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*******

FRIDAY, AUGUST 23, 2024 ~ VOL. CCLXXXIV NO. 46

WSJ.com

HHHH $5.00

 Fed Chairman Powell is

on the brink of winning the

inflation battle without a re-

cession, but the next few

months will be crucial. A1

 Stocks declined ahead of

a Powell speech to central

bankers. The Dow, S&P 500

and Nasdaq fell 0.4%, 0.9%

and 1.7%, respectively. B9

 PG&E is racing to confront

an uptick in fires ignited by

the California utility’ s pow er

lines ahead of the riskiest

months of wildfire season. B1

 F ord’s decision to kill a

highly touted future EV is a

sign that the industry’ s pull-

back on EV s is deepening. B1

 Canada ordered an end to

a work stoppage at the coun-

try’ s two main railroads, say-

ing an arbitrator would re-

solve disputes that disrupted

North American freight traffic

and supply chains. B1

 Air Canada pilots have

voted to strike if necessary to

break a contract impasse. B3

 Skydance Media is accusing

Paramount’s special commit-

tee of directors of breaching

the terms of its deal, according

toaletterreviewedbyThe

Wall Street Journal. B3

 Chinese search-engine gi-

ant Baidu reported better-

than-expected profit as its

AI-related business contin-

uedtogrow.B3

 Nestlé said longtime CEO

Mark Schneider is leaving

the company. B3

 Tesla’s head of finance op-

erations has left the com-

pany, further shuffling the EV

maker’s top ranks. B4

 Advance Auto Parts has

agreed to sell its Worldpac

subsidiary to Carlyle Group

for $1.5 billion in cash. B4

What’s

News

Business & Finance

World-Wide

Haggis Anyone? The Quest

To Make Scottish Food Hip

iii

The cuisine, sometimes a hard sell,

is treated like a delicacy in London

It can make Scottish cuisine a

hard sell compared with

French or Italian. The stodgier

fare might rival what’s found

at state fairs in America when

it comes to clog-

ging arteries.

But Scotland

is also responsi-

ble for smoked

mussels, tattie

scones, which

are a kind of po-

tato pancake,

and chewy bread

rolls stuffed with bacon, egg

or sausage and an obligatory

squirt of a vinegary brown

sauce. The rolls in particular

make life worth living, aficio-

Pleaseturn topageA9

LONDON—A few years ago,

Scottish soccer fans serenaded

theirhostsatagameinItaly

with a sinister

threat. “Deep fry

your pizzas!

We’re gonna

deep fry your

pizzas,” they

sang to the tune

of Guantanam-

era, the Cuban

folk song.

They weren’t entirely kid-

ding. Some Scots like nothing

better than a pizza or a haggis

battered and fried and served

with fat greasy fries af ter a

few beers on a Saturday night.

BY JAMES HOOKWAY

Upper crust

There ’s a saying that economic expansions

don’t die of old age: They’re murdered by the

F eder al Reserve.

F ed Chair Jerome Powell has spent the

past two years determined to beat inflation

even if it resulted in recession. Now he’s on

the brink of winning the battle without bring-

ing down the economy, but the next few

months will be crucial.

If he succeeds and maneuvers the economy

to a soft landing that brings inflation down

without a big rise in unemployment, it’ll be a

historic achievement worthy of the central

banking Hall of Fame . If he fails, the economy

will slide into reces sion anyw ay under the

weight of higher interest rates—and he’ll have

BY NICK TIMIRAOS

MANSION

Lisbon attracts

international buyers

even as visa progr am

changes.

BUSINESS & FINANCE

PG&E ra ces to

confront an uptick in

wildfires ignited by its

power lines.

Starbucks touted Niccol’s de-

cades of restaur ant experience

and marketing skill, which

helped turn around Chipotle

and more than double the bur-

rito chain’s annual sales be-

tween 2017 and 2023.

Chipotle had been riding

high before Niccol’s surprise

exit. The company said in July

that same-store sales grew by

about 11% in the quarter ended

June 30, when Starbucks and

other big chains report ed traf-

fic declines. Chipotle expects

its same-store sales to in-

crease at least 5% this year.

Niccol has larg ely been Chi-

potle’s public fac e as the New-

port Beach, Calif.-based com-

pany moved past food-safety

problems and rebuilt its

brand. Behind the scenes , Nic-

col has been backed by a team

Pleaseturn topageA2

DJIA 40712.78 g 177.71 0.43% NASDAQ 17619.35 g 1.7% STOXX600 515.74 À 0.3% 10-YR. TREAS. g 22/32, yield 3.862% OIL $73.01 À $1.08 GOLD $2,478.90 g $29.50 EURO $1.1113 YEN 146.30

proved the old maxim about the F ed.

Powell and his colleagues have signaled in

recent weeks that they’re ready to start cut-

ting rates when they next meet in September,

with price pressures now easing but the jobs

market cooling. That’ s put attention on how

fast officials should bring down rates from a

two-decade high.

F or Powell, the last phase of the Fed’s in-

flation fight marks a make-or-break moment.

How he plans his approach will loom over the

central bank’s annual conference in Wyo-

ming’s Grand Tet on National Park this week.

When Powell spoke there two years ago

Pleaseturn topageA9

Home Sales Climb Slightly

July: 3.95 million

U.S. existing-home sales

Source: National Association of Realtors

Note: Seasonally adjusted at an annual rate; July 2024

is preliminary.

 ’











 million

U.S. home sales

edged up in July,

ending a four-

month streak of

declines, and prices

remained near

record highs at a

time when the cost

of housing has

become a hot-

button election

issue. Mortgage

rates have fallen in

recent weeks,

which helped boost

sales modestly in

July. But the

volume of existing-

home sales has

been stuck at low

levels all year, and

the spring selling

season, usually the

busiest time of

year for the

housing market,

was a flop. A3

A Make-or-Break Moment

For the Economy Has Arrived

Next few months will be crucial for Fed Chair Jerome Powell

CHICAGO—Joe Biden came

into office trumpeting a sweep-

ing agenda to rescue the

shellshocked U.S. economy,

with his advisers comparing

his ambitions to those of Presi-

dents Lyndon Johnson and

Franklin D . Roosevelt. Nearly

four years later, Kamala Harris

faces a very different moment.

If she wins the presidency,

she would take office with a rel-

atively strong economy and the

political appetite for big, expen-

sive legislative swings severely

diminished. Biden already spent

trillions of dollars putting in

place an ag enda that encom-

passed many of the Democr atic

Party’ s boldest ideas.

Now, just weeks after she

rose to the top of the ticket,

Harris is trying to map out an

agenda that matches Biden’s

ambitions but fits into that

much narr ower reality —partic-

ularly if Congress is divided or

fully under GOP control.

