McCarthy, Kevin (1965- )

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      Could Congressional Gridlock Lead to More Government Shutdowns?

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      Congressional gridlock brought on by far-right Republicans now seems more likely to lead to government shutdowns.The House speaker elections last week turned a typically routine government procedure into a dramatic affair. They also exposed a major vulnerability in Congress: A small segment of lawmakers can stop the process of basic governance to obtain what it wants, with potentially big ramifications for the country.In the speaker fight, the immediate consequences were relatively small. A Republican speaker, Kevin McCarthy, is leading a majority-Republican House.More critical is how Republicans got there. McCarthy made concessions that will weaken his power, make it easier for lawmakers to oust him and give the right-wing rank-and-file greater input in legislation and in lawmakers’ assignments to committees, where Congress does much of its work.The graver consequences will unfold months from now if the ultraconservatives who prolonged the speaker selection again withhold their votes until they have their way on looming spending bills. Congress must pass such legislation to keep the government open and avoid economic calamity. If deadlines for these bills come and go without a resolution, the government could be forced to shut down or, worse, default on its debt obligations, likely triggering a financial crisis. (More on that later.)The right flank has already connected its opposition to McCarthy to such spending bills. In speeches during the four-day speaker battle, far-right Republicans cited a $1.7 trillion spending bill Congress passed last month to argue that establishment figures, including McCarthy, have failed to reduce government spending. Among the concessions that ultraconservatives drew from McCarthy was a promise that any increase on the country’s debt limit, a congressionally set cap on the federal debt, will be paired with spending cuts.Some hard-liners have been clear that they would take drastic action again to have their way on spending. “Is he willing to shut the government down rather than raise the debt ceiling? That’s a nonnegotiable item,” said Representative Ralph Norman, a Republican critic of McCarthy who ultimately voted for him.Representative Matt GaetzHaiyun Jiang/The New York TimesDeliberate gridlockThe ultraconservatives have said that one of their main goals is to shrink the size of government. “If you don’t stop spending money that we don’t have to fund the bureaucracy that is undermining the American people, we cannot win,” said Representative Chip Roy, a Republican who voted against McCarthy in 11 ballots.One way to achieve this goal is by pushing Congress toward inaction. Consider some of the assurances the holdout Republicans received from McCarthy: more time to read and debate legislation, as well as to propose unlimited changes to it.In theory, these changes might sound like common sense, since legislators should, ideally, be taking time to understand and finalize bills. But in practice, these kinds of allowances have slowed Congress’s work, if not halted it altogether, by giving lawmakers more chances to stand in the way of any kind of legislation.This roadblock is especially likely in a closely divided Congress. Since House Republicans have a slim majority of 222 votes out of 435, they must rely on their right-wing faction to reach a majority in any vote (absent unlikely support from Democrats). Last week, that faction showed it will wield its leverage.“It’s all about the ability — empowering us to stop the machine in this town from doing what it does,” Roy said.Coming deadlinesIf the ultraconservatives use these tactics in future legislative debates, Congress could miss deadlines to keep the government open and avoid a financial crisis.Among the looming fights is one over the debt limit. If the government ever reaches this limit, it can no longer borrow money to pay off its debts, potentially forcing a default. That could cause serious damage to the global financial system, which relies on U.S. Treasuries as a safe investment.The government is expected to hit the current debt limit in late summer. Republicans have already suggested that they will try to use negotiations over raising it to draw spending concessions from Senate Democrats and the Biden administration, a tactic that conservatives used during Barack Obama’s presidency. But Democrats have said that they will not negotiate over the debt limit this