Principals

1. Harris set debate tone
2. Republicans want rematch
3. Inflation report
4. Trump’s shutdown play
5. A solemn anniversary
6. Iran helps Russia
7. Fed rolls back bank capital proposal
8. Tester is Dems’ majority maker

PDB: Blinken criticizes IDF after death of Turkish-American activist

Taylor Swift endorses Harris … Trump to be appear on “Fox & Friends” … Mexican legislature approves judicial overhaul

Harris baited Trump into debate she wanted

Kamala Harris baited Donald Trump into the debate she wanted. The vice president planted traps for the former president, and he stepped onto them for most of the night, Semafor’s David Weigel reported. After Harris encouraged viewers to attend a Trump rally to watch bored people leave, he said no one attended her rallies before meandering into a false, viral story of migrants eating pets in Ohio. “In Springfield, they’re eating the dogs, they’re eating the cats,” he said. Laughing, Harris responded, “Talk about extreme.” Harris was often the aggressor, and didn’t get bogged down in the weeds of her record like President Biden did in his meltdown in June’s debate with Trump. The former president spent time rebutting her instead of landing lines the Republicans wanted to hear, such as her dropping her progressive ideas from her 2020 primary campaign and her active role in the unpopular Biden administration.

Republicans want rematch, Trump uncertain

Republicans are set for another debate with Kamala Harris, but Donald Trump isn’t so sure, Semafor’s Shelby Talcott and Kadia Goba write. Harris’ campaign called for another debate immediately after Tuesday night’s ended. “She wants a second debate because she lost tonight, very badly,” the former president said. “They immediately call for a second debate because they lost. We’ll think about that.” Moments later, Trump appeared more uncertain on Fox News. “If you won the debate, I sort of think maybe I shouldn’t do it. Why should I do another debate?” Then he added he’d “maybe” agree to one “if it was on a fair network.” Meanwhile, his campaign team and allies proposed the candidates meet again. Trump spokesperson Tim Murtaugh said the Trump campaign came into Tuesday’s debate wanting three. “I don’t know any reason why we would change that,” he said. Trump surrogate Vivek Ramaswasmy told Semafor “more debates are better for the public.”

US awaits key inflation gauge

The inflation report out today will help the Federal Reserve lock in a decision on how dramatically to cut interest rates. The Consumer Price Index for August is the first of two remaining inflation gauges that will be released before the Fed meets on Sept. 17-18. The reading for July found year-over-year inflation slowing to under 3% for the first time since 2021. The majority of a group of economists surveyed by Reuters predicted that the Fed would cut interest rates by 25 basis points, while only a few anticipated a 50-basis-point cut. Meanwhile, the US received some encouraging economic news on Tuesday with the release of a Census Bureau report showing inflation-adjusted incomes rose in 2023 for the first time in four years. Last month, grocery prices also saw their sharpest monthly drop in at least a decade, according to Adobe.

Trump’s intervention won’t shake shutdown dynamics

Donald Trump’s attempt to sway the September debate over government funding isn’t budging most lawmakers. After Trump urged a shutdown if Republicans don’t secure passage of a measure requiring proof of citizenship before voting — “DON’T LET IT HAPPEN - CLOSE IT DOWN!!!” he wrote on Truth Social — key senators reiterated they don’t have an appetite to escalate the fight. Minority Leader Mitch McConnell called a shutdown “a bad idea” as Senate leaders hinted a short-term funding patch is being drafted. “We’re not going to introduce anything yet but we’re working and talking,” Senate Appropriations Chair Patty Murray told Semafor. Speaker Mike Johnson’s Trump-centric plan hits the House floor today, though it’s in big trouble due to stewing GOP opposition. Still, GOP moderates believe he’ll get out of the logjam. “I trust the speaker,” Rep. Don Bacon of Nebraska told Semafor. “The speaker says he opposes shutdowns, so I expect him to negotiate and get the best deal he can.”