“It’s going to be very diffi-

cult for her ,” said Moody’ s Ana-

lytics chief economist Mark

Zandi. “ She’s not going to have

the same kind of cart e blanche

to spend. She can’t be as big

and bold. Ther e’s no prospect

for another $2 trillion plan. ”

The vice president’s eco-

nomic advisers are scrambling

to assemble a policy ag enda on

the fly . Less than five weeks ago,

she and her team were still ex-

pecting to play a supporting

role for Biden, and they had

done little to prepar e for taking

over the White House.

A policy development pro-

cess that typically takes presi-

dential candidates months—or

years—to get right has been

truncated, with just over 70

days to g o until Election Day.

Harris faces the challenge of

Pleaseturn topageA6

Y ANDREW RESTUCCIA

AND TARINI PARTI

Advisers Craft Policy Agenda

In a Narrow Political Window

INSIDE

Chipotle CEO Inherits

A Recipe for Success

Chipotle Mexican Grill hired

Scott Boatwright seven years

ago to help fix the chain. His

next job is simple: Don’t break

it.

The Mexican-inspired res-

taurant company is for now

turning to Boatwright, its

longtime operations head, to

maintain a run of strong sales

and profit that have helped

Chipotle buck broad industry

malaise. Boatwright steps into

the top r ole on an interim ba-

sis af ter Brian Niccol, Chi-

potle’s chief executive officer

since 2018, was tapped last

week to run Starbucks.

Niccol’s hiring was cheered

by Starbucks investors—and

mourned by Chipotle’s, with

its stock dropping 7.5% on the

day of the announcement.

BY HEATHER HADDON

CHICAGO—Kamala Harris

frequently recalls her mother

telling her that she might be

“the first to do many things”

but to make sure she isn’t the

last. Yet as Harris formally ac-

cepted the Democratic presi-

dential nomination Thursday,

the vice president didn’t di-

rectly invoke the historic na-

ture of her candidacy.

Instead of leaning into what

her campaign thinks is obvi-

ous, the 59-year-old former

California senat or and pr osecu-

tor tried to accomplish some-

thing she has struggled to do

since her unsuccessful presi-

dential bid in 2019: provide a

clear picture to Americans of

what she st ands for—and why.

“I will be a president who

unites us around our highest

aspirations ,” Harris said. “A

president who leads—and lis-

tens. Who is realistic , pr actical

and has common sense. And al-

ways fights for the American

people. From the courthouse to

the White House, that has been

my life’s work.”

Harris sought to use the

prime-time address to pitch

Americans on her central cam-

paign message since unexpect-

edly replacing President Biden

at the top of the Democratic

ticket. She portrayed her op-

ponent, former President

Donald Trump, as a threat to

freedom, arguing she has a

more forward-looking agenda

on protecting abortion rights

and on expanding economic

mobility for the middle class.

“Donald Trump is an unseri-

ous man, but the consequences

of putting Donald Trump back

Pleaseturn topageA4

Y TARINI PARTI

AND KEN THOMAS

Harris Make s Her Case to Nation

Nominee pledges

to defend abortion

rights, f aults T rump

on f ailed border deal

Kamala Harris took the stage Thursday night to deliver her speech accepting the Democratic nomination for president.

CHARLY TRIBALLEAU/AFP/GETTY IMAGES

 Greg Ip: In campaign ’24,

RIP economics.................... A2

 Both parties race to fill in

blanks on Harris................ A4

 Who could serve in a

Harris cabinet?................... A4

 Stocks fall ahead of Powell speech........... B9

 Global economy shows resilience............. A16

s 2024 Dow Jones & Company, Inc.

CONTENTS

Arts in Review... A10-11

Business News...... B3

Capital Account..... A2

Crossword................. A11

Equities......................... B5

Heard on Street... B10

Mansion............... M1-12

Markets & Finance B9

Opinion................ A13-15

Sports.......................... A12

Technology................ B4

U.S. News.......... A2-4,6

World News... A7-8,16

 Kamala Harris took the

stage at the Democratic Con-

vention to accept the presi-

dential nomination. She used

her address to portra y Trump

as a threat to freedom and

outline the themes of her

campaign agenda, including

abortion rights and boosting

the middle class. A1, A4

 The FDA approved two new

Covid- 19 shots, both of which

target an offshoot of Omicron

known as the KP.2 strain. A3

 Kyiv used aerial drones to

attack an air base in Russia ’s

Volgograd region in an esca-

lating campaign of long-range

strikes seeking to damage

Moscow’s war machine. A7

 Ukrainian troops said they

are moving to encircle 3,000

Russian troops that are

hemmed against a river in

Russia’s Kur sk province. A7

 A cyberattack on North Mi-

ami, Fla., this month took down

public services and is serving

as a test of policies that out-

law ransom payments. A3

 An evaluation of more

than 1,500 climate policies in

41 countries found that only

63 actually worked to reduce

greenhouse gas emissions. A3

 The breakup of a Chinese

rocket following a satellite

launch generated a fresh

field of debris and new con-

cern over Beijing’s attitude

toward space junk. A8

 Mike Lynch, the British

tech tycoon missing after

his yacht sank off Sicily, was

confirmed dead. A8

 Brazil is tightening visa

rules to curb a wave of mi-

grants from Africa and Asia

turning the country into a stop-

overonthewaytotheU.S.A16

Friday, August 23, 2024

****

THE WALL STREET JOURNAL.

U.S. NEWS

U.S.WATCH

ARIZONA

High Court Order

On Voting Is Mixed

The Supreme Court on

Thursday allowed parts of a

recent Arizona law that re-

quired heightened proof of

citizenship to vote, but de-

nied a broader request by Re-

publicans that could have

prevented thousands in the

state from casting a presi-

dential ballot.

The court, in a one-page or-

der, kept in place an Arizona

requirement that voters must

show proof of citizenship

when registering to vote on a

state form. The court’s order,

however, said the state can’t

enforce a provision that would

bar already registered voters

from casting ballots for presi-

dent or from voting by mail if

they haven’t provided docu-

mentary proof of citizenship.

The Republican National

Committee and state Repub-

lican leaders had sought the

Supreme Court’s emergency

intervention.

As is typical when the

court issues emergency or-

ders, the justices didn’t ex-

plain their reasoning. Further

litigation will continue in the

lower courts.

—Brent Kendall

NEW YORK

Partner of Ex-FTX

Executive Charged

Federal prosecutors on

Thursday charged crypto lob-

byist Michelle Bond with con-

spiring with her romantic

partner, former FTX execu-

tive Ryan Salame, to illegally

fund her failed 2022 congres-

sional bid.

Bond faces four campaign-

finance offenses, including

conspiring to cause unlawful

political contributions. A law-

yer for Bond didn’t respond

to a request for comment.

The case is the latest off-

shoot of prosecutors’ investi-

gation into the collapse of

FTX, the crypto exchange

that imploded in November

2022.

Salame pleaded guilty last

year to conspiring to make il-

legal political contributions

and conspiring to operate an

unlicensed money transmis-

sion business. A judge sen-

tenced him to more than

seven years in prison.