time.If both sides stick to their word, the government could be on track for the most treacherous debt-limit debate since 2011, my colleague Jim Tankersley reported. That year, Obama and a new Republican House majority nearly defaulted on the nation’s debt before reaching a deal.Similarly, the government will have to pass a spending bill in September to remain open. Republicans have, again, suggested that they will use their control of the House to reduce government spending. Democrats have said that they will push back. If both sides fall short of an agreement, the government will shut down, halting or slowing functions like the payment of military salaries, environmental or food inspections and the management of national parks.The battle over the speaker, then, is potentially a preview of what’s to come: a Congress unable to perform even its basic duties because a small segment of lawmakers are willing to say no.More Congress newsHistory suggests that House Republicans’ plans are likely to bring more gridlock and instability, Carl Hulse writes.House Republicans are preparing to investigate law enforcement and national security agencies.THE LATEST NEWSBrazil RiotsSupporters of Jair Bolsonaro in Brasília yesterday.Evaristo Sa/Agence France-Presse — Getty ImagesThousands of supporters of Brazil’s former president, Jair Bolsonaro, stormed the country’s Congress and presidential offices over false claims of a rigged election.Brazilian authorities cleared the government offices and arrested at least 200 people, an official said.These videos show how rioters stormed government buildings in protests that resemble the Jan 6., 2021, attack in the U.S.Bolsonaro is believed to be in Florida after spending months promoting the myth of a stolen election.InternationalTwo buses collided in Senegal, killing at least 40 people.Ultra-Orthodox politicians in Israel are pushing to cement their community’s special status under Benjamin Netanyahu’s new government.Noma, the Copenhagen restaurant rated the world’s best, will close next year. Its chef says its style of dining is unsustainable.Other Big StoriesPresident Biden made his first visit to the southern border since taking office.Winds knocked out power for hundreds of thousands of people in Sacramento. More storms are coming to California this week.A new Korean War memorial has many names of American service members misspelled or missing.An avalanche buried and killed two snowmobilers in Colorado, emergency responders said.The Phoenix police are investigating their detention of a Black journalist for The Wall Street Journal who was reporting outside a Chase Bank.OpinionsNoncompete clauses lower wages and decrease competitiveness across the economy, says Lina Khan, the Federal Trade Commission chair.Gail Collins and Bret Stephens discussed the speaker chaos.Our society is failing visual thinkers, to everyone’s detriment, Temple Grandin writes.Damar Hamlin’s injury was serious but rare. Head trauma, heart disease and other more common conditions pose greater dangers to football players, Chris Nowinski writes.MORNING READSChatham, N.Y.Lauren Lancaster for The New York TimesExpensive, treacherous, beautiful: The battle over dirt roads.A $17,000 delay: A check-in agent’s mistake made her miss an Antarctic cruise.Metropolitan Diary: Food never tasted as good as it did at 3 a.m.Quiz time: Take our latest news quiz and share your score (the average was 8.7).A morning listen: 2022 was Bad Bunny’s year.Advice from Wirecutter: Stop killing houseplants. Try Lego flowers.Lives Lived: Russell Banks brought his blue-collar background to bear in novels that vividly portrayed working-class Americans. He died at 82.SPORTS NEWS FROM THE ATHLETICBears’ conundrum: Chicago will pick first overall in the 2023 N.F.L. Draft. Should they take an elite college quarterback or continue building around Justin Fields?N.F.L.: The Bills, in their first game since Damar Hamlin’s collapse, beat New England. Detroit’s win over Green Bay sent the Seahawks to the playoffs and cemented postseason seeding. An injury: Kevin Durant injured his right knee in last night’s Nets win over the Heat. ARTS AND IDEAS Kathleen FuThe man behind the memoirOne name you won’t find on the cover of Prince Harry’s memoir, “Spare,” is J.R. Moehringer, the book’s ghostwriter. That’s because the job of ghostwriters — even the famous ones, like Moehringer — is to put ego aside and disappear into their subject’s voice.Michelle Burford, who has written books for several celebrities, explains to her clients that they provide the materials to build a house and she puts it together. “You