— Joseph Zeballos-Roig and Burgess Everett

US marks 23 years since 9/11

American officials mark the solemn 23rd anniversary of the Sept. 11 terrorist attacks at memorials across the country today. In a few minutes, the American flag will be unfurled on the side of the Pentagon “to demonstrate our resolve and resilience in the face of the horrific terrorist attacks on our nation,” Pentagon press secretary Maj. Gen. Pat Ryder said. President Biden and Vice President Harris will travel together to the ceremony at Ground Zero in New York City; the Flight 93 Memorial in Shanksville, Pa.; and a Pentagon wreath laying ceremony. Defense Secretary Lloyd Austin and Joint Chiefs of Staff Chair Gen. Charles Q. Brown Jr. will host the Pentagon’s observance ceremony for families of those killed in the attack. Former President Donald Trump will attend two events in New York City before heading to another one in Shanksville, a person familiar with his plans tells Semafor’s Shelby Talcott.

Iran, Russia deepen partnership

Ukraine is bracing for more damaging attacks by Russia after the US and its allies accused Tehran of supplying Moscow with ballistic missiles. The White House said Russia will likely use the short-range ballistic missiles — which reach up to 75 miles — “within weeks against Ukraine.” Secretary of State Antony Blinken warned that the Iranian missiles would enable Russia “to use more of its arsenal for targets that are further from the front line.” The US didn’t put a number on the missiles Iran sent to Russia, but Ukrainian officials told the Financial Times that they totalled more than 200. The US sanctioned Iranians and Russians it said helped move missiles and drones from Iran to Russia, as well as Iran’s flagship airline Iran Air. The UK, France, and Germany also moved to restrict Iran Air flights into Europe. Ukrainian officials plan to press Blinken on loosening restrictions on the use of US-supplied weapons to hit targets in Russia when he visits the country with British Foreign Secretary David Lammy today. President Biden suggested yesterday he was considering doing so.

Mark Ein, Venture Capitalist and Entrepreneur; Limited Partner, Washington Commanders and Lori Kalani, Chief Responsible Gaming Officer, DraftKings will join Semafor’s editors in Washington, D.C. on September 19 for a discussion on the growth and trajectory of the U.S. gaming industry.

RSVP for in-person or livestream.

Wall Street banks win fight against bank capital rules

Wall Street is breathing a sigh of relief after a top Federal Reserve official confirmed that the central bank would drastically scale back a planned increase in capital requirements for the biggest US banks. Fed Vice Chair for Supervision Michael Barr said that the central bank would basically cut the 19% proposed capital hike in half to 9%. “There are benefits and costs to increasing capital requirements,” Barr said at the Brookings Institution. The walkback of the rules — which were the target of an intense lobbying campaign by Wall Street — represents a “significant win for the biggest banks,” one analyst told the Financial Times. Progressive Sen. Elizabeth Warren responded furiously, calling the decision a “Wall Street giveaway, increasing the risk of a future financial crisis and keeping taxpayers on the hook for bailouts.”

The center of the Senate battle

Faced with a seriously brutal Senate map, it’s going to take a lot more than some tough public polling to dissuade Democrats from seeing Montana as their best path to retaining Senate control. That’s because most party insiders currently see the reelection of Jon Tester as more probable than pick-ups in Florida or Texas (though Democrats aren’t ruling out a big push in either state at the moment). In an interview with Semafor’s Burgess Everett, Tester said he’s no underdog and dismissed the importance of troubling polls: “I feel really good about how this race is going to turn out.” Republicans aren’t exactly saying the race is over, but they certainly feel good. “We’ve seen several polls following President Trump’s visit to Montana — even before — Tim Sheehy is starting to lead beyond the margin of error, so it’s looking promising,” said Sen. Steve Daines, R-Mont.

Beltway Newsletters

Punchbowl News: House Speaker Mike Johnson said he is “absolutely convinced” that Republicans will increase their House majority in November and win the Senate and White House.

WaPo: One Democratic official summed up Kamala Harris’ debate performance with one word: “slay.”

Axios: The spin room in Philadelphia after last night’s debate was a “mirror image” of the last debate between Donald Trump and President Biden in June: Republicans struggled to spin Trump’s performance.

