This is a rush transcript from "Special Report," July 17, 2020. This copy may not be in its final form and may be updated.

BRET BAIER, FOX NEWS ANCHOR: Good evening. Welcome to Washington, I'm Bret Baier.

Breaking tonight, it is shaping up as a record-setting weekend in the coronavirus pandemic. Many locations are reporting the highest infection numbers and the hospitalization so far in the outbreak.

On the national level, the U.S. fatality rate is at 3.9 percent according to Johns Hopkins. Down a tenth of a point from earlier this week.

Health officials from several states say counting the states have led to bad data and some inflated totals will explain that.

The Trump administration continues to emphasize increased testing equals higher numbers of cases. Testing is way up but the number of new cases on average is up a lot more, outpacing the testing. And the hospitalizations and deaths are also now taking up in several states.

Tonight, Dr. Anthony Fauci says state and local leaders should be as forceful as possible on requiring masks. We hear what President Trump told Chris Wallace about masks in just a moment.

First, Correspondent Casey Stegall starts us off tonight from Dallas. Good evening, Casey.

CASEY STEGALL, FOX NEWS CORRESPONDENT: Bret, good evening. The United States reported more than 77,000 new coronavirus cases on Thursday, that is the single highest number since the pandemic began. 18 percent of those cases come from the state of Florida while nearly 20 percent of them are right here in the Lone Star State.

(BEGIN VIDEOTAPE)

STEGALL: For the last eight days, more than 10,000 Texans have been hospitalized with coronavirus. Bed shortages have for some communities to get creative with where to house the sick. In Laredo, this Red Roof Inn is being converted into a medical center.

RAMIRO ELIZONDO, ASSISTANT FIRE CHIEF, LAREDO, TEXAS FIRE DEPARTMENT: We've received notice that we were granted and approved for an alternative care site. This care site is to be done at a local hotel.

STEGALL: The Florida logged 120 new deaths on Friday down from yesterday's all-time record of 156. But Dr. Anthony Fauci while speaking today with the U.S. Chamber of Commerce Foundation says now is the time to reassess practices in persistent hot spots.

DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: We really do need to take a look at what's going on and see if we can intensify the things we do to prevent the resurgences that we're seeing.

STEGALL: At the same time, some snafus were uncovered this week over public health data. Florida's Department of Health said smaller private labs were not reporting negative results leading to inaccurate numbers.

While in Texas, San Antonio's Metro Health District included probable cases with confirmed ones. Prompting the state to remove nearly 3,500 cases from its total.

UNIDENTIFIED MALE: The way the data is released all around the U.S. is a mess.

STEGALL: Meantime, the White House says it continues working closely with impacted areas, ensuring requests for supplies and PPE are met.

KELLYANNE CONWAY, WHITE HOUSE PRESS SECRETARY: This president speaks regularly to the governors who are calling him about these hot spots, about these surges, working very closely with them, but that's not everywhere.

STEGALL: Once the pandemic's epicenter, New York City is now poised to enter phase four of reopening next week. Museums, malls, indoor dining will remain shut down for the additional blocks of outdoor dining options will reopen in the city three days a week. Other outdoor activities like zoos and botanical gardens can open at 33 percent capacity.

MAYOR BILL DE BLASIO (D-NY), NEW YORK CITY: Production of movies, T.V. shows, that can proceed. The -- obviously, something that matters to a lot of us, sports coming back but again, without audiences.

(END VIDEOTAPE)

STEGALL: And tonight, reaction is coming in from the White House over Democratic claims that the Trump administration has blocked the CDC director from testifying next week on Capitol Hill at a committee meeting on school reopening plans.

The White House is saying that Dr. Redfield has testified four times over the last three months and that they, quote, need to their doctors focused on the pandemic, Bret.

BAEIR: Casey Stegall in Dallas. Casey, thanks.

President Trump says he does not think wearing a mask will solve the coronavirus outbreak but he is, quote, a believer in masks, and quote, masks are good, that from an interview.

Chris Wallace has an extensive exclusive interview with President Trump on "FOX NEWS SUNDAY". Chris joins us now with the preview. Good evening, Chris.

CHRIS WALLACE, FOX NEWS HOST: Good evening, Bret. We spoke with the president this morning at the White House for an hour about all the most pressing subjects facing the nation.

And obviously, topic one was the coronavirus. We talked about a lot of the issues that you just heard Casey mentioned, the surge in new cases, 75,000 in one day yesterday.

The whole question the president arguing that a lot of that is because of more testing, but while testing is up 37 percent, the new cases are up by 193 percent which would seem to indicate the virus is actually spreading.

We talked as well about opening schools and we talked about masks, the hot issue as to whether or not people should wear masks, here's our exchange.

