at this market's back now going into the third quarter. We shall see.

We're exploring that in more detail in our next segment, because the president has already made it clear to our Blake Burman, if you go to that other guy, Joe Biden, it all ends -- after this.


CAVUTO: All right, you're looking live at the White House Briefing Room, moments away from hearing from Kayleigh McEnany.

There's a lot certainly going on today between the spike in cases and the spike in news stories right now concerning that alleged Russian bounty story.

Stay with us. Back in 60.


CAVUTO: All right, welcome back, everyone.

I told you a little bit before how the Nasdaq sprinted to a record today, and we had the market average and just soaring in the last quarter, all of them. Year to date, they're not doing too shabby either.

The president says, all this is frittered away if that other guy, Joe Biden, gets into the White House.

Blake Burman, who hasn't been doing much today, caught up with him and made a little bit of news on that and a host of other subjects.

Blake, very good to have you.

BURMAN: Thanks, Neil.

CAVUTO: On the markets and everything else going on, the president seemed to make clear, all this ends if I'm not here, right?


And the backdrop for that question to President Trump was this when I spoke with him here at the White House earlier this afternoon. I asked the president about his tax plan and Joe Biden's tax plan and the difference.

The vice president wants to raise taxes on the wealthy, wants to increase the corporate rate from 21 to 28 percent. So I asked President Trump, in this environment, of which there is double-digit unemployment right now, does he fear that the vice president's plan might actually play better in this election?

And the president used that question to talk about what he thinks would happen to the stock market if he is not reelected. Watch here.


TRUMP: And they say this. If he got elected, that's an overhang over the market, because the market would crash, would absolutely crash.

BURMAN: What do you mean by crash?

TRUMP: The market would go down by a tremendous amount. He would raise taxes. He would raise regulations.

Look, one of the biggest things I have done is, I have cut regulations more than any president in history. We still have regulations, but they're much less.

If Biden got in -- and, first of all, it wouldn't be him, because he's not into regulation. He doesn't know -- he doesn't know where he is, frankly. I watched his press conference yesterday. He's answering -- I mean, he's answering questions like this from a teleprompter. I said, what's that all about?

But his people, the people around him are radical left. They are going to raise taxes. They are going to raise regulations. And they are going to put everyone out of business. It would be a disaster.


BURMAN: Neil, one thing the markets and investors will be looking for is this phase four relief package down the line and the negotiations that will resume at some point later this month.

The president telling me this afternoon that he will be speaking with Mitch McConnell tonight about next step measures. And when I asked the president about whether or not he supports another round of direct payments, the president said, at this point, he does -- Neil.

CAVUTO: Remarkable job, my friend.

BURMAN: Thank you.

CAVUTO: You made so much news here, I couldn't keep up with it.

BURMAN: Thanks, Neil.

CAVUTO: Blake Burman, star of FOX Business, star on FOX, period, what a great job. A lot of big headlines there.

Charlie Gasparino to react to just the one on Biden.

What do you make of that? Because, Charlie, you have been reporting as well that there are those on the Street who get worried, because we always say, they're not Republican or Democrat. They love making money. They have made a lot of money under this president. And they don't want that jeopardized.

But they do see the possibility of Joe Biden coming in, taxes will go up, right?

CHARLIE GASPARINO, FOX NEWS SENIOR CORRESPONDENT: Well, I think the president was watching our conversation yesterday about this very issue.

Yes, I mean, listen, this is -- he's on strong ground if he takes his campaign in this direction, I believe. And I have been reporting this out now for the last week.

The Street, -- it's not showed up yet in the markets. But when you talk to financial advisers, to people who deal with small investors and manage their wealth, if you deal with large investors, they are worried about the massive changes that are going to come if Joe Biden gets elected.

And, of course, if he gets elected, there's a good likelihood that they're going to take the Senate, so you have all three houses in one control.

And what are those changes?

CAVUTO: So, what is the change that they're looking at Charlie, specifically? What worries them the most?