Prosecutors said that

shortly after Bond, a Republi-

can, launched her campaign

in May 2022, Salame, then an

FTX executive, put together a

sham consulting agreement

between his girlfriend and

the exchange.

Bond used that $400,000

payment, plus hundreds of

thousands of dollars Salame

wired to her personal bank

account, to illegally fund her

campaign to represent a con-

gressional district on the

eastern portion of Long Is-

land, prosecutors said.

—Corinne Ramey

Chipotle has been an exception to a broad malaise in the restaurant industry.

ANGUS MORDANT/BLOOMBERG NEWS

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GOT A TIP FOR US ?

SUBMIT IT AT WSJ.COM/TIPS

P ric e, rent controls

The U .S . hasn’t had econo-

mywide wage and price con-

trols since the early 1970s,

and Harris isn ’t proposing

them now . She and Biden

have proposed something

narrower: taking federal tax

benefits away from corpor ate

landlords that raise rents

more than 5%, and cracking

down on “price-gouging .”

In spirit, these are similar

to federal, state and local

laws that regulate prices of

insurance and drugs or dur-

ing natural disasters. Yet as

with formal price controls ,

they short-circuit the essen-

tial role of higher prices:

drawing in new supply and

encouraging substitution to -

ward cheaper alternatives.

Price controls are justified

when a few companies enjoy

market power. Those condi-

tions don’t apply to apart-

ments or food.

After rents soared during

the pandemic, developers re-

sponded by building record

new units. Thanks to that

flood of supply, new lease

rents are now falling.

Alexei Alexandrov, former

chief economist of the F ed-

eral Housing Finance Agency,

said no multifamily developer

controls enough of the apart-

ment market to have market

power. While some landlords

have been accused of collud-

ing, “that’s why we have…an-

titrust laws already on the

books.”

A temporary rent cap

won’t have much effect given

rents aren’t rising much any -

way, Alexandrov said. If per-

ceived to be permanent, de-

velopers will try to raise

rents immediately, screen

tenants more tightly, build

fewer of the affected build-

ings or convert apartments

to condos, he said.

Trump has called Harris’s

proposals socialism, yet he

too has a soft spot for price

controls . He routinely called

for Medicare to negotiate

drug prices. It finally hap-

pened this year, under Biden.

Given Medicare’s size , drug

companies consider this tan-

tamount to price controls.

Tariffs

Economists have a visceral

dislike of tariffs. They’re a

tax on imports , and imports

are quite useful. In recent

years, a more nuanced view

has emerged. Trump’s tariffs

on China, which Biden con-

tinued and Trump proposes

to expand, r educe U.S. vul-

nerability to a geopolitical

adversary.

But Trump’s proposed 10%,

or even 20%, “baseline” tariff

on every country and product

serves no obvious purpose. He

claims this will cause Ameri-

can consumers to buy U.S. in-

stead of foreign-made g oods,

boosting jobs and reducing

the trade deficit.

Certainly, if you ’r e willing

to force consumers to pay

thousands of dollars extra,

you can make them buy do-

mestic instead of imported

products. But for what pur-

pose? Protection can be justi-

fied for infant industries

such as green tech or prod-

ucts essential to national se-

curity. T-shirts, wine and

countless other imported

products don’t qualify.

In any case, t ariffs alone

won’t r educe the trade g ap be-

cause currencies, interest

rat es, saving s, and the budg et

deficit often work in the other

direction, boosting imports

and reducing exports . Despite

tariffs, the trade gap widened

in Trump’s presidency.

Perhaps Trump thinks tar-

iffs give him leverage to forc e

CAPITAL ACCOUNT

By Greg Ip

In Campaign ’24, RIP Economics

t’s too soon to predict

the winner of Novem-

ber’s election, but not

too soon to predict the

loser: economics.

Economists routinely ad-

vise against price contr ols ,

tariffs, discriminatory taxes

and wider budget deficits.

Donald Trump, Joe Biden and

Kamala Harris are entertain-

ing some or all of them.

Of course, no one expects

economic principles to al-

ways take precedence over

other priorities. There are

times when price controls,

tariffs and deficits are actu-

ally good economic policy.

But the candidates haven’t

just demoted economic prin-

ciples this year; they’ve jetti-

soned them altog ether.

“Doesn’t anyone listen to

economists anymore?” asked

Columbia University econo-

mist Glenn Hubbard, who

chaired President George W.

Bush’s Council of Economic

Advisers.

Sure , these ideas look po-

litically shrewd. But if imple-

mented, they may come back

to haunt a future president.

Notaxesontips

Tax policy usually inv olves

a trade-off between equity

(treating people fairly) and

efficiency (improving growth

and well-being). Trump’s pro-

posal to end taxes on tips,

quickly adopted by Harris,

manages to be both inequita-

ble and inefficient.

It’s inequitable because it

would tax people paid mostly

via wages, such as cooks,

more heavily than similar

people paid mostly via tips,

such as waiters. It’ s ineffi-

cient because it rewar ds a

clumsy and often arbitrary

form of compensation.

When tips are no longer

taxed, employees and em-

ployers will try to take ad-

vantag e by structuring more

compensation as tips. The

losers: consumers who al-

ready resent proliferating re-

quests for tips. Tax breaks

are supposed to encourag e

things we like, such as chil-

dren and homeownership;

this one does the opposite.

other countries to reduce

trade barriers. Some might,

but others, such as the Euro-

pean Union and China, will

likely retaliat e , as they did in

his first term. Deutsche Bank

economists show that manu-

facturing employment deteri-

orated in the U.S . after

Trump’s trade war began in

2018, with the biggest impact

in the most manufacturing-in-

tensive counties.

Tax giveaways

Harris has proposed a

$6,000 tax credit for the par-

ents of a newborn child. Not

to be outbid, Trump’s run-

ning mate JD Vanc e has

pitched a $5,000 credit for

every child. The fiscal arms

race doesn’t stop there; Har-

ris is promising a $25, 000

tax credit for first-time home

buyers. Trump would end in-

come taxes on Social Security

benefits.

These ideas aren’t inher-

ently bad, but boy, they’re

expensive. The Committee for

a Responsible F eder al Budget

estimates Harris’s promises,

beyond those made by Biden,

cost about $1 trillion over a

decade; Trump’s Social Secu-

rity tax repeal would cost at

least $1.6 trillion.

The U .S . budget deficit is

already close to a record out-

side wars and crises, and

these plans would make it

worse. There are times when

it’s OK, even necessary, for

the government to borrow

more: at war and in crises,

and when inflation and inter-

est rates are low. None of

those things ar e true now .

Political types will say a

few bad ideas are worth

electing a good candidate,

and besides, many won ’t be

enacted. But some will. In

December 2020, Trump

called for new $2,000 stimu-

lus checks, which even at the

time looked excessive . The

Democratic candidates in

Georgia ’s Senate runoff elec-

tions picked up the call. After

they won, new checks be-

came a centerpiece of Biden’s

stimulus and helped fuel the

inflation that haunts him,

and Harris, now.