Playbook: Trump’s trip to the spin room last night to declare victory in the debate was notable because it’s something he hasn’t done since 2016.

Congress

• A group of House Republicans wrote to President Biden imploring him to lift restrictions on Ukraine’s ability to use US-provided weapons to hit targets deep inside Russia.
• Meanwhile, Maine Rep. Jared Golden is the first House Democrat to back the Republicans’ short-term funding bill if it includes a proposal to ensure noncitizens don’t vote in US elections. — The Hill
• Rep. Joseph Wilson, R-S.C., collapsed at Ukraine’s Independence Day event in Washington, DC and was receiving treatment at a hospital on Tuesday evening.

Outside the Beltway

• Francine strengthened into a hurricane as it approached southern Louisiana.
• Anti-abortion advocates are countering abortion rights ballot initiatives at the state level by pushing their own competing proposals. — NOTUS

Business

• Nippon Steel’s vice chair Takahiro Mori will be in Washington today meeting with senior officials involved with the Committee on Foreign Investment in the US in an attempt to salvage the company’s proposed takeover of US Steel. — FT
• The US-China Business Council named Sean Stein, who chairs the American Chamber of Commerce in China, as its new president.

Crime

Americans lost $5.6 billion through cryptocurrency fraud schemes last year, up 45% from 2022, the FBI said.

Polls

• Republican voters are more likely to trust Donald Trump and his campaign than they are government certification of election results, according to a poll from AP/NORC/USAFacts.
• Kamala Harris leads Trump 50% to 42% among likely voters in Virginia, per a Washington Post/Schlar School poll.

On the Trail

• Maggie Goodlander, a former Biden aide who is married to national security adviser Jake Sullivan, won the New Hampshire Democratic primary to replace Rep. Annie Kuster.
• Kelly Ayotte won the New Hampshire Republican primary to replace Gov. Chris Sununu.
• Melania Trump cast doubt on law enforcement’s account of the assassination attempt against Donald Trump.
• A pro-Palestinian protester disrupted Tim Walz’s debate watch party in Arizona.

Childless cat lady backs Harris

National Security

The US is moving aircraft and commandos into West Africa in a push to stop Al Qaeda and Islamic State fighters from marching across the region. — WSJ

Foreign Policy

• During Tuesday’s debate, Donald Trump refused to say whether he wants Ukraine to win the war against Russia.
• Secretary of State Antony Blinken demanded Israeli security forces make changes to their operations in the West Bank after an Israeli military review concluded that it likely “unintentionally” killed Ayşenur Eygi, an American-Turkish citizen, when she was protesting last week.
• Israel has offered Hamas leader Yahya Sinwar safe passage from Gaza in exchange for freeing the remaining Israeli hostage the group holds and relinquishing control of the territory, Israeli hostage Gal Hirsh said. — Bloomberg
• Deputy Secretary of State Kurt Campbell accused China of providing “very substantial” help to Russia’s war machine. — Politico

Technology

Australian Prime Minister Anthony Albanese said his government plans to introduce legislation this year to set a minimum age to use social media.

Media

Elon Musk’s false posts about elections are reaching millions and alarming election officials. — WaPo

Blindspot

Stories that are being largely ignored by either left-leaning or right-leaning outlets, curated with help from our partners at Ground News.

What the Left isn’t reading: A House panel published a report accusing former New York Gov. Andrew Cuomo of covering up nursing home deaths in the state during the COVID-19 pandemic, ahead of his testimony before Congress.

What the Right isn’t reading: Missouri’s Supreme Court ruled that a proposal reversing the state’s abortion ban will be on the ballot in November.

Principals Team

Editors: Benjy Sarlin, Elana Schor, Morgan Chalfant

Reporters: Burgess Everett, Kadia Goba, Joseph Zeballos-Roig, Shelby Talcott, David Weigel

Anthony Scaramucci briefly served as White House communications director under Donald Trump and is now a Trump critic. The Harris campaign brought him as a guest to last night’s debate.