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Capital Journal
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Good morning from the WSJ's Washington bureau.
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Trump Administration: President Trump is back in Washington. He has been tweeting about his former lawyer Michael Cohen this morning.
CPAC: Vice President Pence speaks at the Conservative Political Action Conference in Maryland in the morning.
Pompeo: The secretary of state met with President Rodrigo Duterte. The Philippines shelved a planned review of its military alliance with the U.S. in return for a verbal commitment that U.S. forces would defend its vessels in the South China Sea.
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"We had to walk away," President Trump said after the second summit with North Korea.
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The U.S. and North Korea traded blame for the failure of their second summit. President Trump said North Korea asked for full sanctions relief without offering enough weapons-programs concessions in return, while North Korea said it made reasonable proposals for partial relief that were rejected by the U.S. The setback left uncertain the way forward on one of the president’s signature foreign-policy issues, report Michael R. Gordon, Jonathan Cheng and Vivian Salama.
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Analysis: The Hanoi summit roller-coaster ride vividly illustrated the positives and pitfalls of Mr. Trump’s top-down style of diplomacy, writes Michael R. Gordon.
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The venue at Hanoi’s historic Metropole Hotel where Mr. Trump and Kim Jong Un were set to lunch Thursday offered an early indication that things had gone awry. At first, it appeared the talks were running long. But the sprawling table, with its vases of flowers, fine china and menus tucked into napkins, was never touched. Only after reporters traveling with Mr. Trump sent official word was there a clear indication of trouble: “Schedule change,” White House press secretary Sarah Sanders said.
The lunch never happened, nor did the scheduled signing of a joint agreement. Mr. Trump later announced an impasse over sanctions relief. “Sometimes, you have to walk,” he said.
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— Vivian Salama | vivian.salama@wsj.com
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Big Democratic Presidential Field Leaves Fewer Top-Tier Candidates for Senate Seats
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A large field of Democrats running for president could complicate the party’s quest to win back the Senate.
Some Democrats who could be competitive in 2020 Senate races are instead opting to run for president, depleting the bench of top-tier candidates.
Democrats need to net at least four Senate seats in 2020 to secure control of the chamber, though they could also with the majority with three pick-ups and control of the White House. Twenty-two Republican senators are up for re-election in 2020, compared to 12 Democrats, and several Republicans are running in states that Hillary Clinton won or nearly won in 2016. Only one Democrat, Sen. Doug Jones (R., Ala.), is seeking re-election in a state President Trump won in 2016.
Though Beto O’Rourke, the former Texas congressman, has not announced a presidential bid, he has ruled out a Senate bid. Julián Castro, an Obama cabinet official and Texan, is running for president, leaving two potentially competitive challengers to Sen. John Cornyn (R., Texas) out of the field. Mr. O’Rourke came within a few points of beating Sen. Ted Cruz (R., Texas) in 2018 in the best statewide performance for a Democrat in Texas since 1988.
Texas is not alone. Former Colorado Gov. John Hickenlooper is flirting with a White House run rather than a Senate bid. Officials who have previously won statewide office are generally considered competitive in Senate races, and Sen. Cory Gardner’s (R., Colo.) seat is particularly ripe for a Democratic pick-up. Mrs. Clinton won the state in 2016 by almost 5 percentage points, and Democrat Jared Polis won the state’s 2018 gubernatorial race by more than 10 percentage points.
Montana Gov. Steve Bullock, another potential Democratic presidential contender, would also pass on a Senate race if he instead launched a primary campaign. Sen. Steve Daines (R., Mont.) is up for re-election in 2020. Sen. Jon Tester (D., Mont.) survived an aggressive Republican effort to defeat him in 2018 in a largely rural, conservative state.
Democrats seem poised to avoid a similar fate in Georgia, where Stacey Abrams's unsuccessful gubernatorial campaign in 2018 nevertheless earned her a national following. Ms. Abrams, at one point a rumored national candidate, has met with Democratic Senate Campaign Committee officials in Washington, though she has yet to announce a campaign against Sen. David Purdue.