own the bricks,” she tells them. “But you — and there should be no shame in this — don’t have the skill set to actually erect the building.”Moehringer, a Pulitzer Prize-winning former reporter, is known for his intense process. “He’s half psychiatrist,” said the Nike co-founder Phil Knight, who collaborated with Moehringer on his memoir. “He gets you to say things you really didn’t think you would.”Related: Prince Harry appeared at ease and at times emotional in high-profile interviews.PLAY, WATCH, EATWhat to CookRomulo Yanes for The New York TimesBroccoli and Cheddar soup has a following on the internet.What to ReadIn “The Edge of the Plain,” the journalist James Crawford asks whether good fences really make good neighbors.The PlaylistSeven songs we nearly missed last year, including tracks by Flo, Becky G and Karol G, Monster and Big Flock.Now Time to PlayThe pangram from yesterday’s Spelling Bee was judicial. Here is today’s puzzle.Here’s today’s Mini Crossword, and a clue: Vernon Dursley, to Harry Potter (five letters).And here’s today’s Wordle. Thanks for spending part of your morning with The Times. See you tomorrow. — GermanP.S. Sapna Maheshwari, a Times business reporter, will cover TikTok and emerging media.Here’s today’s front page. “The Daily” is about Speaker McCarthy.Matthew Cullen, Lauren Hard, Lauren Jackson, Claire Moses, Ian Prasad Philbrick, Tom Wright-Piersanti and Ashley Wu contributed to The Morning. You can reach the team at themorning@nytimes.com.Sign up here to get this newsletter in your inbox. More

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      Chaos and Concessions as Kevin McCarthy Becomes Speaker

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      More from our inbox:Should Babies Sit in First Class on the Plane?A Chatbot as a Writing ToolSupport Family Farms Haiyun Jiang/The New York TimesTo the Editor:Re “McCarthy Wins Speakership on 15th Vote After Concessions to Hard Right” (nytimes.com, Jan. 7):So Kevin McCarthy is finally speaker of the House. It took 15 votes to get him there.But considering the concessions he had to make, the unruly nature of right-wing Republicans and the razor-thin margin, the next two years are likely to be a nightmare for Mr. McCarthy.Sometimes be careful what you wish for.Allan GoldfarbNew YorkTo the Editor:It’s easy to blame Republicans for the debacle of the House leadership vote and all its predictable miserable consequences. But where were the 212 Democrats in all this?Sure, I can see the rationale behind a show of support and unity for Hakeem Jeffries at the outset. He’s much deserving and would have done a fine job. But that’s a battle Democrats were never going to win.Deep into the voting rounds when it became apparent that there would be no win for Kevin McCarthy without further empowering the right-wing extremists, wouldn’t it have been smarter for Democrats to have gotten together to nominate some (any!) moderate Republican and hope to deny both Mr. McCarthy and the extremists their day?Democrats are just as bad as Republicans in putting party loyalty ahead of what’s best for the American people.Russell RoyManchester, N.H.To the Editor:Re “How a Battle for Control Set the Table for Disarray” (news article, Jan. 8):As Emily Cochrane points out, in getting elected speaker, Kevin McCarthy accepted making changes to the rules of the House that are not merely a weakening of the powers of the speakership, but also a danger to the country. If Congress cannot agree to raise the debt ceiling, the United States could default on its debt for the first time. The mere threat is a clear and present danger.Is it possible that some Republican members of the House could, even though they voted for Mr. McCarthy, nonetheless join Democrats in voting against the most dangerous changes in the rules?If, instead, all House Republicans regard their vote for Mr. McCarthy as a vote for the concessions he made to become speaker, then each and every one of them has as much responsibility for the damage these rules will do the country as the radicals who insisted on the changes.Jeff LangChapel Hill, N.C.The writer is a former chief international trade counsel for the Senate’s Committee on Finance.To the Editor:What a day. I imagine that the second anniversary of the Jan. 6 insurrection will go down in history as the day the Democrats commemorated all the patriotic heroes who fought to save our democracy, while simultaneously the Republicans in Congress could be seen doing their level best to destroy it.Sharon AustryFort WorthTo the Editor:It’s not just the far-right representatives who can disrupt