GASPARINO: Well, all of it. They're going to have -- they're going to -- they could run the gamut.

They're going to reverse the Trump tax cuts on corporations, the corporate tax cuts. They're going to raise the upper rates. They're going to ramp up regulations, because Elizabeth Warren, whether she's either in the White House as Treasury secretary, or in the majority as the senator from Massachusetts, is going to have a big say in banking policy, in policies regarding -- regarding a whole host of issues.

And she -- there is not one regulation that Elizabeth Warren doesn't like. I think Donald Trump, for all his missteps in terms of handling COVID and some other issues, he's on pretty strong grounds that the -- that there's going to be an economic 180 going on in this country if Biden gets elected.

Now, of course, the Fed is going to be there, and the Fed is still going to be keeping interest rates low.

CAVUTO: Right.

GASPARINO: So, I don't know if we're going to have a market implosion.

But we're clearly going to have a different economy, an economy that's going to look much more -- even more leftist than Obama. And, remember, the Obama years was incredibly slow growth. You got that on top of a recession. He's going to be doing this stuff amid a recession, because the current pandemic recession is not going to end by next year if he gets elected.


GASPARINO: You're still going to -- we're still going to have some rough times.

It's -- I'm telling you, he's got a good case here, because it's a 180 from what we got today. And what we had today is this, before the pandemic -- just go by the numbers -- lower-income wages were rising. The market was doing pretty good.

The -- I didn't go like his trade policy. I think -- I thought that really hurt economic growth. But take that -- take that off the table. You basically had 3 percent unemployment, I mean, and 2.5, 3 percent growth.

CAVUTO: Got it.


Joe Biden is basically proposing stuff that is a 180 of the policies that gave us that. You just have to -- if you're fair about it, you have to point it out.

CAVUTO: All right.

GASPARINO: And wealth managers have been doing it now for the last couple weeks, as Biden...


GASPARINO: ... polls.

CAVUTO: Got it. All right, Charlie, thank you very, very much, my friend, Charlie Gasparino, on that.

Again, we're not looking at this through the prism of politics here, just what the markets like. They don't care who's in the Oval Office, as long as they're making money.

With this president, just as with a Democratic president they really liked as well, Bill Clinton, they made a lot of money. They liked making money. They're not red or blue. Green. They love money, money, money.

All right, and you might not love what's going in American Airlines, but remember the middle seat? It's going to be occupied now. In fact, American leading a push to go full-throttle with fully staffed jets and every seat taken -- after this.


CAVUTO: All right, so you like that empty middle seat on airplanes these days, at least what had been the case in American Airlines? Ending today. It's going to have a person in it, and it's going to be that way for a while.

American Airlines going the full flight route today. Others in the industry could quickly follow.

I wonder if Dr. Tom Frieden is worried about this. The former CDC director joins me right now.

That's a lot of people crowded in a close space, Doctor. And American is leading the effort. Others, I suspect, could follow.

Is it a good idea?


The more people you have packed together in small areas, particularly if they not wearing masks, particularly if it's indoors, the greater risk you have of spread. So, I think travelers will probably have to make decisions on that.

But, fundamentally, the issue is larger than any one airline. It's larger than any one group. The virus has the upper hand in the U.S. right now. And if we work together, we can gain the momentum and begin to put it back into control, because, right now, not only is it at a high level, but it's increasing rapidly in many parts of the U.S.

CAVUTO: And to your point, Doctor -- and you were ahead of this curve, warning about it -- the fact of the matter is, Michigan now dialing back some phased reopenings, shutting down bars, some indoor dining.

The same, we're hearing out of California, where they're scaling things back, in Texas and Arizona, where they already have. What do you do?

FRIEDEN: Well, one of the things we have to do is recognize that it's not just open vs. closed. It's more granular, more detailed. It's more like a dimmer dial.

There's certain things that we're learning are really dangerous. First off, we're seeing big increases in young adults all over the country. So, the message has to get out more than what stays in young adult -- starts in young adults doesn't stay in young adults. We're all in this together.