Kamala Harris backs a plan to take tax benefits from corpor ate landlords that raise rents over 5%.

YUKI IWAMURA/BLOOMBERG NEWS

Curt Garner, a Chipotle ex-

ecutive since 2015 who now

leads technology, was re-

cruited to the chain after help-

ing to design the Starbucks

app. Chipotle’ s digital rewar ds

program now has about 40

million users.

Chipotle’s shares have re-

gained gr ound since their ini-

tial drop , and some sharehold-

ers said they are sticking with

the chain.

“It’ s never a one-man band, ”

said St ephanie Link, chief in-

vestment strategist for the

wealth-management firm

Hightower. Link said her firm

bought Chipotle shares last

week, seeing a buying opportu-

nity when the stock declined

on the news of Niccol’s depar-

ture . “They have a good bench,

even without Brian.”

Restaurants are under

growing pressure as consum-

ers pare discretionary spend-

ing, and other chains antici-

pate a decline in same-store

sales this year.

Chipotle’s sales have held up

despite several menu-price in-

creases in recent years, bene-

fiting from loyal consumers

who tend to be more affluent

and health-conscious than the

aver ag e rest aur ant patron.

The chain in recent months

has been criticized over the

size of its portions, with some

consumers con vinced that its

bowls and burrit os had become

skimpy in the past year.

Chipotle said in July that it

was retraining staff in some

stores to be more generous

with food portions. In recent

weeks, some consumers have

posted praise and photos of

heaping bowls.

The chain’s weekly foot-

traffic growth continued to

outpace the fast-food and fast-

casual industry as a whole

over the first seven months of

this year, according t o location

data from Placer.ai.

Mark Madeley, a Mexican-

food fan in Houston, doesn’t

want Chipotle to make big

changes . He said he wants the

chain’s leaders to keep staff-

ing restaurants with friendly

people who dish up filling

meals.

“To me, the brand stands for

fresh, quality ingredients , pre-

pared to your liking, ” he said.

of executives and operations

specialists who are capable of

carrying the torch at Chipotle,

according t o shar eholders , an-

alysts, former company offi-

cials and other restaurant in-

dustry executives.

“One of the things Brian is

good at is surrounding himself

with great people,” said Mer e-

dith Sandland, CEO of software

firm Empower Delivery and a

restaur ant industry consultant.

The former Taco Bell executive

worked with Niccol before his

time at Chipotle.

A Chipotle spokeswoman

said the chain’s board is con-

ducting an external CEO

search and has hired a search

firmasamatterofgoodgov-

ernance. Chipotle said Boat-

wright wasn’t av ailable for an

interview.

Some shareholders and in-

dustry analysts said they

would like Boatwright to stay

in the job. The 51-year-old for-

mer Arby’s executive has de-

cades of restaur ant experience

and was central to Chipotle’s

efforts to resolve food-safety

problems.

F eder al officials implicated

the company in at least five

foodborne illness outbreaks be-

tween 2015 and 2018, with in-

vestigators finding that some

workers weren’t f ollowing

safety protocols, such as re-

porting to work when sick.

The fallout badly bruised

Chipotle’s sales and its overall

brand, which c entered on

fresh, natural ingredients that

it advertised as a healthier al-

ternative to fast food.

Steve Ells, Chipotle’s

founder, in 2017 recruited

Boatwright to become the

chain’s chief restaurant offi-

cer. Boatwright at the time

was nearly two decades into a

career at Arby’s, helping the

roast-beef sandwich chain

navigate a turnaround and

leadership change.

ContinuedfromPageOne

Chipotle

CEO’s Job

Is Simple

Boatwright has spent years

working closely with restau-

rant managers , employees and

franchisees and is known for

having an open-door policy,

according to industry execu-

tives who have worked with

him. At Arby’s, Boatwright

was often dispatched to mar-

kets that needed operational

help, said Melissa Strait, a

former chief people officer at

Arby’ s who worked with Boat-

wright.

“He could go in there and,

pretty quickly , figure out what

washoldingamarketback,”

Strait said.

He also has a sense of hu-

mor. At an Arby’s franchisee

convention years back, Boat-

wright participated in an eat-

ing contest featuring the

chain’s Meat Mountain sand-

wich—turkey, ham, r oast beef,

chicken tenders and other in-

gredients piled between bread.

Boatwright’s early goal at

Chipotle was to improve food

safety while maintaining res-

taurants’ use of ingredients

prepared fresh each morning,

he said in a podcast interview

last year. The chain needed

more-consistent standards

across its restaurant s , he said,

as well as leaders with the

time and focus to help imple-

ment them.

“What we lacked was a level

of sophistication with leader-

ship development, ” Boatwright

said on the “Future Ready

Leadership” podcast. “It’s a

recipe for disaster in a high-

growth organization.”

A company spokeswoman

said Chipotle hasn’t experi-

enced major food-safety con-

cerns in recent years. Its

practices have earned indus-

try recognition.

The company’s executive

bench includes Chris Brandt,

Chipotle’s marketing chief

since 2018. Industry analysts

have credit ed him with creat-

ing digital marketing cam-

paigns that ha ve helped pull in

younger consumers.

2017 ’20 ’24

$10 billion

Chipotle’s annual revenue*

Sources: the company (revenue, store sales); FactSet (share price)

*For the years ended Dec. 31, except for 2024, which is for the 12-month period ended June 30. †Change from a year earlier

2017 ’20 ’24

$70

Share price

2017 ’20 ’24

–10

30%

Comparable store sales†

Weekly data

W A SP- 193 b has a density

1/20th that of Jupiter’ s . A U.S .

News article on Thursday

about the planet located 1,200

light-years or so away from

Earth incorrectly said it is “20

times less dense” than Jupiter.

Also, the caption failed to iden-

tify the image accompanying

the article as an illustration.

CORRECTIONS 

AMPLIFICATIONS

Readers can alert The Wall Street

Journal to any errors in news articles

by emailing wsjcontact@wsj.com or

by calling 888-410-2667.

THE WALL STREET JOURNAL.

*****

Friday, August 23, 2024

U.S. NEWS

BY NICOLE FRIEDMAN

H ome S ales Edged U p , Prices S till Hig h

An evaluation of more than

1,500 climate policies in 41

countries found that only 63

actually worked to reduce

greenhouse gas emissions.

Subsidies and regulations—

policy types often favored by

governments—rarely worked

to r educe emissions, the study

found, unless they wer e com-

bined with price-based strat e-

gies aimed at changing con-

sumer and corporat e behavior.

“The commonality in those

successful cases is where we

see subsidies and regulations

being combined with price-

based policy instruments , ” said

Nicolas Koch, senior researcher

at the Berlin-based Mercator

Research Institute on Global

Commons and Climat e Chang e

and an author of the study.

“This means carbon pricing,

and it could be energy taxes , it

could be vehicle taxes.”