the workings of the House. The concession to change the rules to allow a single lawmaker to force a snap vote to oust the speaker gives the Democrats a filibuster-like power.If they want to stop a particular vote for a Republican-sponsored bill, all the Democrats have to do is keep calling for votes to remove the speaker. That vote would take precedence until the Republicans give up and take their bill off the agenda.By insisting on having the power to disrupt the workings of the House, the far-right Republicans have given the same power to the Democrats.Henry FarkasPikesville, Md.To the Editor:Teachers seeking to explain to their students the meaning of a Pyrrhic victory, look no further than Kevin McCarthy!Peter RogatzPort Washington, N.Y.Should Babies Sit in First Class on the Plane? Brian BritiganTo the Editor:Re “Um, Perhaps Your Baby Will Fit in the Overhead Bin?” (Travel, Jan. 7):This article has particular relevance for me, as someone who has traveled more than 100,000 miles every year for the last 25 years. I have seen a number of variations on this theme of babies in first class.The alternative to having one first-class or business seat with an infant on one’s lap is to buy two seats or even three seats in coach, which allow for the parent to have the option of holding the child or placing the child in a travel seat. It would also be fairer for airlines to require that parents buy an actual seat for an infant when it comes to purchasing seats in business or first class.There is a clear difference between a domestic first-class cabin for a two-hour flight and an overnight transcontinental flight where the entire point of paying $5,000 for a seat is to be able to sleep so one may function the next day during back-to-back meetings.My heartfelt advice to those parents contemplating their options is to buy a Comfort Plus or premium coach seat for you as well as for your infant to have ample space and to be a good citizen.Ronnie HawkinsWashingtonTo the Editor:A few years ago, my husband and I flew on Scandinavian Airlines from D.C. to Copenhagen. There were perhaps half a dozen babies on the plane, but we heard not a peep from any of them for the length of the flight. Why? The plane had fold-down bassinets in the bulkheads, and people traveling with babies were assigned those seats.Of course, there are no surefire ways to prevent disruptive passengers, whether they’re children or adults, but the airlines in this country disregard their own role in this mess by making flying such a miserable experience for everyone.Debra DeanMiamiA Chatbot as a Writing Tool Larry Buchanan/The New York TimesTo the Editor:Re “Fourth Grader or Chatbot?” (The Upshot, Jan. 4):I have been a teacher of writing for the past 38 years, and my first reaction to ChatGPT, a new artificial intelligence chatbot, was dread: How could I prevent my students from using this technology? My second reaction was to wonder how I might use it myself.Once we are done with denial and hand-wringing, teachers need to think about how we can use A.I. to help teach student writing. This tool can help generate ideas, offer suggestions, map out structures, transform outlines to drafts and much more that could demystify the writing process.The technology is here to stay; our job will be to advance the education of our students by using A.I. to develop their writing and thinking skills.Huntington LymanMiddleburg, Va.The writer is the academic dean at The Hill School in Middleburg.Support Family Farms Antoine CosséTo the Editor:Re “What Growing Up on a Farm Taught Me About Humility,” by Sarah Smarsh (Opinion guest essay, Dec. 25):I am just one generation removed from the family dairy farm, and my cousins still operate one in Idaho and their lives are tough. In the words of Ms. Smarsh, they’re “doing hard, undervalued work.”Ms. Smarsh makes a strong case against giant agricultural corporations and their “torturous treatment of animals.”Currently, the majority of farm production is driven by corporate greed. However, small-farm, organic-raised meat and produce are expensive alternatives, which are out of reach for low-income, food-insecure families.More moral, sustainable food production is a policy issue that our lawmakers should address. Ms. Smarsh is right: Family farms are being “forced out of business by policies that favor large industrial operations.”Mary PoundAlexandria, Va. More

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      Tensions Flare on House Floor as Rogers Confronts Gaetz