And we have seen many outbreaks from bars. You're talking about a small amount of space, lots of people together, not wearing masks, obviously, from many different places for many hours. That's essentially a formula inviting the virus in.

What we need to do is keep the virus out. And that means there's a lot of things that we can do out of doors. That's way safer than indoors. There are things that we can do to safely restart our economy.

For example, some states early on have allowed storefront pickup of -- from retail. That's a really smart idea. You're not going indoors and you're doing business there. So, there are lots of things that we can do to get used to this new normal of COVID.

But if we just pretend it's not here, it's going to come back to bite us.

CAVUTO: You know, there's also been this nationwide push. I think Nancy Pelosi wanted to make it a federal policy to wear a mask.

Even the president telling our Blake Burman today, yes, he's open to that and will. What do you think?

FRIEDEN: Well, fundamentally, the more people wear masks, the less the virus will spread. That's just the facts.

Now, that means that it's particularly important in a community where there's a lot of COVID spreading, when you're inside, when you're within six feet of someone else. This is not a political statement. This is a statement that we're opposed to the virus, not that we're opposed to or in favor of any individual or group.

But it's really important. It's one of the key things that we can do, wear a mask, wash your hands, and watch your distance. If we do that, we will be able to get our economy back sooner and faster.

But we do have to move carefully in places where the virus is spreading rapidly, or it'll be really difficult to restart schools in the fall and our economy in the coming weeks and months.

CAVUTO: All right, Doctor, thank you. Good words of advice, all.

Appreciate it.

Want to go to Senator Kevin Cramer right now, because, for a lot of businesses, they're still impacted by this, the South Dakota Republican, among others, pushing a new measure to extend the so-called Paycheck Protection Program at least until August, I believe August 8.

Senator, where does this all stand right now?

SEN. KEVIN CRAMER (R-ND): Well, as you probably know, Neil, the PPP was extended last night by unanimous consent vote here in the United States Senate. And it goes over to the House, I suppose, for their consideration or, more likely, maybe even ends up as part of the next CARES package.

Or perhaps that $130 billion that so far has not been borrowed or lent gets repurposed for some other -- for some other purpose, based on what's -- what the demand is and what the tools are that the economy needs.

CAVUTO: Right.

By the way, Senator, I apologize North Dakota, not South Dakota, so my bad there.

I'm wondering. You mentioned this is going to the House. I mean, could they change it, alter it, change some of the guidelines on who's receiving it? What have you heard?

CRAMER: So, I think it's a great point, Neil.

And I think that is a possibility, if not even a likelihood, remembering that we are soon to be leaving here for the Fourth of July holiday. We will be back about middle of July sometime for three more weeks, during which time I think the Senate and the House will be negotiating some sort of a phase four CARES Act.

And so the House certainly could change that. It would have to come back over here for our agreement. But I think we have time to deal with it. Clearly, the demand for the PPP has largely been met. I mean, we have been sitting on about $130 billion balance for several weeks now.

CAVUTO: Right.

CRAMER: So, I do you think that there needs to be some tweaks, perhaps of some more focus and targeting

CAVUTO: Do you worry, though, with all the move now to re-shut down some businesses or clamp down on capacity measures as part of this reopening phases, dial back a little bit, states like California and in Texas, Arizona, et cetera, are you concerned that you might have to fork over even more money, if this means some of these same businesses get back on the brink?

CRAMER: Well, I am concerned about that, Neil.

But I want to remind people, too, that there's still a lot of unallocated - - it's certainly appropriate, but several hundred billion dollars of unallocated dollars from the previous phase.

And I think it's important that we consistently look at what the needs are, see what the changes are that we should be making to those -- to those dollars that have already been appropriated.

But I want to also encourage people to not be driven so much by fear, whether small business, big business, airlines, or farming. Use the common sense and the guidelines that the government's provided, along with the brain that God gave you. But don't be so fearful that the cure does, in fact, become worse than the disease itself.