(BEGIN VIDEO CLIP)

WALLACE: You wore a mask for the first time in public at Walter Reed this weekend. Question, the CDC says if everybody wore a mask, for four to six weeks, we could get this under control.

Do you regret not wearing a mask in public from the start and would you consider -- will you consider a national mandate that people need to wear masks?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: No, I want people to have a certain freedom and I don't believe in that, no. And I don't agree with the statement that if everybody wear a mask, everything could disappear.

Dr. Fauci said don't wear a mask, our surgeon general, terrific guys, said don't wear a mask. Everybody whose saying don't wear a mask, all of a sudden everybody's got to wear a mask. And as you know, mask cause problems too. With that being said, I'm a believer in masks because I think masks are good.

(END VIDEO CLIP)

WALLACE: Bottom line is the president said, he is not going to issue a national mandate on masks. He's going to leave it up to the individual governors in their states to decide how to proceed.

Another big issue that we talked about was the surge of violence in America's cities. And also, rising protests about the issue of racism and Police Departments. Here was my exchange with the president on the subject of violence in our urban centers.

(BEGIN VIDEO CLIP)

WALLACE: Deaths, up in New York, that's up in Chicago, shootings. How do you explain it and what are you going to do about it?

TRUMP: I explain it very simply by saying the Democrat run cities, they are liberally run, they are stupidly run.

WALLACE: Liberal Democrats have been running cities in this country for decade.

TRUMP: Poorly.

WALLACE: Why is it so bad right now?

TRUMP: They run it poorly, it was always bad but now it's gotten totally out of control and it's really because they want to defund the police and Biden wants to fund -- defund the police.

WALLACE: Sir, he does not.

TRUMP: Look, he signed a charter with Bernie Sanders --

WALLACE: It says nothing about defunding the police.

TRUMP: Oh really? It says, abolish; it says, defund. Let's go!

WALLACE: All right.

TRUMP: Get me the charter, please.

WALLACE: All right.

(END VIDEO CLIP)

WALLACE: Well, that caused an extended exchange were members of the president's staff brought in some of the key elements from the Bernie-Biden platform over a hundred pages of pretty liberal ideas. We went over a bunch of them but, guess what? He couldn't find any place where in that charter they talked about defunding the police or abolishing the police because there is none.

Biden has talked at various points about shifting some money from the police to other related functions like metal sir -- medal services and counseling. But there has not a case where Biden and Bernie agreed on defunding or abolishing the police.

We also talked about politics, we have a new Fox News poll, the president is the first to see that and we talked about Mary Trump's tell-all book, Bret. It's a pretty interesting interview. Gets heated at points and I got to say, it really got heated because we did it outside at the president's patio where I think that the humiture was about 100 degrees.

BAEIR: Yes, so I looked down, I heard it was outside. It was 95 degrees, 103 which is just lovely, balmy. You have enough powder on there?

WALLACE: Well, here is the thing, the president kept complaining and I said I wanted to do it inside, you were the one who said -- and he said, well, I wanted to make you sweat. We both sweat.

BAEIR: That's good. Well, it's going to be quite an interview to watch. Chris, thanks. Tune in "FOX NEWS SUNDAY" this weekend.

U.S. Supreme Court Justice Ruth Bader Ginsburg has been undergoing chemotherapy treatments for a recurrence of cancer. And while Justice Ginsburg continues working and doctors are seeing success in her treatment, the announcement today once again brought the issue of the Supreme Court and judicial nominations to the forefront, 15 weeks and a few days before the election.

Fox News chief legal correspondent, anchor of "FOX NEWS @ NIGHT" Shannon Bream is here with the latest. Good evening, Shannon.

SHANNON BREAM, FOX NEWS ANCHOR: Hi, Bret. Well, Justice Ginsburg is resting at home after being hospitalized earlier this week for a possible infection. Now, that seemed pretty routine but today we also learned that unrelated to that, Ginsburg has been undergoing chemotherapy and seeing success with her treatments.

Ginsburg has successfully battled both colon and pancreatic cancer in the past. This time around she says the treatments going well and it will continue moving forward.

She's remained fully engaged with her work during a very busy term and says she is, quote, fully able, her words, to continue doing so.

2016 exit polls showed us that both Clinton and Trump voters ranked to the Supreme Court near the top of the issues impacting their vote. And in this presidential election year, the president is touting his record when it comes to the federal bench.

Since his time as a candidate, he has made the federal bench a priority. And with the help of Senate Majority Leader Mitch McConnell, he's carried out a record setting pace in confirming some 200 judges to those lifetime post including two Supreme Court justices.

For the first time in decades, there are no open seats on the appellate bench, the circuit courts that sit just below the U.S. Supreme Court.