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      Even by the heated standards of the tensions that flared among House Republicans during their four-day push to elect a speaker, what happened on the House floor around 11 p.m. on Friday stood out.Representative Matt Gaetz, Republican of Florida, had declined yet again to vote for Representative Kevin McCarthy of California on a 14th ballot, helping sink McCarthy’s chances at speaker that round.With Republican lawmakers growing irritable after days of fruitless voting, a heated argument broke out between several of them. But Representative Mike Rogers of Alabama, a McCarthy ally who is in line to become the next chairman of the House Armed Services Committee, took it to another level when he stepped toward Mr. Gaetz and had to be restrained.The dramatic moment was captured on C-SPAN’s video cameras, which, lacking the typical restraints placed upon them in a House with a speaker, were free to show whatever moments from the floor its operators deemed newsworthy.Mr. Gaetz had emerged as the most outspoken critic of Mr. McCarthy, lambasting him in increasingly vitriolic and personal terms. He had mocked how Mr. McCarthy has “sold shares of himself” for power and called the Californian the “Lebron James of special interest fund-raising.”At the same time, Mr. Gaetz had reportedly sought a subcommittee chairmanship in the House Armed Services Committee.An Associated Press photographer captured the chaotic moment when Representative Richard Hudson, Republican of North Carolina, pulled Mr. Rogers back from confronting Mr. Gaetz.Neither Mr. Gaetz nor a spokeswoman for Mr. Rogers immediately responded to requests for comment.Mr. McCarthy would be elected speaker on the 15th ballot.Mr. McCarthy downplayed the heated conversations that took place after the 14th ballot. “Oh nothing,” he told reporters who asked what happened. “I mean, we ended up with a tie, and he was able to get the others to be able to go present.” More

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      Many Republicans Against McCarthy Sought to Overturn 2020 Election

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      WASHINGTON — They helped lead the efforts to keep former President Donald J. Trump in power after he lost the 2020 election. They refused to certify that President Biden was the rightful winner. They spread lies that helped ignite a mob of Trump supporters to storm the Capitol on Jan. 6, 2021. On Friday, the two-year anniversary of the Jan. 6 attack, many of the same hard-right lawmakers who served as top lieutenants to Mr. Trump during the buildup to the assault spent the day blocking the bid of Representative Kevin McCarthy of California to be speaker and extracting major concessions from him. While some had received subpoenas in the Jan. 6 investigations and were later referred to the House Ethics Committee, their power showed they were far from outcasts and had paid little price for their actions. Among the ringleaders in both the effort to block Mr. McCarthy and the push to overturn the 2020 election were Representative Scott Perry, the leader of the far-right Freedom Caucus, and Representatives Andy Biggs and Paul Gosar of Arizona. (On Friday, Mr. Gosar and Mr. Perry swung behind Mr. McCarthy after he caved to their demands to dilute the power of the post he is seeking and to give their faction more sway in the House.)Other hard-right holdouts who for days have refused to vote for Mr. McCarthy were Representatives Matt Gaetz of Florida, Lauren Boebert of Colorado and Andy Harris of Maryland. All three met with Mr. Trump or White House officials as they discussed how to fight the election results, according to evidence gathered by the House committee investigating the Jan. 6 attack. Understand the Events on Jan. 6Timeline: On Jan. 6, 2021, 64 days after Election Day 2020, a mob of supporters of President Donald J. Trump raided the Capitol. Here is a close look at how the attack unfolded.A Day of Rage: Using thousands of videos and police radio communications, a Times investigation reconstructed in detail what happened — and why.Lost Lives: A bipartisan Senate report found that at least seven people died in connection with the attack.Jan. 6 Attendees: To many of those who attended the Trump rally but never breached the Capitol, that date wasn’t a dark day for the nation. It was a new start.(Mr. Harris flipped his vote to support Mr. McCarthy on Friday afternoon, but Ms. Boebert and Mr. Gaetz remained against him.) Democrats made sure to single out the group.