I don't -- while I understand what your previous guest was talking about, I don't share his level of concern about it. I -- we need to protect elderly people. We need to protect grandma. But 35-year-olds, you know, we're going to have to learn to live with the disease, rather than let the disease force us to trade living in for surviving.

And that's not just an economic position. I think that's just a practical living position that I take.

CAVUTO: There's been a move afoot right now -- and we're going to raise this with a former police commissioner -- to defund police departments, Senator, especially in New York, where they're looking to shave better than a billion dollars from the budget.

Minneapolis just wants to disband the police altogether. This is picking up steam. What do you think?

CRAMER: I think that, if Minneapolis wants to kick all the police out, they might as well show the exit to all their businesses, and we'd welcome them in North Dakota, because we're not dumb enough to defund and get rid of our police departments.

So I think, if locations want to be that foolish, then I think a market will pop up with states and communities that value the heroes that wear the badge and support public safety.

And I think it could become a very interesting state-to-state competition, if you will.

CAVUTO: Yes. Well, we might be there already.

Senator, thank you very, very much. Good catching up with you on this.

CRAMER: My pleasure.

CAVUTO: And to the senator's point, I mean, it's not only getting rankles in Washington, how they're wanting to ease up on funding for police departments, but even in the police commissioner right now of New York City.

Take a peek. He was saying some stuff there that was very concerning to him about Mayor Bill de Blasio's effort to lead about a billion-dollar trimming in the police budget.

We're going to go right now to Kayleigh McEnany, who is addressing reporters right now.

Let's take a look.


KAYLEIGH MCENANY, WHITE HOUSE PRESS SECRETARY: .... to CHOP, but I'm told they went back to CHAZ -- was a failed four week Democrat experiment by the radical left and the results are in. Anarchy is anti-American, law and order is essential, peace in our streets will be secured.

While the Democrat mayor of Seattle proclaimed that CHAZ was to be quote "the summer of love," in fact it was not. And other failed Democrat politicians also remain passive, were even silent in the face of anarchy, but while that happened President Trump set the tone -- law and order must prevail to preserve peace in our streets.

The president is not the Democrat governor of the state of Washington, the president is not the Democrat mayor of Seattle but nevertheless, the president must lead by example and be prepared to act in the face of failed Democrat leadership, which is what we saw in Democrat Seattle, in Democrat Wisconsin.

President Trump has always stood on the side of law and order and we are pleased to report that law and order has prevailed and Seattle has been liberated from the anarchists. In President Trump's America, autonomous zones will have no sanctuary.

The BHAZ, B-H-A-Z, which stood for the Black House Autonomous Zone, across from the White House was swiftly dismantled. 100 anarchists were arrested for rioting and destruction of federal property here in D.C. I believe that number's now above 300. Four men have been charged in federal court for attempting to tear down the statue of Andrew Jackson in Lafayette Square. And there are 200 open domestic terrorism investigations.

You contrast the President's vision of law and order to that of the failed CHAZ experiment and anarchy and here's what you find in the failed Democrat experiment that took place out in Seattle. The Seattle Times said the shooting at Seattle's CHOP protest tragically killed a 16 year old boy, leaving a 14 year old seriously injured. That's what happens in an autonomous zone.

The police chief Carmen Best, who did a marvelous job winding down the CHOP zone, noted that CHOP has become lawless and brutal and enough is enough and she took action. According to reports, quote "police also investigated several vehicles circling the CHOP zone with people inside carrying fire -- firearms and wearing body armor." This was no quote "summer of love," as the Democrat mayor in Seattle said and President Trump compelled action.

He has said "take back your city now, if you don't do it, I will." He has said "this is not a game, these ugly anarchists must be stopped immediately. Move fast." And finally, the Democrat mayor in Seattle, who was long delayed, finally gave the order to dismantle the CHAZ and it was an admission -- it was an admission that President Trump's vision is right, that anarchy is wrong and that law and order bring peace.

And with that, I will take questions.