During his eight years, President Obama confirmed 55 judges to those courts. And in half the time, less than four years, President Trump has successfully seated 53. I asked McConnell about the breakneck pace.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R-KY): We'll leave no vacancy behind, (INAUDIBLE) confirming these young men and women to both circuit courts and district courts until the end of next year for sure. And if the American people give the president another term and we have the Senate, we're going to keep on doing it.

(END VIDEO CLIP)

BREAM: Well, the Supreme Court is technically on its summer break, the work continues with several emergency requests now pending including parties challenging various coronavirus restrictions and the federal executions which resumed this week for the first time in 17 years, Bret.

BAEIR: All right, Shannon, thank you.

Senate Intelligence Committee Chairman Marco Rubio wants a detailed report on what the government knows about UFOs. The Florida Republican pushing legislation that would force the director of National Intelligence to detail information about UFO origins, frequency, and potential threat to national security.

Earlier this year, the military released video of three encounters by Navy pilots that had been leaked online, this is not a joke story and we're following it.

Now, to the issue of whether your children should return to classrooms in the coming school year, and will they? President Trump is calling for schools to reopen on time with kids in classrooms. Texas is giving public schools permission to keep campuses closed for more than five million students well into the fall.

California's governor also laying out strict guidance making on-campus instruction unlikely, at least unlikely this year.

Tonight, we look at one -- how one school district in suburban Chicago is dealing with the situation. Correspondent Matt Finn reports tonight from Naperville, Illinois.

(BEGIN VIDEOTAPE)

MATT FINN, FOX NEWS CORRESPONDENT: Down to the wire for many school districts nationwide, deciding whether to return to class during the pandemic.

NICOLE JARRELL, PARENT: Each day our children are taking risks by riding a bike, crossing the street and I just feel like, this is worth the risk?

FINN: This suburban Chicago mother is sending her three children back to school.

JARRELL: My children learn best having a teacher in front of them.

FINN: Naperville Central High School has 2,700 students in an affluent community. Students can choose online or return for a hybrid year.

Every morning, parents must confirm their children have no fevers or symptoms, classes roughly every other day. Many other safety precautions like rearranged classrooms.

This is what a classroom normally looks like, you can see the desks are clustered and facing each other to encourage collaboration, that will have to end.

And the district also tells us that soft surfaces like this chair and throw carpet will have to be taken out because they can't be easily sanitized on a daily basis.

And this is what the modified classroom looks like, the desks are all six feet apart, they're facing one direction. No collaboration.

The superintendent says, their model was crafted on feedback from parents, 100 educators and state guidelines.

DAN BRIDGES, SUPERINTENDENT, NAPERVILLE ILLINOIS: There may be a need to go back-up phase, so we also have to be flexible and know that -- you know, we can go fully online if we have to.

FINN: In Los Angeles, no return to class this fall. Today, Chicago's mayor announced the city's plans for most students to attend class two days a week, some full-time. As the White House insists students go back this fall.

KAYLEIGH MCENANY, WHITE HOUSE PRESS SECRETARY: Devastating consequences when it's perfectly safe for them to go to school as emphasized by many medical experts.

FINN: In Naperville, Illinois, Matt Finn, Fox News.

BAEIR: Presumptive Democratic nominee Joe Biden calling for as much as $30 billion in emergency funding for school reopening. Biden says he will establish guidelines based on science, not political pressure.

The Pentagon is banning displays of the Confederate flag on military installations. The carefully worded policy does not use the word ban or mention that specific flag. Officials describe it as a creative way to bar the flags display without openly contradicting or angering President Trump who has defended people's rights to display it based on free speech.

Another night, another clash between protesters in Oregon and federal officers who once again used tear gas and nonlethal munitions. The administration is calling the demonstrator violent anarchist and blaming state and local officials for not ending the violence. National correspondent William La Jeunesse shows us tonight.

(BEGIN VIDEOTAPE)

WILLIAM LA JEUNESSE, FOX NEWS NATIONAL CORRESPONDENT: A standoff in Portland. As the Trump administration sends in more police, protests grow. With agents firing tear gas again Thursday to disperse a crowd that advanced on the federal courthouse. The conflict now becoming even more political.

CHAD WOLF, ACTING SECRETARY OF HOMELAND SECURITY: Local and state leadership, they're fostering an environment where it's very difficult for law enforcement to do their job.

LA JEUNESSE: Acting DHS Secretary Chad Wolf, in Portland yesterday, says he reached out to democrats Mayor Ted Wheeler and Governor Kate Brown, only to be told to leave.

"I told Acting Secretary Wolf that the federal government should remove all federal officers from our streets," said Brown. "His response showed me he is on a mission to provoke confrontation for political purposes."