Democrats who run for president can always tack to a Senate seat. And it’s difficult to forecast the strength of certain candidates: Mr. O’Rourke was not a high-profile politician when he began his upstart Texas Senate campaign.
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Washington state Gov. Jay Inslee said he will seek the Democratic presidential nomination, reports Reid J. Epstein. His campaign will focus on addressing climate change. He's the 13th Democrat to join the race.
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Beto O’Rourke says he has made a decision on his 2020 plans, and a person familiar with his decision says he won’t be making another run for the Senate, Reid J. Epstein reports.
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The Medicare for All Caucus made its debut last summer in Washington. PHOTO: BILL CLARK/ZUMA PRESS
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Democratic support for Medicare for All is slipping from the high levels seen around the midterm elections, report Stephanie Armour and Kristina Peterson, as voters worry about its price tag and the toll it would take on both private and employer coverage. The softening support comes as a blow to progressives.
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House Democrats signaled they would seek testimony from Trump Organization officials, including the CFO, report Andrew Duehren and Rebecca Ballhaus, to follow up on accusations Michael Cohen made under oath Wednesday.
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Senate Republicans are warning Mr. Trump against moving ahead with his national-emergency declaration to build a wall, report Natalie Andrews and Kristina Peterson, and are pressuring him to restrict the project’s funding to less controversial sources.
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Republican Sens. Susan Collins, Lisa Murkowski and Thom Tillis have committed to supporting a resolution to block the White House from redirecting federal funds toward building the border wall.
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House Republicans have been using a procedural voting tactic to push Democrats facing tough re-election to split with leadership. Speaker Nancy Pelosi is telling members to stand together to oppose last-minute changes introduced by Republicans before votes, while Majority Leader Steny Hoyer and Whip Jim Clyburn have permitted some lawmakers to split with the party line, Natalie Andrews and Joshua Jamerson report.
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The U.S. economy completed one of the best years of a near-decadelong expansion, reports Harriet Torry. Output was up 3.1% in the fourth quarter from a year earlier, the second straight quarter of yearly growth at 3% or more. The administration has made 3% growth central to its economic policies of tax cuts, deregulation and a tougher trade stance.
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The White House is confident economic growth will top 3% again this year, Council of Economic Advisers Chairman Kevin Hassett told WSJ.
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In the fourth quarter, GDP expanded at a 2.6% annual rate.
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Here's why 3% growth probably won't last.
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All sorts of people who have previously had trouble landing a job are now finding work. Here's a look at who’s getting ahead, who could be left behind and how long the boom can last.
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Taxpayers reported 33.5% more in net capital-gains income in 2017 than in 2016, according to new IRS data that provide the first look at the final year before the Tax Cuts and Jobs Act took effect. The strong economy and stock market drove many asset sales, but the changing tax law itself may have affected the numbers at the margins, reports Richard Rubin.
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Average tax refunds rebounded after a weak start to the tax-filing season, Kate Davidson and Richard Rubin report. The average tax refund was $3,143 through Feb. 22, a 1.3% increase from the same period last year, IRS data show. Treasury said refunds rose 19% from the previous week.
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In an uncharacteristic move, leaders of Britain's intelligence agencies have spoken out publicly about the threat to national security posed by Huawei, the Chinese telecommunications company. (Financial Times)
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By accusing American Jews of "allegiance" to a foreign country, Democratic Rep. Ilhan Omar is seeking to delegitimize their participation in the political system. (New York Magazine)
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In a new poll of New Hampshire Democrats, 26% back Sen. Bernie Sanders for the 2020 nomination, 22% former Vice President Joe Biden--and just 7% Sen. Elizabeth Warren. (Granite State Poll)
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This newsletter is a production of the WSJ Washington bureau. Our newsletter editors are Tim Hanrahan, Kate Milani, Troy McCullough and Daniel Nasaw. Send feedback to capitaljournal@wsj.com.
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