The study, published Thurs-

day in the journal Science,

used an AI algorithm to sif t

through a database of envi-

ronmental prescriptions com-

piled by the Organization for

Economic Cooperation and De-

BY CATHERINE STUPP

In North Miami, Cyberattack Tes ts Ransom Ban

U .S. home sales rose slightly

in July, ending a four-month

streak of declines, and prices

remained near record highs at

a time when the cost of hous-

ing has become a hot-button

election issue.

The combination of elevated

mortgag e rat es and high prices

has made home-buying unaf-

fordable to millions of Ameri-

cans and pushed many buyers

out of the market.

Mortgage rates have fallen

in recent weeks, which

helped boost sales modestly

in July. But the volume of ex-

isting-home sales has been

stuck at low levels all year,

and the spring selling season,

usually the busiest time of

year for the housing market,

wasaflop.

Sales of previously owned

homes in July rose 1.3% from

the prior month to a season-

ally adjusted annual rate of

3.95 million, the National Asso-

ciation of Realtors said Thurs-

day. That was the lowest level

for any July since 2010. On an

annual basis , existing-home

sales, which make up most of

the housing market, fell 2.5%.

Prices slipped fr om a month

earlier but held near the re-

cord high reached in June. The

supply of homes for sale na-

tionally is rising but remains

below normal historical levels.

The national median existing-

home price in July was

$422, 600 , a 4.2% increase from

a year earlier , NAR said. Prices

aren’t adjusted for inflation.

“Home sales are rising

minimally,” said Lawrence

Yun, NAR’s chief economist.

“We do have more inventory,

but people are not picking up

on that.”

Americans have repeatedly

cited the high cost of housing

as a top concern, and both

parties have proposed plans to

address it. Democratic presi-

dential candidate Kamala Har-

ris last week un veiled a plan to

add three million more homes,

while the Republican Party has

proposed opening up more

federal land for building.

The July dat a doesn’t show

whether the new rules for how

improve affordability for

home buyers. An increase in

the number of homes for sale

has also made it easier for

some house hunters to f ind

homes to buy.

Nationally, there were 1.33

million homes for sale or under

contract at the end of July, up

0.8% from June and up 19. 8%

from July 2023, NAR said.

At the current sales pace,

there was a 4. 0-month supply

of homes on the market at the

end of July. That is at the low

end of what is considered a

balanced market between buy-

ers and sellers.

Ethan and Kylee Armstrong

lost out on their first offer to

buy a home this spring in Kan-

sas City, Mo., to a competing

bid. “It stung a little bit,”

Ethan Armstrong said.

A month later, when they

put in their third offer on a

house, there weren ’t other

buyers bidding against them.

They bought the house in July

for $272,500.

“It seems like the entire

market has kind of settled

down recently,” he said. “A lot

of homes are sitting.”

Even with lower rates and

higher inventory, buyers re-

main hesitant, real-estate

agents said. Some are waiting

for rates to fall further, and

others think houses are over-

priced.

“Buyers have a lot more

choices,” said Christian Ross , a

real-est ate agent in Atlanta.

But “the reality is, we’re still

sitting in high prices.”

Kelly Laudadio bought a

three-bedroom house in Hous-

ton in July for $520,000. She

said there were few options

within her budget that met

her needs.

“It’s amazing what people

are selling for half a million

dollars right now—or are try-

ing to sell, I should say,” she

said. “This house was a uni-

corn.”

The typical home sold in

July was on the market for 24

days,upfrom20daysayear

earlier, NAR said.

News Corp, owner of The

W all Str eet Journal, also oper-

ates Realtor. com under license

from NAR.

real-estate agents get paid

have had an effect on the mar-

ket, because the rule changes

were implemented in most of

the U.S . this month.

Mortgage rates fell this

week to 6.46%, their lowest

level since May 2023, accord-

ing to Freddie Mac, helping

2005 ’10 ’15 ’20

100,000

150,000

200,000

250,000

300,000

350,000

$400,000

July: $422,600

Median existing-home price

in the U.S.

Source: National Association of Realtors

Note: July 2024 is preliminary.

Sea Lions Bask in the Sun and Have Fun on California Coast

A TAKEOVER: Hundreds of sea lions gathered on San Carlos B each in Monterey, Calif., forcing local authorities to temporarily close the beach.

CARLOS BARRIA/REUTERS

New Covid- 19 shots are on

their way, leaving plenty of

time to get them before respi-

rat ory illness season this fall.

The Food and Drug Adminis-

tration on Thursday ga ve Mod-

erna—as well as Pfizer and its

partner BioNTech—the gr een

light to roll out their new shots

in the coming days. Both vac-

cines tar get an offshoot of Omi-

cron known as the KP.2 str ain.

The shots will be a vailable

to anyone over 6 months of

age , a move that comes as

Covid hospitalizations continue

to climb and r emain higher

than they wer e at this time last

year, according to data from

the Centers for Disease Control

and Prevention.

Doctors say everyone who is

eligible should get a shot, and

older people who have skipped

other recent vaccine updates

should especially consider it.

“I saw a lot of people in the

hospital who got a lot of shots

in the beginning of the pan-

demic and then didn’t get any

shots for a year or two years,”

said Dr. Pet er Chin-Hong, a pro-

fessor of medicine at University

of California-San Francisco and

an infectious-disease specialist.

Despite recommendations

last year that everyone 6

months and older g et a Covid-19

shot, a majority of Americans

skipped out. Only 22.5% of

adults and 14. 4% of children had

the most r ecent shots as of

May, CDC data showed.

“Unless you’r e very con-

cerned about acquiring Covid

right now, my recommendation

would be to get it in September

or October, ” said Dr. William

Schaffner, a professor of pre-

ventive medicine at the Van-

derbilt University School of

Medicine. “That will provide

the best protection throughout

the winter season.”

The CDC recommends peo-

ple get one of the new vaccines

by the end of October. Both

will be av ailable at local clinics

and pharmacies.

People who rec ently got

Covid-19 shots or recently got

infected should wait around

three months before getting an

updated vaccine, doctors said.

Those who are immunocom-

promised can get extra doses of

the vaccine throughout the

year, but the CDC is still weigh-

ing whether to advise the same

for people older than 65.

The FD A approved the new

Covid shots based on labora-

tory data from the companies

that showed they performed

well against several strains of

the virus, as well as evidence

from older versions of the vac-

cines about how well they

worked in humans.

Novav ax is also making a

Covid vaccine for the fall, but

the FD A hasn ’t yet approved it.

The vaccine targ ets a differ ent

strain of the virus, JN.1. The

company has said it prot ects

against other variants as well.

—Jared S. Hopkins

contributed to this article.

Y LIZ ESSLEY WHYTE

AND PETER LOFTUS

New Covid

Shots Get

Approval

From FDA

based carbon management

firm, who wasn’t involved in

the study.

In 2015, more than 190 na-

tions signed the Paris agree-

ment, pledging to limit global

warming to 1.5 degrees Celsius

above preindustrial levels to

avoid the worst effects of cli-

mate change. As part of the

treaty, nations are required to

document how they will

achieve emissions reductions .