That's a reversal from 2016 when Brown welcomed federal troops to remove armed right-wing demonstrators who took over a wildlife refuge. Saying, "Federal authorities must move quickly to end the occupation and hold all wrongdoers accountable."

In the last six weeks, Portland police arrested hundreds for assault and vandalism.

TRUMP: Portland was totally out of control and --

LA JEUNESSE: President Trump is using Portland to underscore a message of law and order, ridiculing Democrat-run cities for runaway violence.

KEN CUCCINELLI, ACTING DEPUTY SECRETARY, DEPARTMENT OF HOMELAND SECURITY: Let's not kid ourselves. These aren't protesters, these are criminals.

UNIDENTIFIED FEMALE: Use your words what are you doing?

LA JEUNESSE: The Feds are now being accused of using unidentified officers in unmarked vehicles to arrest protesters.

(END VIDEOTAPE)

LA JEUNESSE: Moments ago, CBP said the individual detained in this now- viral video was suspected assault or destruction of property. They claimed to have acted quickly because of an approaching crowd.

They also claimed the agents wore CBP patches, but did not display their names out of fear, they, like others in law enforcement would be revealed publicly and harassed at home. Bret.

BAIER: William, thank you.

Up next, the Trump campaign praised for the evangelical vote in this November's election. So, where does it stand tonight? We'll tell you.

First, here is what some of our Fox affiliates around the country are covering tonight. Fox 5 in New York, with the detention of a suspect in the killing of a 33-year-old tech entrepreneur who was found dismembered inside his luxury Manhattan condo.

A law enforcement official tells the Associated Press, the person in custody had worked as Fahim Saleh's personal assistant.

Fox 31 in Denver, as a local newspaper reports a southwest Colorado resident has become the first confirmed case of bubonic plague in five years after exposure to sick squirrels. No word what that exposure was. Health officials are telling the public that only normal precautions are needed.

And this is a live look at Chicago from Fox 32, one of the big stories there tonight. Democratic state House Speaker Michael Madigan is implicated in a years-long bribery scheme.

Federal prosecutors say utility ComEd will pay $200 million to end the federal criminal investigation that involves Madigan. Illinois Democrat Governor J.B. Pritzker, says Madigan must resign if the allegations are true. Madigan says he has done nothing criminal or improper.

That's tonight's live look "OUTSIDE THE BELTWAY" from SPECIAL REPORT. We'll be right back.

(COMMERCIAL BREAK)

BAIER: The owner of the Washington NFL franchise still called the Redskins tonight. Says, word about allegations of sexual harassment by members of his organization has strengthened his resolve to set a new culture and standard for the team.

Dan Snyder is reacting to a report in the Washington Post we brought you last night, detailing allegations from 15 former employees and two reporters. Snyder, says the law firm he has hired is empowered to do a full unbiased investigation and make any, and all requisite recommendations.

Three members of the organization named in the report have left their positions in recent days. Snyder was not among those accused.

Former middle school principal Jamaal Bowman has toppled 16-term Democrat Eliot Engel in New York's Democratic congressional primary. Bowman was backed by Congresswoman Alexandria Ocasio-Cortez. Many votes cast by mail in this race have yet to be counted, but an Associated Press analysis of absentee ballots returned so far indicates bowman's lead is too large for Engel to overcome.

Presidential election could turn on a number of issues, of course, or voting blocks. In tonight's "FOCUS ON FAITH", the evangelical vote. Republicans, obviously want to solidify it. Democrats are now looking at a window of opportunity to seize it or part of it.

Here is religion correspondent Lauren Green.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: When we unite and turn our faith into action, we have tremendous influence.

LAUREN GREEN, FOX NEWS CHIEF RELIGION CORRESPONDENT: It's a message to evangelical Christians to bring their faith to the voting booth this November. Our Church Votes is a nationwide campaign targeting what is a huge voting bloc in this country.

JASON YATES, CHIEF EXECUTIVE OFFICER, MY FAITH VOTES: We want to ask every church and pastor to hold at least one voter registration drive.

GREEN: Yates, says as many as 25 million evangelicals did not vote in 2016. And one of the campaign's goals is to register, at least, a million in key swing states to bring their biblical values to some 100,000 federal state and local elections this fall.

The campaign is providing resources like registration guides, party platforms, promotional resources, and sermon outlines, and themes.

UNIDENTIFIED MALE: Evangelicals for Trump. My name --

GREEN: Although the campaign is touted as nonpartisan, evangelicals have traditionally been the GOP's strongest support. Nearly 80 percent of white evangelicals are credited with helping Donald Trump win the White House in 2016.

But a recent Pew survey found that his approval rating among evangelicals has slipped six points since April, down from 78 to 72 percent. That decline indicates to the Biden campaign that some of their votes may be up for grabs.

