Documents show top White House officials buried CDC report on how to reopen

The documen was researched and written to help faith leaders, business owners, educators, and state and local officials as they begin to reopen.

Documents show top White House officials buried CDC report on how to reopen

The decision to shelve detailed advice from the nation’s top disease control experts for reopening communities during the coronavirus pandemic came from the highest levels of the White House, according to internal government emails obtained by The Associated Press.

The files also show that after the AP reported Thursday that the guidance document had been buried, the Trump administration ordered key parts of it to be fast-tracked for approval.

The trove of emails show the nation’s top public health experts at the Centers for Disease Control and Prevention spending weeks working on guidance to help the country deal with a public health emergency, only to see their work quashed by political appointees with little explanation.

The document, titled “Guidance for Implementing the Opening Up America Again Framework,” was researched and written to help faith leaders, business owners, educators and state and local officials as they begin to reopen. It included detailed “decision trees,” or flow charts aimed at helping local leaders navigate the difficult decision of whether to reopen or remain closed.

White House spokeswoman Kayleigh McEnany said Friday that the documents had not been approved by CDC Director Robert Redfield. The new emails, however, show that Redfield cleared the guidance.

This new CDC guidance — a mix of advice already released along with newer information — had been approved and promoted by the highest levels of its leadership, including Redfield. Despite this, the administration shelved it on April 30.

As early as April 10, Redfield, who is also a member of the White House coronavirus task force, shared via email the guidance and decision trees with President Donald Trump’s inner circle, including his son-in-law Jared Kushner, top adviser Kellyanne Conway and Joseph Grogan, assistant to the president for domestic policy. Also included were Dr. Deborah Birx, Dr. Anthony Fauci and other task force members.

Three days later, CDC’s upper management sent the more than 60-page report with attached flow charts to the White House Office of Management and Budget, a step usually taken only when agencies are seeking final White House approval for documents they have already cleared.

The 17-page version later released by The AP and other news outlets was only part of the actual document submitted by the CDC, and targeted specific facilities like bars and restaurants. The AP obtained a copy Friday of the full document. That version is a more universal series of phased guidelines, “Steps for All Americans in Every Community,” geared to advise communities as a whole on testing, contact tracing and other fundamental infection control measures.

Redfield weighed in publicly for the first time Saturday, issuing a statement that apparently contradicts his internal emails, and supports the White House assertion that he had not formally approved the guidance.

He said in the statement that the CDC guidance was in draft form and had not been vetted fully. “This is an iterative effort to ensure effective, clear guidance is presented to the American people. I had not seen a version of the guidance incorporating interagency and task force input and therefore was not yet comfortable releasing a final work product.”

But on April 24, Redfield again emailed the guidance documents to Birx and Grogan, according to a copy viewed by The AP. Redfield asked Birx and Grogan for their review so that the CDC could post the guidance publicly. Attached to Redfield’s email were the guidance documents and the corresponding decision trees — including one for meat packing plants.

“We plan to post these to CDC’s website once approved. Peace, God bless r3,” the director wrote. (Redfield’s initials are R.R.R.)

Redfield’s emails contradict the White House assertion Thursday that it had not yet approved the guidelines because the CDC’s own leadership had not yet given them the green light.

Two days after his email to Birx and Grogan, on April 26, the CDC still had not received any word from the administration, according to the internal communications. Robert McGowan, the CDC chief of staff who was shepherding the guidance through the OMB, sent an email seeking an update. “We need them as soon as possible so that we can get them posted,” he wrote to Nancy Beck, an OMB staffer.

Beck said she was awaiting review by the White House Principals Committee, a group of top White House officials. “They need to be approved before they can move forward. WH principals are in touch with the task force so the task force should be aware of the status,” Beck wrote to McGowan.

The next day, April 27, Satya Thallam of the OMB sent the CDC a similar response: “The re-opening guidance and decision tree documents went to a West Wing principals committee on Sunday. We have not received word on specific timing for their considerations.

“However, I am passing along their message: they have given strict and explicit direction that these documents are not yet cleared and cannot go out as of right now — this includes related press statements or other communications that may preview content or timing of guidances.”

According to the documents, CDC continued inquiring for days about the guidance that officials had hoped to post by Friday, May 1, the day Trump had targeted for reopening some businesses, according to a source who was granted anonymity because they were not permitted to speak to the press.

On April 30 the CDC’s documents were killed for good.

The agency had not heard any specific critiques from either the White House Principals Committee or the coronavirus task force in days, so officials asked for an update.

“The guidance should be more cross-cutting and say when they should reopen and how to keep people safe. Fundamentally, the Task Force cleared this for further development, but not for release,” wrote Quinn Hirsch, a staffer in the White House’s office of regulatory affairs (OIRA), in an email to the CDC’s parent agency, the Department of Health and Human Services.

CDC staff working on the guidance decided to try again.

The administration had already released its Opening Up America Again Plan, and the clock was ticking. Staff at CDC thought if they could get their reopening advice out there, it would help communities do so with detailed expert help.

But hours later on April 30, CDC’s Chief of Staff McGowan told CDC staff that neither the guidance documents nor the decision trees “would ever see the light of day,” according to three officials who declined to be named because they were not authorized to speak to reporters.

The next day, May 1, the emails showed, a staffer at CDC was told “we would not even be allowed to post the decision trees. We had the team (exhausted as they are) stand down.”

The CDC’s guidance was shelved. Until May 7.