By searching through the

OECD database, which identi-

fies 46 types of policy inter-

ventions, the study’s authors

found government policymak-

ers prefer subsidies and regu-

lations, according to Koch.

“We see a lot of policy

packages built around these

two policy types, and we find

that it’s very rare that they re-

ally work in reducing emis-

sions,” Koch said.

velopment, a Paris-based eco-

nomic agency, between 1998

and 2020. These policies

ranged from energy-efficient

standards for household appli-

ances to a carbon tax on fossil

fuels like oil and gas.

The fraction of policies that

worked combined financial in-

centives, regulations and

taxes, according to the study.

The authors evaluat ed poli-

cies adopted by each nation’s

electricity, transportation,

building and industrial sec-

tors. They programmed the al-

gorithm to cross-reference

each policy with subsequent

changes in greenhouse gas

emissions from each country.

Climate experts said the

study is a good road map for

which policies work and can

be updated to include data

from the 2022 Inflation Re-

duction Act, which is doling

out an estimated $428 billion

in subsidies, incentives and

tax credit s for climate-related

projects.

“This study gives me confi-

dence that we know what to

do and how to do it,” said Ju-

lio Friedmann, chief scientist

at Carbon Direct, a New York-

The study found the na-

tions’ overall climate emis-

sions will exceed the Paris tar -

get by 23 billion metric tons

ofCO2by2030.

The 63 succ es sful policy in-

terventions in total reduc ed

emissions between 0.6 billion

and 1.8 billion metric t ons of

CO2. The most successful of

the policies included a mix of

policy tools to change con-

sumer and corporat e behavior.

In the U .S ., emissions from

vehicles dropped 8% from 2008

to 2010 after new mileage

rules were put into effect in

2007 along with a tax break for

motorists who bought cleaner

cars in 2006, Koch said.

In the U.K., a combination

of an announced phaseout of

coal plants, a minimum price

for electricity and stricter air-

pollution standards led to a

44% cut in emissions in the

electricity sector between

2013 and 2020.

In China, emissions fell 20%

in 2016 from the industrial

sector in seven pro vinces that

started an emissions trading

program in 2013 that ratch-

eted down the use of fossil fu-

els, combined with the elimi-

nation of fossil fuel subsidies .

In isolation, policies such

as labeling appliances or cars

as energy efficient, imposing

speed limits or imposing new

vehicle taxes weren’t suffi-

cient to bend the emissions

curve, the study found.

One limitation of the study

is that it only examined poli-

cies that had an impact within

approximately two years of

implementation. However,

some policy changes t ak e lon-

ger to make a difference, ac-

cording to Christoph Bertram,

associate research professor

at the Center for Global Sus-

tainability at the University of

Maryland, who wasn ’t part of

the study. Within the frame-

work of the study, those kinds

of policies wouldn’t appear to

have reduced emissions.

Bertram pointed out the

slow transition from coal to

natural gas in U.S. power

plants that began in 2007 and

result ed in a 25% reduction in

CO2 emissions by 2022. This

transition didn’t result in a

sharp reduction in emissions,

and therefore wasn’t picked

up as a success in the study,

he said.

BY ERIC NIILER

Mos t Climate Policie s Ar e Ineff ective at C utting E missions, S t ud y S ays

Policy

change

period†

’05 ’10 ’15 ’202000

14.0

14.5

15.0

15.5

16.0 log (CO2 emissions)*

China’s industrial emissions

*Natural logarithm, modeled ﬁt †Approximate

Source: Nicolas Koch, Mercator Research Institute on Global Commons and Climate Change

’05 ’10 ’15 ’202000

14.00

14.25

14.50

U.S. transportation emissions

With policy

changes

Without

A cyberattack on the city

administration of North Miami,

Fla., this month took down

public services—and is serving

as an early test of policies that

outlaw ransom payments.

Hackers attacked the small

city on Aug. 4, leading off i-

cials to close City Hall and po-

lice officers to use old-fash-

ioned radio communication

instead of newer digital sys-

tems. Two weeks later, some

services are still down, said

Scott Galvin, a city council-

man.

Galvin said hackers de-

manded the city pay a ransom

of several million dollars. At-

torneys quickly informed law-

makers and city officials that

was out of the question be-

cause of a 2022 ban on ran-

som payments from govern-

ment entities enacted by the

state legislature, he said.

A representative for the

city of North Miami said in a

statement, “Our IT depart-

ment, in close collaboration

with local and national law

enforcement agencies, is

working diligently to restore

the city’s systems. Due to the

ongoing investigation by the

authorities, we are unable to

share specif ic details about

the incident at this time.”

Emergency services and policy

services have r emained opera-

tional and City Hall is open,

the representative said.

Advocates of laws banning

ransom payments argue that

as long as cyberatt ack victims

continue to pay, hackers have

an incentive to keep attacking

and extorting companies and

government agencies. Laws

restricting ransom payments

also come with the risk that

victims may have little re-

course to recover stolen data

if they aren ’t able to pay hack-

ers for a decryption key.

Legal restrictions on ran-

som payments are relatively

new. North Carolina also

banned government entities

from paying ransoms in 2022.

Lawmakers in other states

such as New York and Penn-

sylvania and a number of

countries have introduced

similar bills as ransomware

attacks on schools, hospitals

and government offices surg e.

Law enforcement authori-

ties gener ally recommend that

cyberatt ack victims don’t pay

a ransom after an attack.

While there is no federal ban

on ransom payments, the

Treasury Department has

warned that victims could vio-

late sanctions by paying.

The Treasury in recent

years has placed sanctions on

several ransomware groups

and individual hackers, includ-

ing the Lazarus Group, which

was behind the 2017 Wanna-

Cry hack that crippled

Maersk, FedEx and companies

around the world. Law en-

forcement agencies said the

group was tied to North Ko-

rea. In February, the Treasury

Department sanctioned the

LockBit group, which inf il-

trated the New York arm of

Industrial & Commercial Bank

of China last year.

Cybersecurity attorneys

caution ransomware victims

that they may unwittingly vio-

late sanctions without know-

ing who is responsible . F ollow-

ing a hack, it is often unclear

which hacker group carried

out the attack.

Legal bans on ransom pay-

ments could eventually dis-

suade hackers, said J. Michael

Daniel, president and chief ex-

ecutive of the Cyber Threat

Alliance, a nonprofit that

shares information about

hacks among cybersecurity

companies.

Daniel said there is a need

for government support and

other policies to help compa-

nies improve cybersecurity

before lawmakers implement

such a broad-based law.

But a ban on government

entities paying a ransom is

different, he said.

“It is very difficult to argue

that it’s OK for public tax dol-

lars to be spent paying crimi-

nals,” he said.

wsj_20240823_a003_p2jw236000_5_a00300_1________xa2024.crop.pdf 1 23-Aug-24 05:32:47

Friday, August 23, 2024

PWLC101112HTGKRFAM123456789OIXX

*******

THE WALL STREET JOURNAL.