SEN. CHRIS COONS (D-DE): I think there are a wide number of evangelicals of a lot of different backgrounds in the United States open to looking at a Biden presidency.

GREEN: Critics, however, warned there is a slippery slope when churches are politically active.

RACHEL LASER, PRESIDENT, AMERICANS UNITED FOR SEPARATION OF CHURCH AND STATE: And no one wants their church to become a pack. You know it's not a good thing for the church, and it's not a good thing for elections.

(END VIDEOTAPE)

GREEN: A federal law allows churches to engage in politics just as long as they don't endorse any one candidate or party. Bret.

BAIER: Lauren, thank you.

Up next, big problems for small businesses as the coronavirus roars back.

First, "BEYOND OUR BORDERS" tonight. Moscow police raid the offices of the Foundation for Fighting Corruption, an organization founded by a major Russian opposition politician. The man is being investigated for defamation after criticizing people featured in a video promoting the constitutional reform extending President Vladimir Putin's rule.

Former Ambassador Bill Richardson fails to secure the release of American citizens held as prisoners in Venezuela. Richardson's foundation reports the former ambassador went to Venezuela on a humanitarian mission at the request of the prisoner's families.

The detainees include two former Green Berets implicated in a failed coup and six oil company executives.

European Union leaders begin a summit in Brussels with mask issues. The face-covering of the Bulgarian prime minister slipped, prompting a reaction from the German Chancellor Angela Merkel today.

Meantime, other leaders tried out various versions of the elbow bump. World leaders in action there.

Just some of the other stories, "BEYOND OUR BORDERS" tonight. We'll be right back.

(COMMERCIAL BREAK)

BAIER: A Russian drug maker has signed a deal for the production of a COVID-19 vaccine being developed by British pharmaceutical giant AstraZeneca and Oxford University. Russian officials saying the agreement shows Russia has no need to steal the data. This week, the U.S., Britain, and Canada accused Moscow of trying to hack vaccine information.

Stocks were mixed today. The Dow lost 63, the S&P 500 gained nine, the Nasdaq was up 29. For the week, the Dow finished ahead about two-and-a- quarter percentage points. The S&P 500 up one-and-a-quarter. The Nasdaq lost just over one.

Many small business owners are experiencing big difficulties as the coronavirus still grips the nation. Treasury Secretary Steven Mnuchin told a House panel today lawmakers should consider forgiving all of the coronavirus small business loans, and that not all businesses received the help they need. Edward Lawrence of FOX Business shows us from Bethesda, Maryland, why many companies still face significant challenges.

(BEGIN VIDEOTAPE)

EDWARD LAWRENCE, FOX BUSINESS: As activity returns, downtown Bethesda, Maryland, closed a major street, allowing spacing. Laura Correa can only watch. Under the roles her micro spa must remain closed.

LAURA CORREA, BETHESDA, MARYLAND, SPA OWNER: It went from being full force, fully booked, working every single day, almost even too much, and to absolutely nothing. March 15th I had to close my doors, I had to shut everything down.

LAWRENCE: She applied for and was denied a Paycheck Protection Program loan, forcing her to lay off her one employee and adapt.

CORREA: I set up my eCommerce on my website which I didn't have before. I don't know, I just never had that. And I'm like, wait, this might be a good time. I focused more on my retail and skincare.

LAWRENCE: With revenue 50 percent of what it was and an understanding landlord, Correa is hopeful she can reopen soon. Restaurants on her blog also adopting.

RICHARD FANCY, BETHESDA, MARYLAND, RESTAURANT GENERAL MANAGER: Thank you for calling Olazzo Bethesda, how may I help you?

LAWRENCE: Olazzo General Manager Richard Fancy let go most of the staff, cut back hours to one shift, and converted the restaurant to take out only.

FANCY: For us to stay in business, we have to be constantly coming up with new ideas to drive sales, bring people in and be efficient.

LAWRENCE: The National Bureau of Economic Research says the average small business has $10,000 in monthly expenses and less than one month cash reserves. It's a more dire story for Matty Bullitt who owns three bars in Orlando, Florida. The state forced him to close. He was allowed to open, and then forced him to close again.

MATTY BULLITT, ORLANDO, FLORIDA, BAR OWNER: So we can't tell our staff when they can come back to work and when they can start making some money again. The unknown is the worst part of it all.

LAWRENCE: The unknown of which businesses will be able to hold out, which employees will have a job to return to.

(END VIDEOTAPE)

LAWRENCE: It's estimated the pandemic wiped out 110,000 businesses across the country and counting. The ones that are left praying to reopen fully, forced to adapt or close forever. Back to you, Bret.

BAIER: Edward Lawrence, in Bethesda. Edward, thanks.

