Good evening. In our desire to properly convey the full depth of the dysfunction currently on display by House Republicans, we took a moment today to look up the formal definition of the term “clusterf---”: “a complex and utterly disordered and mismanaged situation: a muddled mess.”
Yeah, that captures what’s going on in the House. For those who might be curious, “s---show” also applies: “something (such as an event or a situation) that is chaotic, contentious, or unpleasant to an excessive or absurd degree.”
Here’s the latest.
Jim Jordan Pushes for Third Vote After Fallback Plan Collapses
The House of Representatives has now gone 16 days without a speaker and, after another day of furious discussions, palace intrigue and utter confusion among flailing Republicans, it appears no closer to getting one.
Despite fervent opposition from some Republicans, Rep. Jim Jordan of Ohio said late Thursday that he would push for a third vote on his bid to become speaker. “I am still running for speaker, and I plan to go to the floor and get the votes and win this race,” he said.
Jordan, House Republicans’ current speaker-designee, was prepared earlier in the day to put his campaign for the gavel on hold in the face of continued opposition from 20 or more members of his conference. Jordan instead endorsed a plan to temporarily empower interim speaker Patrick McHenry of North Carolina through January 3 and allow the House to take up pressing legislative business, including expected votes on aid to Israel and funding the government. In theory, the plan would also buy Jordan more time to build support for his speaker bid.
That idea was quickly quashed by an angry backlash from rank-and-file Republicans. Some called the plan unconstitutional while others said they feared ushering in what they saw as a coalition government with Democrats, whose votes would likely have been necessary. “It’s a giant mistake to give the Democrats control of a Republican majority,” said Rep. Jim Banks of Indiana. “We don’t deserve the majority if we go along with a plan to give the Democrats control over the House of Representatives. It’s a giant betrayal to Republicans.”
Late in the day, following a heated GOP conference meeting that lasted nearly four hours, Jordan said that he would push ahead with another vote on his speaker bid and try to win over the large bloc of holdouts.
“It was the latest abrupt turn in a Republican speaker drama that has played out for more than two weeks, underscoring the depth of the party’s divisions and disarray,” Luke Broadwater and Annie Karni of The New York Times write. “Unable to unite behind a candidate to lead them, the G.O.P. now can’t even agree on a temporary solution to allow the paralyzed House to function while they sort out their differences.”
The bottom line: A third vote on Jordan appears highly unlikely to end in a different result than the first two given that many Republican holdouts continue to insist they won’t support him even after meeting with him today. As the chaos continues, the House remains paralyzed even as wars rage on in the Middle East and Ukraine and a potential government shutdown looms 29 days away.
Quote of the Day
“We certainly have a very resilient economy on our hands. Many forecasts called for the U.S. economy to be in recession this year. Not only has that not happened; growth is now running for this year above its longer-run trend. So that’s been a surprise.”
− Federal Reserve Chair Jerome Powell, speaking at the Economic Club of New York on Thursday. Despite his reference to the stronger-than-expected economy, Powell’s comments overall bolstered expectations that the Fed will hold steady on interest rates at its next meeting.
Although inflation remains too high, Powell noted that rising interest rates throughout the economy in the wake of the Fed’s own rate hikes may provide enough of a drag on growth and the labor market to bring inflation back to the 2% target level, even if the process is uneven and takes some time. “Given the uncertainties and risks, and how far we have come, the committee is proceeding carefully,” he said.
Number of the Day: 198,000
Initial applications for unemployment benefits fell to 198,000 last week, reaching the lowest level since January, according to Labor Department data released Thursday. The results were below analyst expectations and point to a labor market that continues to show signs of strength, despite rising interest rates.
“The labor market remains red hot,” said Stephen Stanley, chief economist at Santander US Capital Markets, in a note to clients. “Demand is moderating but remains historically strong, while layoffs are running well below the norms, even for tight labor market episodes in the past.”
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Fiscal News Roundup
- Biden Plans $100B Aid Request for Israel, Ukraine, Taiwan and Border – Politico
- In a Day of Fits and Starts, G.O.P. Gropes for a Speaker Solution – New York Times
- Jordan Reverses Himself and Will Push for a Third Speaker Vote – New York Times
- ‘Squishes’ No More: Mainstream Republicans Dig In Against Jordan – New York Times
- Top GOP Leaders Were at Odds With McCarthy and Jordan Over Interim Speaker Resolution – CNN
- Gaetz Struggles to Explain What He’s Achieved With Push to Oust McCarthy – CNN
- Powell Signals Fed to Stay on Hold and Keep Future Hike on Table – Bloomberg
- Fed Has 'Wrong Inflation Target,' Should Be Less Data Dependent, El-Erian Says – Yahoo Finance
- A Strong Economy Is Making the Fed’s Job Harder – Rachel Siegel, Washington Post
- Treasury Yields Edge Toward 5% for First Time Since 2007 – Wall Street Journal
- Under Fire, Social Security Chief Vows ‘Top-to-Bottom’ Review of Payment Clawbacks – Cox Media Group
- Pfizer Prices Covid Drug Paxlovid at $1,400 for a Five-Day Course – Wall Street Journal
- U.S. Halts Collection on Some Past-Due Covid Loans, Sparking Federal Probes – Washington Post
- Trump Co-Defendant Sidney Powell Pleads Guilty in Georgia Election-Interference Case – Washington Post
Views and Analysis
- Jordan and the GOP Find a New Low Point in Speaker Mess – Aaron Blake, Washington Post
- Jim Jordan’s Pressure Campaign Is Backfiring – Julian Zelizer, CNN
- Why House Republicans Can’t Function, According to a House Republican – Jane Coaston, New York Times
- Where Do We Go From Here? Four Possible Scenarios for How the House Speaker Mess Works Itself Out – Anthony Adragna, Politico
- House Speaker Debacle Is a Warning Sign – Bloomberg Opinion Editorial Board
- The Unmaking of the Republican Majority – Karl Rove, Wall Street Journal
- Why the GOP Can’t Unite – Jonathan Martin, Politico
- The House Has Never Been Speakerless for So Long – Philip Bump, Washington Post
- Republicans Are Dodging a Bullet With Jim Jordan’s Collapse – Andrew Taylor, Politico
- The Economy Is Great. Why Do Americans Blame Biden? – Alan S. Blinder, Wall Street Journal
- Even Jerome Powell is Having Trouble Reading This Economy – Jonathan Levin, Bloomberg
- How Will States Pay for Roads When Gas Taxes Evaporate? – Peter Funt, Wall Street Journal
- 2023 State Elections Feature Key Tax Questions – Richard C. Auxier, Tax Policy Center
- Americans Shrug Off Historic Debt Surge – Brian Riedl, The Dispatch