That morning The Associated Press reported that the Trump administration had buried the guidance, even as many states had started allowing businesses to reopen.

After the story ran, the White House called the CDC and ordered them to refile all of the decision trees, except one that targeted churches. An email obtained by the AP confirmed the agency resent the documents late Thursday, hours after news broke.

“Attached per the request from earlier today are the decision trees previously submitted to both OIRA and the WH Task Force, minus the communities of faith tree,” read the email. “Please let us know if/when/how we are able to proceed from here.”

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Why the stock market is up, even though all the economic data is down

Markets have risen steadily in the past month, with the S&P 500 up over 6% since early April.

Why the stock market is up, even though all the economic data is down

As unemployment rises, so does…the stock market?

It’s an equation that might not make much sense to market observers, but some strategists suggest it might not be as crazy as it sounds.

Markets rose nearly 2% on Friday, even as the Labor Department announced a record 20.5 million jobs were lost last month, as the unemployment rate jumped to 14.7% from 4.4%. However, unemployment data is considered a lagging indicator—meaning that it’s capturing data that’s already behind us.

Meanwhile, “the markets are always, always forward-looking, and the markets are trying to move ahead of the economy,” Randy Frederick, the vice president of trading and derivatives at Charles Schwab, tells Fortune.

Markets have risen steadily in the past month, with the S&P 500 up over 6% since early April.

Those like Mark Hamrick, chief economic analyst at Bankrate.com, point out that markets have long been mulling the worst case scenario in job data—and have adjusted accordingly: “We knew even upon release of the March employment report, where the unemployment rate rose from 3.5% to 4.4%, that this month was coming,” he tells Fortune. “There had to be the reckoning of disastrous statistics reflecting the real world, [and] we’ve had plenty of time to adjust for this reality.”

Others like Frederick note that “the greatest explanation” for the market’s recent resilience is “probably just the fact that the Fed, economists, and market analysts have done a pretty good job of trying to prepare everyone for these numbers being catastrophically large, being depression-level peaks or troughs,” he argues. “People have heard that again and again enough that, no matter how huge they are, they don’t react negatively as a result.” One bright sign: he points out that a large portion, over 18 million people in April, reported being on “temporary layoff”—a potentially positive sign that employment could rebound in the future.

Continued Fed support

One big reason analysts point to for the markets’ steady rise from its lows has been the unwavering, everything-and-the-kitchen-sink support of the Fed and central banks.

The Fed’s recent measures, which include rounds of quantitative easing, new programs, and rate cuts, have given investors plenty of support and security in the markets. “I’ve been calling this the ‘blank check Fed,'” Frederick laughs. “Investors understand that the Federal Reserve and other central banks have their backs,” Hamrick says.

Reopening the economy is in sight

To wit, some states are starting to slowly reopen, flushing the markets with new hope that the economy will snap back and jobs will be restored. “The market knows that the job losses are self-inflicted due to the widespread shutdowns,” Bleakley Advisory Group chief investment officer Peter Boockvar told CNBC on Friday. “Thus, now that we are beginning the reopening process the market assumes many of these people will hopefully get hired back over the coming months and quarters.”

Some states including Florida have slowly started reopening, and analysts suggest investors are more optimistic now—even though the likely-abysmal data from Q2 has yet to surface. “What the markets are telling us is that, ‘yes, maybe the worst of the economic data has not yet come,’ but the markets are looking several months down the road and saying, ‘are things going to be better? Yes they are,'” says Frederick.

Jobless claims are trending down

One of the more significant trends those like Schwab’s Frederick are noting is the steady decline in weekly initial jobless claims. While the numbers are still catastrophic (the latest weekly jobless claims came in at 3.2 million), those numbers have steadily decreased for five consecutive weeks now. They’ve “peaked, and almost inevitably the trend and direction of the data is more important than the absolute level,” he notes.

Winners and losers

But in this case, a rising tide doesn’t always lift all boats evenly, and analysts say they are seeing an even larger bifurcation between stock market winners and losers.

“Diving beneath the surface, although the S&P 500 as a whole remains down ‘only’ 11% for the year, many stocks are still down over 70%, while other stocks have already surpassed their all-time highs, reflecting investors’ attempts to pick out the winners from the losers within this awful health crisis,” Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, wrote in a note Friday.

Some of those winners have certainly seen a run-up: Netflix and Amazon, for example, both posted their all-time highs in April. And tech stocks have also enjoyed a rebound as of late, with the S&P 500 information technology index up 1.9% year to date. Meanwhile, stocks in airlines, energy, and autos have taken a beating.

But with markets up a solid 6% in the past month, the resilience should be encouraging, says Hamrick: “To the degree that the markets seemed to have found some footing is reassuring, because it at least gives the impression that some return to normalcy is occurring.” But, he adds: “But we also know that in the past, the markets have given false signals and have only sunk to previous lows or lower lows, so that’s not a guarantee.”

Our mission to help you navigate the new normal is fueled by subscribers. To enjoy unlimited access to our journalism, subscribe today.

More must-read finance coverage from Fortune:

—Saving lives vs. saving the economy is a false tradeoff, economists say
—Real unemployment rate soars past 24.9%—and —17% of unemployed workers aren’t looking for work—and —Does Apple’s stock buyback strategy make sense in this market?
—Goldman Sachs doubts there will be a Round 3 of PPP loans for small businesses
—Listen to , a Fortune podcast examining the evolving role of CEO
—WATCH: Why the banks were ready for the financial impact of coronavirus

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