Now a very happy update from overseas, a story we closed with back in April. It involves a very special honor for a very special man. Senior foreign affairs correspondent Greg Palkot shows us tonight from London.

(BEGIN VIDEOTAPE)

GREG PALKOT, FOX NEWS SENIOR FOREIGN AFFAIRS CORRESPONDENT: Some good news in a not so great time -- 100-year-old British World War II veteran Captain Tom Moore met 94-year-old Queen Elizabeth II at Windsor Castle today. She made him a knight, Sir Tom Moore, using a sword belonging to her father King George the Sixth, all for his fundraising efforts for Britain's National Health Service during the height of the COVID-19 pandemic, people pledging money as he did 100 laps, or 82 feet, around his garden, using his walker, leading up to his 100th birthday in April. It became an online and national sensation, raising the equivalent of $40 million, prompting Prime Minister Boris Johnson, himself a victim of the virus, to nominate Moore for the knighthood.

BORIS JOHNSON, BRITISH PRIME MINISTER: Your heroic efforts have lifted the spirits of the entire nation.

PALKOT: The queen today happily complied with her first official event since the lockdown.

QUEEN ELIZABETH II, UNITED KINGDOM: You've done so much for everybody recently. What an amazing amount of money you raised.

PALKOT: Sir Tom was grateful for the generosity of the British people and very impressed with the Queen.

SIR TOM MOORE, WORLD WAR II VETERAN: The money is very useful, but you have only one queen, and to be getting a message from the queen, there is no value that can be placed on that.

PALKOT: Another title going with its honorary colonel rank in the British military, and honorary team member of British football great David Beckham.

(END VIDEOTAPE)

PALKOT: The queen also reportedly told Sir Tom that 100 was a great age, two symbolizes of the resolve of this country, helping folks here to keep calm and carry on through some difficult days. Bret?

BAIER: Good message in this environment. Greg, thank you.

President Trump and Chris Wallace engage in a spirited interview on a host of topics. We'll get the action from the panel when we come back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CHRIS WALLACE, FOX NEWS ANCHOR: You wore a mask for the first time in public at Walter Reed this weekend. Question, the CDC says if everybody were a mask for four to six weeks, we could get it under control. Do you regret not wearing a mask in public from the start? And would you consider, will you consider a national mandate that people need to wear masks?

TRUMP: No. I want people to have a certain freedom, and I don't believe in that, no. And I don't agree with the statement that if everybody wear a mask everything disappears. Dr. Fauci said don't wear a mask. Our surgeon general, terrific guy, said don't wear a mask. Everybody was saying don't wear a mask. All of a sudden, everybody has got to wear a mask. And as you know, masks cause problems too.

With that being said, I'm a believer in masks. I think masks are good.

(END VIDEO CLIP)

BAIER: Chris Wallace with an interview, exclusive interview with President Trump, a hot interview, literally. It was 103 in the humidity here in D.C. today outside at the White House. A lot of topics there. Meantime the polling on the issue of the coronavirus, the Real Clear Politics average on the president's handling is upside down. He's underwater by about 18 points in the handling.

But when you look at the question asked in the average of polls about the handling of the economy, it is the other way around, when it comes to 49- 47.2.

With that, let's bring in our panel, former Tennessee Congressman Harold Ford Jr., currently chairman of RX Saver, Mollie Hemingway, senior editor at "The Federalist," and Byron York, chief political correspondent for the "Washington Examiner." Mollie, will this mask debate become some political football in coming weeks? It's already kind of been there.

MOLLIE HEMINGWAY, SENIOR EDITOR, "THE FEDERALIST": First off, it is a good thing that the president said he would not issue a mandatory mass order across the country because that would not be constitutional, and there's some question about whether these mandates are even constitutional at the state level. There's no agency that has been given constitutional authority to put forth and enforce such a mandate. That's generally a good thing.

I do think it speaks to a bigger issue about how Americans are responding to the ongoing situation of coronavirus. We are a free country. That mean that we are going to do things and handle things differently than other less free countries are. China handled things by welding citizens into their apartments and doing other very drastic measures. That's not going to work in the country because of our freedom.

But I do think that there are a lot of people who seem to think that we should have a much greater lockdown, and it seems like Joe Biden is one of those people who thinks there should be a greater lockdown. I think it would be good to ask him how he would handle it should he be elected. And we're not going to have a vaccine for a long time. Would he upon election shut down the economy for three to six months or until a vaccine is in order, or what exactly is his plan to do things differently given that he does not support our current approach of dealing with the virus, understanding that it's bad, and also understand there's a limit to how much we can do?

BAIER: Clearly, COVID is going to be a big part of this election. speaking of vaccines, the HHS secretary today on FOX Business.