U.S. NEWS

as a national sales tax— “call it

a Trump tax,” she said.

On abortion, Harris blamed

Trump for putting into place

the Supreme Court justices

who in 202 2 overturned Roe v.

W ade, which had established a

constitutional right t o an abor-

tion. She accused Trump of

preparing for a nationwide

abortion ban—which the for-

mer president has denied he

would pursue.

“Simply put, they are out of

their minds,” Harris said. “And

one must ask: Why exactly is it

that they don ’t trust women?”

She also addressed one of

Trump’s biggest lines of attack

head on: the Biden administra-

tion’s handling of the southern

border. She blamed Trump for

killing a bipartisan border se-

curity bill that failed in the

Senate earlier this y ear and

said that as president, she

would push for that legislation

and sign it into law .

In recent days, Harris has

begun rolling out parts of her

agenda, releasing a vision to

make housing more affordable

while lowering the cost of gro-

ceries. Harris’ s aides have said

they want her agenda to pro-

vide a contrast with Trump

without reading like a think-

tank white paper.

who traveled from India to

California at age 19 “with an

unshakable dream to be the

scientist who would cure

breast cancer. ”

In high school, Harris said,

she noticed her best friend,

Wanda, was sad at school.

Harris said she later learned

that her friend was being sex-

ually abused by

her stepfather.

Harris remem-

bered telling

her friend that

she had to

come stay with

her family.

“This is one

of the reasons I

became a pros-

ecutor,” she

said. “To pro-

tect people like Wanda be-

cause I believe everyone has a

right to safety, to dignity, and

to justice.”

With early voting beginning

in some states in about a

month and Election Day just

over two months away, Harris

has limited time to r eintroduc e

herself as a leader in her own

right. Biden st epped away from

the race in July, the first presi-

dent to abandon a re-election

campaign since 1968, and en-

dorsed Harris to succeed him.

Part of Harris’s task going

forwar d will be maintaining

the momentum of the first

month of her candidacy while

continuing to char acterize

Trump—who is about two de-

cades older than she—as a relic

of the past. Her team will also

need to deny Trump the man-

tle of an outside change agent

at a time when

Harris remains

closely tied to

Biden’s policies

and surveys

show many vot-

ers yearning for

change .

Although

Harris’s popu-

larity has

surged since

her whirlwind

ascent t o the top of the Demo-

cratic ticket, a recent CBS

News poll showed that over a

third of voters said they didn’t

know what she stands for.

Harris during her speech

sought to draw sharp contrast s

with Trump on issues such as

taxes and abortion rights,

warning that the president

would slash taxes on the

wealthy and increase tariffs on

goods from foreign countries.

She likened the former presi-

dent’s proposal to r aise tariffs

‘Simply put, they

are out of their

minds,’ she said

of the GOP’s

abortion stance.

Both Pa rties Race to Fill in Blanks on Harris

in the White House are ex-

tremely serious,” Harris said

during her speech at the party

convention. “Consider not only

the chaos and calamity when

he was in office, but also the

gravity of what has happened

since he lost the last election,”

she said, referring to the Jan.

6, 2021, riot at the Capitol.

Trump, on his Truth Social

platform, was following along

as Harris g ave her address. “No

specific programs, ALL T ALK,

NO ACTION— Wh y didn’t she

do it three and a half years

ago ?” the Republican nominee

said in one of his many posts

while she was speaking.

Harris is the nation’s first

Black and female vice presi-

dent. If she wins in November,

as the first woman or person

of South Asian descent in the

Oval Office, she will face st eep

challenges in unifying a di-

vided elector ate around her vi-

sion for the country.

The vice president sought to

allay those concerns, saying the

nation has a “precious, fleeting

opportunity to move past the

bitterness, cynicism, and divi-

sive battles of the past. ”

Harris also put an emphasis

on elements of her biography—

such as her upbringing by a

middle-class, immigrant

mother—to cast her as an au-

thentic and relatable messen-

ger on her priorities.

“Building that middle class

will be a defining goal of my

presidency,” Harris said. “And

I’ll tell you, this is personal for

me. The middle class is where

I come from.”

She offered a personal ac-

count of her family’s unlikely

path to America and her deci-

sion to become a prosecutor.

Harris recalled the journey of

her mother, Shyamala Harris,

ContinuedfromPageOne

Nominee

Makes Case

To Nation

DAVID PAUL MORRIS/BLOOMBERG NEWS

CHICAGO—On the sidelines

of the Democratic conv ention,

officials are trying to answ er a

question with crucial stakes:

Who will Kamala Harris hir e if

she wins?

Harris’s advisers insist it is

too early to begin speculating

about the coterie of names

who would fill out her cabinet

and take top positions in the

White House. That hasn’t

stopped Washington’s ambi-

tious power players from an-

gling for jobs and quietly lob-

bying for their friends and

allies.

The W all Street Journal put

tog ether an early list of names

that have emerged in conver-

sations with senior Democrats .

White House

One of the most critical

roles in any White House is

chief of staff. Potential candi-

dates include Minyon Moore,

who is running this week’s

convention; former Labor Sec-

retary Marty Walsh; former

Rep. Cedric Richmond; Lor-

raine Voles, Harris’s current

chief of staff and Eric Holder,

attorney general during the

Obama administration.

Harris’s economic policy

brain trust includes Brian

Nelson, a former Tr easury De-

partment official; Mike Pyle,a

former Harris aide and former

adviser to President Biden;

former National Economic

Council Direct or Brian Deese;

former Biden economic ad-

viser Gene Sperling; Deanne

Millison, Harris’s former chief

economic adviser and Rohini

Kosoglu, Harris’s former do-

mestic policy adviser. All of

them are seen as candidates

for jobs in Harris’s administra-

tion.

Nelson, Pyle and Millison

could lead the NEC, as well as

former deputy NEC director

Bharat Ramamurti. Possible

candidates to lead the White

House Domestic Policy Council

include Kosoglu and Jennifer

Klein, the director of the

White House’s Gender Policy

Council. Ike Irby, who was

Harris’s deputy domestic pol-

icy adviser in the White House

until earlier this year, is also

thought to be in line for a se-

nior policy position.

Domestic policy

For Treasury secretary,

Harris could consider Wally

Adeyemo, current Secretary

Janet Yellen’s deputy, as well

as Nelson. Commerce Secre-

tary Gina Raimondo is also

said to be interested in run-

ning Treasury, and Don

Gra ves , Raimondo’s deputy, is

a potential candidate to run

Commerce.

Sen. Laphonza Butler (D.,

Calif.) has been mentioned as

a potential labor secretary.

Neera Tanden, Biden’s Do-

mestic Policy Council direct or,

By Andrew Restuccia,

Tarini Parti,

Alexander Ward

and Annie Linskey

CHICAGO—Democrats have

a story to tell as they prepared

Thursday to reintroduc e Vice

President Kamala Harris to a

national audience: She was

raised by a middle-class single

parent and was once a colleg e-

age McDonald’ s employee and

a big-hearted prosecutor. Re-

publicans tell a different story:

She is an out-of -t ouch Califor-

nia liberal who is soft on crime

and immigration.