QUESTION: Kayleigh, thank you so much. National Security Adviser Robert O'Brien said that the intelligence about the alleged Russia plot was being taken so seriously that U.S. allies were alerted and that it could impact military tactics. So how is that a hoax?

MCENANY: Well as I mentioned yesterday, what happens when any intelligence comes in unverified, if there is any way that it could affect American troops or allies, it is immediately communicated on the ground to ensure that troops and commanders and generals can make the best decisions tactically speaking. So that's the way it's done.

But what I would say is at the same time, until there's a strategic decision for the president to make, until it is verified, it is not briefed up to the president of the United States. That's how intelligence works.

QUESTION: Is he angry or frustrated or upset about the fact that he was not in the loop on this, that members of Congress were briefed and U.S. allies were briefed?

MCENANY: No, the president believes that and has great faith and Ambassador O'Brien and the others who made the decision that this shouldn't be risen to his desk. It was a career CIA officer with more than 30 years of tenure who made the decision not to brief it up and the National Security Adviser agreed with that decision.

She's an excellent officer and does great work and made the decision not to brief it up. It was the right decision to make and at this moment, as I speak to you, it is still unverified.

QUESTION: And Kayleigh, just a follow up very quickly. For you and Robert O'Brien and others who expressed real outrage about the leaks, is there outrage about what the Intelligence Community is investigating, which is the possibility of these Russian bounties targeting U.S. troops?

MCENANY: Make no mistake that this administration has acted tough on Russia, always makes the decision that's in the best interest of protecting our troops, like killing General Soleimani, who killed 600 American troops, maimed thousands others, and al-Baghdadi.

We always act in the best interest of our troops but this is unverified still at this very moment.


QUESTION: Kayleigh, why is the president calling Black Lives Matter a symbol of hate?

MCENANY: Well, what the president was noting is that that symbol -- when you look at some of the things that have been chanted by Black Lives Matter, like "pigs in a blanket, fry them like bacon," that's not an acceptable phrase to paint on our streets.

Look, he agrees that all black lives matter, including that of Officer David Dorn, Patrick Underwood, two officers whose lives were tragically taken amid these riots. All black lives do matter, he agrees with that sentiment, but what he doesn't agree with is an organization that chants "pigs in a blanket, fry them like bacon" about our police officers, our valiant heroes who are out on the street protecting us each and every day.

QUESTION: But Americans of all races have protested in all 50 states around that phrase "Black Lives Matter" and the president is here calling it a symbol of hate?

MCENANY: He is talking about the organization. I would note to you that the greater New York BLM president has said "if this country doesn't give us what we want, that we will burn down the system and I could be speaking literally." I would call that a pretty hateful statement.

Yes, Ben.

QUESTION: But, Kayleigh, he's not talking about the organization in his tweet..

MCENANY: Yes, Ben.

QUESTION: He says the words. He says the words.

MCENANY: Which...

QUESTION: Black lives matter.

MCENANY: What's the name of the organization again?

QUESTION: Black Lives Matter.

MCENANY: There you go. You just answered my question. Go ahead, Ben.

QUESTION: Question about coronavirus. Earlier today the president said, I think that at some point that's going to sort of just disappear I hope. He's hoping that it will disappear, the President's strategy at this point?

MCENANY: No, the President's confident that it'll disappear, he's confident that he's put together a revolutionary first class team that is going to break through bureaucracy and get us a vaccine.

He's confident that that will lead us to a place where we won't have COVID on our hands and in fact there was very pleasing news today from Pfizer and BioNTech that showed positive results for their vaccines.

QUESTION: Dr. Fauci says that we're heading toward 100,000 cases per day.

So, why does the president have evidence that it would just disappear?

MCENANY: Well, one...

QUESTION: (OFF-MIKE) distinguish between a vaccine and it just disappearing.

MCENANY: One thing I would note with regard to cases, we're aware that there are embers in the country, we're aware that there are places with rising cases and that's why Dr. Birx is on the ground and others.

We're continually assessing that, but one thing I would note is just that when you do test more people you do identify more cases and that is rapidly ongoing; we're testing more than 500,000 a day.