(BEGIN VIDEO CLIP)

ALEX AZAR, HEALTH AND HUMAN SERVICES SECRETARY: I don't know that we'll see that by September, Stuart, but we've now got investments in four major vaccine platforms. More of them are on the way. One of them is going to be entering phase three clinical trial in just a couple of weeks, and more very soon thereafter to follow. We'll get that data. And we believe it is very credible to be thinking of the high tens of millions of doses of approved vaccine for use later this year with hundreds of millions of vaccines earlier next year. Obviously, we're going to insist it be safe and effective.

(END VIDEO CLIP)

BAIER: There's just questions here, before you get to vaccine, the possibility, Harold, that you could get a couple therapeutics that change the dynamics and maybe take some of the fear out of the hospitalizations and the deaths that we've seen tick up.

HAROLD FORD JR. (D) FORMER TENNESSEE REPRESENTATIVE: You can only hope. I'm encouraged when I hear the HHS secretary talk that way as well as Dr. Fauci and others. I'll say this. People who wear masks in cities and states that are wearing masks are experiencing much different outcomes and, for that matter, much different virus infection and hospital and death rates in other cities.

I live in the New York area. One of the things that the governor of New York did as well as the New Jersey and Connecticut governors here was to really take this thing very seriously and take efforts to really stop things and slow things down.

Look, this fight about wearing masks, not wearing masks, shutting down the economy, no one wants to shut down the economy. No one wishes for commerce to come to a halt. But for anyone to suggest, in the face of all the data that we have, that wearing masks, social distancing has not worked or is not working I think is ignoring some really harsh and cold realities.

BAIER: Obviously, the New York governor has his own criticisms about putting the COVID patients into the nursing homes, but that's a separate issue. But let me ask Byron -- this is Dr. Anthony Fauci on reopening schools.

(BEGIN VIDEO CLIP)

FAUCI: We will get back to the schools, and we will ultimately get back to normal with every other aspect of our lives. You have to have a healthy business community. Take a look at those guidelines and follow them, because the public health apparatus shouldn't be looked upon as the obstacle in the way of opening. It should be a gateway, a vehicle, and a facilitation of opening.

(END VIDEO CLIP)

BAIER: Byron, I've listened to him over the past three days. I hear it as possible, right. I hear it as schools, you can do it. You have to figure out a way do it. Other people hear it differently. And it's interesting just how you hear it.

BRYON YORK, CHIEF POLITICAL CORRESPONDENT, "WASHINGTON EXAMINER": I have to say, I don't know exactly what he was saying just then. But look, education is clearly a state and local issue. We've seen a lot of experts talk about that schools should be able to open, they would send their own children to schools. You saw a report earlier tonight about changing the configuration of classrooms to discourage the spread of disease. And also, just the enormous social, personal, economic costs of keeping children out of school for some long period starting in the fall.

So we have this enormous concern right now with the growing number of cases. What we have yet to see is whether it's going to return to the terrible days of April. I think a lot of people are rightly traumatized by all those days, but back then New York has had a death per million rate of 1,672. Texas today has a death per million rate of 133. We don't know where this is going to go.

BAIER: We'll follow it.

Next up, the Friday Lightning Round, judicial nominees, we'll see what we get to. Winners and Losers will be in there.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CHARLES KRAUTHAMMER, SYNDICATED COLUMNIST: The one thing holding back people who have resisted supporting Trump, or at least the major thing, is the fear of what a Clinton presidency would do to the Supreme Court and how it would change it for a generation. A significant number of conservatives, he gives cover, Trump gives covers, allows some conservatives who held back to come out and support him and say now I'm not worried so much about the Supreme Court. And I think that's going to be a very important step. It starts this sort of cascade of who is going to come out and support Trump.

So this just shows you how absolutely critical I think more than any other time that I can remember in the last 30 years the Supreme Court is going to be as important an issue as ever.

(END VIDEO CLIP)

BAIER: The late, great Charles Krauthammer twice in one week. We decided to go back to the archives to hear that prior to 2016. This on the day we heard news from Justice Ruth Bader Ginsburg, "I am tolerating chemotherapy well and am encouraged by the success of my current treatment. I have often said I would remain a member of the Court as long as I can do the job full steam. I remain fully able to do that." The word is very successful as far as that treatment goes. The issue of the Supreme Court in the election, judicial nominees in this election, how important. Back with the panel. Mollie?

HEMINGWAY: Any time you're so concerned about the health of a single member of the Supreme Court, it speaks to help powerful the court has become and it has turns into more of a nine-person legislature than a court of law. But Charles could not have been more right or prescient in that analysis. It was important not just for establishment Republicans and President Trump promised to nominate justices who would be different than the type of justice that Hillary Clinton would nominate and judges in general, but it was also very important for the average Republican voter. Something like one in four Republicans -- or voters for Trump said that they voted for him because they cared about the Supreme Court. It will continue to be that big of an issue this year.