Which story voters believe

will be crucial to the outcome

of the November election be-

tween her and former Presi-

dent Donald Trump, her GOP

rival. Though Harris has been

in political life for 20 years—

including four years in the

Senate and nearly four as the

vice president—she is still a

relatively new figure on the

national stage.

While her popularity has

surged since her whirlwind as-

cent to the top of the Demo-

cratic ticket, a recent CBS

News poll showed that over a

third of voters said they didn ’t

know what she stands for. And

Harris has only just begun lay-

ing out an agenda to guide

what she will do if she wins.

“With Harris, it’ s an oppor-

tunity. I think a lot of people

would acknowledge there’s a

lot they don ’t know about her ,”

said Karen Finney, who

worked on Hillary Clinton’s

2016 campaign. “It’s not about

just learning facts; it’ s getting

afeelforwhosheis.”

Republicans have focused

much of their criticism on Har-

ris’s 2019 campaign and her

recor d in California. “Kamala

Harris is a radical San Fran-

cisco liberal who has spent her

career advocating for weak-on-

crime policies that have al-

lowed criminals back on the

streets and made our commu-

nities less safe,” said Trump

spokeswoman Karoline Leavitt.

The GOP has also sought to tie

her to Biden’s policies on the

economy and inflation and de-

cisions such as the chaotic

withdrawal of troops from Af-

ghanistan, which have been

unpopular with voters.

Building up to Harris’s re-

marks Thursday at the Demo-

cratic convention, her cam-

paign used friends, colleagues

and video testimonials to fill in

the blanks some voters might

have r egar ding her upbringing

and her record. Aides also

wanted to pull back the cur-

tain on her personal life, show-

casing her as a wife, daughter

and stepmother.

Harris’s team wants to build

on her momentum and dispel

any concerns related to her

unsuccessful 2019 Democratic

presidential campaign or her

struggles early on as vice pres-

ident over such issues as im-

migration. A campaign adviser

said Harris in her Thursda y

night speech would argue that

a second Trump term would

take the country backward, as

she seeks to pitch Americans

on her record and life story.

Her campaign has so far

avoided detailing many policy

specifics, prot ecting her from

giving fodder to Republicans

for attacks as she seeks to

unite the party at its conven-

tion. Instead, the campaign

has opted to release a broad

vision t o make housing more

affordable while lowering the

cost of groc eries. Aides said

they want her agenda to pro-

vide a contr ast with Trump

without reading like a think-

tank white paper.

Trump has r epeatedly criti-

cized her intelligence. “Our

country needs a very smart

person, and I don’t think she’s

a very smart person,” Trump

said in an interview with CBS

this week.

Harris’s allies have ex-

pressed concern throughout

her vice pr esidency that voters

didn’t know who she was, giv-

ing Republicans, who saw her

as a future political threat, the

chance to define her. Her team

is now trying to contrast her

background with Trump’s,

stressing a modest upbringing

with a single mother, who

didn’t buy a home until Harris

was a teenag er.

“The neighborhood we grew

up in was a very hardworking,

middle-class, tight-knit com-

munity,” said Harris’s sister,

Maya Harris, in a video aired

Monday night. On Tuesday,

Harris’s husband, Doug Em-

hoff , described a warm, family-

focused person, whom his chil-

dren know as “Momala,” and

who officiated at his son’s

wedding.

Chauncey McLean, presi-

dent of Future Forward, a su-

per P AC backing Harris, said

its research has shown that

voters ar e willing t o give Dem-

ocrats some “gr ac e or open-

ness” to learn more about

Harris.

“Republicans were hoping

that they wer e going to be able

to paint her as more of the

same,” McLean said at a forum

on the sidelines of the conven-

tion. McLean added that in-

stead they have heard voters

they have surveyed say,

“ ‘W ait a second, she was vice

president. She wasn’t pr esi-

dent. And we want to see what

she’s about, what’s her vi-

sion,’ ” he said.

Y CATHERINE LUCEY

AND TARINI PARTI

Vice President Kamala Harris Monday night in Chicago.

SOPHIE PARK FOR WSJ

Kamala Harris was joined on stage by running mate Tim Walz and their families after her speech Thursday night accepting the

Democratic Party’ s presidential nomination. Earlier , Harris’s grandnieces appeared with actress Kerry Washington.

is seen as a contender to run

the Department of Health and

Human Services. Kavita Pat el,

a doctor and former Obama

White House official, could be

a candidate for a senior role at

HHS. Nadine Burke Harris,

California’s former surgeon

general, could be in the run-

ning for U.S. surgeon general.

As vice president, Harris

has built relationships with

chief executives and other

business leaders. Wall Street

financier Blair Effron,co-

founder of investment bank

Centerview Partners , has been

discussed by Democrats as a

potential candidate for Trea-

sury or commerce secretary.

Harris is also close to former

tech CEO Charles Phillips,co-

chair of the Black Economic

Alliance; Microsoft President

Brad Smith and former Amer-

ican Express CEO Ken

Chenault.

Harris, a former prosecutor,

is likely to take great interest

in choosing the lawyers that

will run the Justice Depart-

ment and the White House

Counsel’s Office.

Potential candidates for

those positions include: for-

mer Sen. Doug Jones (D.,

Ala.); Sally Yates, former

President Barack Obama’s

deputy attorney general and

V anita Gupta, the first woman

of color to serve as associate

U.S. attorney general.

Others in line for senior

roles at the Justice Depart-

ment or the White House

Counsel’s Office include Kris-

tine Lucius, a Harris adviser

and former Senate Judiciary

Committee chief counsel.

National security

Both Biden and Harris’s ad-

visers say at least some cur-

rent national-security officials

are likely to get prominent

roles , but she is likely to bring

in her own people as well.

Phil Gordon, Harris’s na-

tional-security adviser, would

be a strong candidate to as-

sume that role.

Sen. Chris Murphy (D.,

Conn.) has been mentioned as

a contender for secretary of

state. He and Harris aligned

on many issues during their

mutual time in the Senate,

particularly on ending the

Saudi-led war on Yemen.

Tom Nides, who previously

served in a top position at the

State Department and as am-

bassador to Israel, is also con-

sidered t o be a cont ender for a

top national-security position.

Central Intelligence Agency

Direct or William Burns could

be considered for secretary of

state.

Sen. Chris Coons (D., Del.),

a close Biden friend, was seen

as a leading contender for sec-

retary of state, but it is un-

clear if Harris would tap him.

National-security adviser Jake

Sullivan, Secretary of State

Antony Blinken and Defense

Secretary Lloyd Aus-

tin wouldn’t likely be ex-

tended in their current roles,

current and former officials

said.

Ear ly L is t Emerges

For Cabinet Post s

ANGELA OWENS/WSJ

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