To give you an example on April 6, really the height of the pandemic, we were doing 151,525 test. One day, Thursday is the number that I have here. We conducted 637,587 tests. So when you have more than a five fold increase in tests, you have a greater identification of cases.

QUESTION: So you consider what's happening in Florida and Texas and Arizona as embers?

MCENANY: I would say that those are -- we see rising cases, we see embers around the country, we always knew that would come with reopening, but those who are identifying as positive cases do tend to be younger individuals, as the Vice President noted and I think the increase in testing is part of the contribution to what we're seeing. Yes?

QUESTION: Today, Mayor Bowser said her office has communicated with the Department of Interior about the Fourth of July celebration, and it's not, in her mind, in keeping with the CDC guidelines as well as D.C. Department of Health guidelines.

The White House has said over and over again we should look to our local authorities for how we should act.

Should the -- should the administration be following the local guidelines (OFF-MIKE)

MCENANY: The president said that we should follow our local authorities with masks, so that's the decision that he encourages people to follow those authorities. The CDC guidelines, I would also note, say recommended but not required and we are very much looking forward to the Fourth of July celebration.


QUESTION: Are you -- are you preparing some options for the president to consider for retaliation against Russia, should this intelligence conclude to be true?

MCENANY: I won't get ahead of the president on action, I also won't get ahead of the intelligence, which at this moment is unverified.

QUESTION: Does the president want this intelligence to be corroborated or not, or what has he told his advisers on this front?

MCENANY: The president is -- it's unverified. It's being assessed.

It's going through the same process normal intelligence would go through, but what's unfortunate is we're having this discussion because of the New York Times deciding to run with this erroneous information about the president being briefed, which was not true.

And the erroneous information that there was a conclusion when in fact there was not a conclusion. Yes?

QUESTION: Kayleigh, can you confirm that the CIA director and NSA director will brief the Congressional Gang of Eight tomorrow about the Russia bounties?

MCENANY: Yes, that is the plan.


QUESTION: Two of them. Anyone else that will be briefing the Gang of Eight?

MCENANY: I'm not entirely sure who else will be in that briefing.

QUESTION: And can you also say does the president generally have confidence in the intelligence communities findings and conclusions about Russia?

MCENANY: Yes, he does have confidence and he's many times acted on verified intelligence and there's times he's decided that's in our strategic interest not to act. I would give you the example of Soleimani and al- Baghdadi.

And then the example of Iran shooting down the -- when Iran engaged in actions and the president said it's not time to engage because shooting down a -- shooting down a entity is not the same as loosing lots of civilian lives. Yes.


QUESTION: Thank you, Kayleigh.

MCENANY: Shooting down a drone. Excuse me.


QUESTION: The president has come under criticism this week for statements that he has made that his detractors say are dog whistles to a certain segment of his base that he is trying to gin up for reelection.

Those include comments like kung-flu or heritage while talking about Confederate statues.

And most recently they included the video that I know you discussed in here the other day, but the video of a supporter of his using the term "white power."

So why hasn't the president denounced that video and called that a hateful statement?

MCENANY: The president took down that video, that deletion speaks strongly. What I would note, the president has repeatedly condemned hate. August of 2019 and one voice, our nation must condemn racism, bigotry and white supremacy. These sinister ideologies must be defeated if hate has no place in America.

In April 2019, we have no tolerance for those who disrupt this peace and we condemn all hate and violence, especially in our places of worship. August 2018, I condemn all types of racism. He's repeatedly done this.

QUESTION: Why hasn't he denounced that specific video and said that that is hateful language that was used in it?

MCENANY: He deleted it. The deletion speaks for itself. His repeated condemnations of hate speak for themselves, and this is a president who has repeatedly condemned hate and repeatedly encouraged for us all to come together. Yes?

QUESTION: Thank you, can -- did the president meet today with Senate Republican Leader McConnell about the future recovery aid package, and is there any sort of agreement on additional unemployment insurance or stimulus payments?

