Trump's lawyers trip up Michael Cohen

Plus, a surprise from Clarence Thomas, and why this economy is nowhere near the '70s.

View in Browser 05.16.24     Enjoying this newsletter? Forward to a friend! They can sign up  here. Questions? Comments? what.matters@cnn.com   by Zachary B. Wolf : The latest Dramatic moment. The second day of the cross-examination and grilling of Michael Cohen in Donald Trump's hush money trial in New York included a dramatic moment that could prove pivotal, according to CNN's reporters in the courtroom.   Defense attorneys were able to confuse Cohen about a call he made to Trump's former bodyguard Keith Schiller. This particular call, they were able to show, had nothing to do with speaking to Trump about Stormy Daniels.   From CNN's Kara Scannell: "It was the most dramatic moment of the cross-examination. Cohen looks like he made up that one call after he saw some records form the prosecution and filled in the blank. It casts doubt on Cohen's memory of phone calls in 2016."    She added: "It's up to the jury to decide whether he made up this one call or all calls."   Here's how Cohen explained it in the afternoon, according to CNN's Jeremy Herb: "Even if he didn't recall the circumstances of every call, he remembers the calls themselves."   Read more updates from the day.   Important point. The prosecution has not called Schiller or Trump's imprisoned former CFO Allen Weisselberg. Both men play key roles in the narrative, and there are reasons they probably weren't called. What will the jury think?   Should Biden have pardoned Trump? Here's the argument from Utah GOP Sen. Mitt Romney: "Had I been President Biden, when the Justice Department brought on indictments, I would have immediately pardoned him," Romney told MSNBC's "The 11th Hour with Stephanie Ruhle." "I'd have pardoned President Trump. Why? Well, because it makes me, President Biden, the big guy and the person I pardoned a little guy." More.   Biden invokes privilege over Hur recordings. The White House already released transcripts of President Joe Biden's interview by special counsel Robert Hur. But they draw the line at handing over audio recordings. Now House Republicans are moving to hold Attorney General Merrick Garland in contempt of Congress.   On the one hand, if they have the transcripts, why do they need the audio? On the other hand, why doesn't Biden just release the audio? Maybe Biden's aides don't want it played in a loop in attack ads. Updates.   NFL seeks distance. Kansas City Chiefs kicker Harrison Butker recently warned graduates at Benedictine College about "diabolical lies" regarding women seeking careers. He believes the young women graduating are "most excited about your marriage and the children you will bring into this world."   It's ballooned into a thing because the NFL has been trying to appeal more directly to women as fans, and because of the power dynamic in Taylor Swift's relationship with Butker's teammate Travis Kelce. Read this analysis of the backlash.   CNN investigation. UCLA's pro-Palestinian encampment was attacked by counterprotesters. A review of video by CNN's investigative team identifies some of them. See the story.   Or watch a video version:       Louisiana map. The Supreme Court allowed a second majority-Black Louisiana congressional district, which will be in place for the coming election. But the decision, outside of regular order, was opposed by liberals on the bench. It's a short-term win but keeps a controversial practice in place. More.   Consumer Financial Protection Bureau. Also from the court: It ruled that that the federal watchdog created in response to the 2008 financial meltdown may continue to operate in its current form. It was a repudiation of wild opinions coming out of the 5th Circuit, which includes Louisiana, Mississippi and Texas. Conservative Justice Clarence Thomas wrote the majority opinion. Yes, that's right. Thomas wrote the majority. Sponsor Content by FinanceBuzz Four secret things to do if you shop on Amazon Do you shop on Amazon? If so, you might be missing out on huge savings and a chance to earn extra cash on every purchase you make. These hacks could help you save money, earn cash, and much more. : It's not even close to the 1970s Stagflation? Maybe. 1970s? Nope. Inflation has slowed but is still too high. The rip-roaring economy is showing some signs of slowdown. Those are two symptoms of stagflation, which laid the US low in the 1970s. But we're a long way from the long gas lines, unemployment and sky-high interest rates of that era.   This is from an analysis by Elisabeth Buchwald at CNN Business for the Nightcap newsletter:    Federal Reserve Chair Jerome Powell said any positive stagflation tests were false positives. "I don't see the stag or the 'flation," he told reporters at a press conference earlier this month after Fed officials voted to leave interest rates unchanged.   "I was around for stagflation. It was 10% unemployment. It was high single-digits inflation and very slow growth," he added, referring to stagflation in the 1970s after a spike in oil prices during the Arab oil embargo.   I, being a Gen Zer, can't speak to that period firsthand. But I agree with Powell nonetheless — the US economy is not experiencing stagflation. It may, however, be experiencing a different, far less serious condition: slackflation.   What is slackflation?   If you've never heard that term before, there's a good reason — I just coined it myself.   Slackflation is a condition that's bothersome enough that you'd text your mom about it and she'd tell you to go to urgent care. Then, you ignore her advice and either it goes away on its own or it gets a lot worse.   To use more economic lingo, slackflation is when inflation is sticky — but not out of control— and there's slack in the economy (nothing to do with the messaging app that has an incredible collection of emojis).   Economic slack, a term I unfortunately cannot take any credit for, broadly describes a situation where the economy isn't performing as well as it could be. The most widely recognized symptom of economic slack is a rising unemployment rate.   That's happening in the US per the latest jobs report. But it's not nearly at levels that would be cause for concern — the unemployment rate went up just a tenth of a percentage point in April to 3.9% from 3.8% in March. But that could change in the near future. : A political pardon Given that Trump has promised to pardon many of his supporters who were involved in the January 6, 2021, insurrection, it's worth looking at a shocking pardon out of Texas.   Gov. Greg Abbott expedited a review of the murder conviction of Daniel Perry, who drove into a Black Lives Matter protest in Austin, Texas, in 2020, and shot a protester, an Air Force veteran named Garrett Foster.   A jury in Texas convicted Perry, and he was given a prison sentence of 25 years for the murder.   But Abbott, citing the state's "Stand Your Ground" laws, responded to conservative backlash at the justice system and ordered the state's parole board to expedite a review of the sentence. The parole board recommended a pardon. Abbott granted it. It's an interesting example of the current state of the US justice system at work. Read more. : Pick of the Day Brought to you by CNN Underscored A crossbody bag is the perfect versatile accessory for everyday and travel needs More than just everyday essentials, crossbody bags are also travel MVPs. From sleek styles that transition effortlessly from the plane to date night, to high-tech options boasting anti-slash materials and secure locking mechanisms, these are our top picks. : What did you think of today's newsletter? Send your feedback to what.matters@cnn.com.   You are receiving this newsletter because you signed up for What Matters. To stop receiving this newsletter, unsubscribe or sign up to manage your CNN account   Learn more about the CNN app |  Get CNN web alerts  |  Sign up for a free CNN account   ® © 2024 Cable News Network. A Warner Bros. Discovery Company. All Rights Reserved. 1050 Techwood Drive NW, Atlanta, GA 30318