BAIER: Not only the Supreme Court, but all the judicial nominees that actually this president has gotten through. It's a big number that he will probably tout on the trail.

We're going to take a trip down to Candidate Casino, the V.P. version for Joe Biden. Harold Ford Jr., you've got $100 of chips. Where are you going?

FORD: I put $35 on Susan Rice who I think is emerging for so many reasons. She is amongst the smartest, most thoughtful strategic thinkers in our party. I think Elizabeth Warren is someone they continue to consider. And Tammy Duckworth and Kamala Harris round out, all of them bringing an ability to help him win and help him govern and help him manage Congress, which will be one of the great challenges for whomever is elected president.

BAIER: Quickly, Byron, your $100?

YORK: I think the big question continues to be whether the Democratic Party in today's atmosphere will accept an all white ticket. So for that reason I've always been high on Kamala Harris, have her $40, Elizabeth Warren seems to be hanging in there with $20, and Tammy Duckworth and Val Demings with $15 each, and Michelle Lujan Grisham at $10, still in there.

BAIER: OK, Mollie?

HEMINGWAY: I agree with Byron that there is a strong case this year for black women, and so I have $50 on Kamala Harris, $25 on Val Demings out of Florida, $15 for Keisha Bottoms, the mayor of Atlanta who is dealing with so many issues down there, $10 in honor of Charles, again, on wine, women, and song.

BAIER: Two Charles hat-tips.

All right, we only have one winner and loser. We're going to go to Harold Ford Jr. I just spot the dial. It landed on you. Winner and loser?

FORD: Bill Conner, a fella who lost his daughter Abbey, took a 2,600-mile bicycle journey and went through Louisiana, a young fella, who got his daughter's heart. He hugged him and it reminded you of the goodness of America seeing that picture.

BAIER: That's a winner. What's your loser?

FORD: My loser is the people who are anti-Fauci-ers. I think that if we don't take the science seriously, if we don't understand and listen closely to what they're saying, I think we'll find ourselves having to lockdown, which I don't want to see us lock down again, but we may be headed in that direction.

BAIER: I'll give more Winner and Loser time to the other two panelists next time. Thanks, guys. When we come back, "Notable Quotables."

(COMMERCIAL BREAK)

BAIER: Finally tonight, it is Friday, and you know what that means -- "Notable Quotables."

(BEGIN VIDEO CLIP)

FAUCI: It is a bit bizarre. I don't really fully understand it.

ADM. BRETT GIROIR, HEALTH AND HUMAN SERVICES ASSISTANT SECRETARY: I respect Dr. Fauci a lot, but Dr. Fauci is not 100 percent right.

UNIDENTIFIED FEMALE: Why are African Americans still dying of the hands of a law enforcement in this country?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: So are white people. More white people, by the way, more white people.

UNIDENTIFIED MALE: They just out of nowhere just start shooting at the ground, shooting the pepper rounds.

UNIDENTIFIED MALE: There is no situation in which it's acceptable to attack a police officer, period.

UNIDENTIFIED FEMALE: It is not acceptable for schools not to reopen.

UNIDENTIFIED MALE: Is very dangerous and unacceptable to go back to school right now.

JOE BIDEN (D), PRESIDENTIAL CANDIDATE: It has gotten bad enough that even Donald Trump finally decided to wear a mask in public.

TRUMP: We want to get rid of this mess that China sent us.

UNIDENTIFIED MALE: I think the world will absolutely make them pay a price.

UNIDENTIFIED MALE: It isn't everybody who gets the chance to see the Queen, is it? I think it's going to be absolutely marvelous for me.

UNIDENTIFIED FEMALE: These teams name their teams out of strength, not weakness.

TRUMP: I'm getting rave reviews for what I did for Roger Stone.

REP. ADAM SCHIFF (D-CA): This should be offensive to you if you care about the rule of law.

UNIDENTIFIED MALE: They wanted me to be the ham in their ham sandwich.

REP. NANCY PELOSI (D-CA): What does he do buy say I've got beans on my desk, and that's what people cover.

TRUMP: My hair, I don't know about you, but it has to be perfect. Perfect.

(LAUGHTER)

(END VIDEO CLIP)

BAIER: One week in Washington, D.C.

Thanks for inviting us into your home tonight. That is it for this SPECIAL REPORT, fair, balanced, and still unafraid. It's been a wild week.

Don't forget, Chris Wallace interviews President Trump on "FOX News Sunday." Check your local listings. I can promise you it is one worth watching.

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