MCENANY: Yes, so I have no announcements with regard to his meetings, but what I would say is he did mention that in a phase four, he would be open to direct payments. On the point of unemployment insurance, one thing that he's concerned about is he does not want to see an incentive not to work.

An enhanced unemployment benefits that Senator Schumer has suggested would be an incentive for people not to get back to work and he wants to encourage people to get back to work. And at the same time, he's mentioned a payroll tax holiday, a big one for our workers. That helps those who are on the lowest end of the payroll, it would help the Americans who need it most. So those are some things he's talked about for phase four.

QUESTION: Hi, you used the word embers to describe the coronavirus, but yesterday, another all-time record of 47,000 cases, and four times this week, a new record. Why do you use the word embers when many people would say it's like a wildfire?

MCENANY: So I used the word embers because that is what the president has acknowledged that would happen around the country. You would see spikes across the country. He said, at time, you would see a fire across the country, embers, fires, but at the same time I would note the increase in cases that are -- the increase in testing is -- sixfold increase in testing, you identify more cases.

I would also note that Secretary Azar said that we've seen nationwide that fatalities at a two month low. So this is a different situation when those who are testing positive are younger. We have increased tests. We are aware where there are surges. It's why Dr. Birx is on the ground, but we believe we are equipped to handle what we see on the horizon.

QUESTION: So how does the president -- the president made a conscious decision to talk less about the virus. Town hall, Sean Hannity, someone mentioned it was only three minutes that he discussed it. He tweets about it far less often than he used to?

MCENANY: The president is not focused on talking, he's focused on action, and this administration has taken historic action with regard to the coronavirus. We have an excess amount of PPE, surge -- a huge amount of ventilators in the stockpile, things that could never be done, we were told, have been done under this administration, testing more than 600,000 a day.

This president has done a historic job with regards to the coronavirus.


QUESTION: Thank you.

The president yesterday tweeted that he is angry against China. Is anger against China in India also? So, India has banned 59 apps from China, including TikTok.

How -- does the president (OFF-MIKE) about it and what are his views on this?

MCENANY: So, with regard to India and China, we're closely monitoring the situation.

He is as well. Both India and China have expressed a desire to de-escalate and we support a peaceful resolution of the current situation, and he said that China's aggressive stance along the India-China border fits with the larger pattern of Chinese aggression in other parts of the world and these actions only confirm the true nature of the Chinese Communist Party.

QUESTION: Ban on TikTok, India banning the TikTok app?

MCENANY: No announcements on that, I would just point you to what Secretary Pompeo said earlier.


QUESTION: What will we expect the president to play in on Israel's plan to annex part of the West Bank and the Jordan Valley, and how much does this delay perhaps have to do with the concern about (OFF-MIKE) here in the United States who, of course, are really an important part of the presidents base in reelection?

MCENANY: Yes, so I have not spoken to him about that specific issue, but he's a great supporter of Israel and I would just leave it at that.

QUESTION: But, Kellyanne, there could be something this week, so I'm just wondering what the delay is and maybe you could weigh in. There are concerns this could be the final nail in the coffin on the Palestinian state. What is the president thinking about?

MCENANY: So no announcements on that front, and I won't get ahead of him on anything that would happen this week or beyond. Yes?

QUESTION: The president has said in this room that he wants to meet the Taliban leadership. Now that world leaders are coming here again, is that on the corral, is that going to happen soon? Is there a timetable?

MCENANY: So, again, I won't get ahead of the president on that. What the president wants is to see our troops come home from Afghanistan.

He has been on the record being against keeping a sustained presence in Afghanistan. He does not believe in foreign adventurism and wars that drag on. He believes the ultimate way to secure our troops is to bring them home.


QUESTION: Well, has the -- has the report of the Russian bounty for Taliban fighters affected that calculus?

MCENANY: That's unverified intelligence that's currently being assessed.


QUESTION: Hi. Thanks, Kayleigh.

The first question I have -- two questions.

The first is, on Monday, the president went after stripping racist names on buildings.

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