“This January 6th anniversary should serve as a wake-up call to the G.O.P. to reject M.A.G.A. radicalism — which keeps leading to G.O.P. failures,” Senator Chuck Schumer, Democrat of New York, wrote on Twitter. “But the pandemonium wrought by House Republicans this week is one more example of how M.A.G.A. radicalism is making it impossible for them to govern.” No one in the hard-right group attended what was billed as a bipartisan ceremony on Capitol Hill to mark the anniversary. Only one Republican of any stripe turned up: Representative Brian Fitzpatrick of Pennsylvania, a former F.B.I. agent who is the co-chairman of the centrist Problem Solvers Caucus. The ceremony opened with a moment of silence for House members on the steps of the Capitol to honor the Capitol Police officers who died in the year after the attack.“We stand here with our democracy intact because of those officers,” said Representative Hakeem Jeffries of New York, the top Democrat in the House, as tears welled up in some House members’ eyes. Witnesses who testified before the House investigative committee, including police officers who defended the Capitol, were honored at the White House, including Michael Fanone and Daniel Hodges of Washington’s Metropolitan Police Department, and Harry Dunn, Caroline Edwards, Aquilino Gonell, and Eugene Goodman of the U.S. Capitol Police. Mr. Perry, who was one of the main architects behind a plan to install Jeffrey Clark, a former Justice Department official, as the acting attorney general after he appeared sympathetic to Mr. Trump’s false allegations of widespread voter fraud, said Friday that he fought Mr. McCarthy’s nomination for speaker until he could extract concessions from him to give the House Freedom Caucus and rank-and-file Republicans more influence over leadership. “This place is broken,” Mr. Perry said. “We weren’t going to move from that position until the change is made.” Mr. Biggs, who was still holding out against Mr. McCarthy on Friday afternoon, was involved in a range of organizational efforts in 2020, including meetings aimed at attracting protesters to Washington on Jan. 6, according to the House Jan. 6 committee. Mr. Gosar, who voted against Mr. McCarthy on multiple ballots but changed his vote to support him on Friday, spread numerous lies about the 2020 election and spoke at “Stop the Steal” rallies arranged by Ali Alexander, a prominent organizer. The House committee that investigated the Jan. 6 attack has referred Mr. Perry and Mr. Biggs to the Ethics Committee for refusing to comply with its subpoenas. Not every Republican involved in blocking Mr. McCarthy’s ascension was among those who voted against certifying Mr. Biden’s victory.Representative Chip Roy of Texas started out as an enthusiastic supporter of Mr. Trump’s claims of a stolen election but gradually grew alarmed about the push to invalidate the results and ultimately opposed Mr. Trump’s bid to get Congress to overturn them on Jan. 6, 2021.Mr. Roy, an initial holdout against Mr. McCarthy, led negotiations to try to bring about a deal that would make Mr. McCarthy the speaker in exchange for changes to House rules.“We believe that there ought to be fundamental changes about and limits on spending after the massive bloated omnibus spending bill in December,” Mr. Roy said, referring to the $1.7 trillion government funding package passed by Congress last month. “And so we’ve talked about those. We’ve put a lot of those things in place.” More

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      Just What Do McCarthy’s Antagonists Want, and Why Won’t They Budge?

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      The Republican holdouts are showing that party leaders’ usual methods of arm-twisting no longer work. “It’s not about policies, it’s about the fight,” said one former operative.As the Republicans’ drama over Representative Kevin McCarthy’s bid to become House speaker persists for round after round of negotiations and roll-call votes, one puzzling question is just what, exactly, the rebels want.To the endless frustration of McCarthy and his allies, the insurgents’ demands have been heavy on two factors: internal procedural rules meant to expand the power of the far right within the House, and the insurgents’ desire to present themselves as uncompromising foes of Democrats’ agenda. But more than anything else, McCarthy’s most die-hard opponents just seem intent on taking him down.“It’s not about policies, it’s about the fight,” said Doug Heye, a former aide to Representative Eric Cantor, the onetime majority leader who lost his seat in a stunning 2014 upset by a far-right challenger, David Brat. “The more you hear the word ‘fight’ or ‘fighter,’ the less you hear about a strategy for winning that fight.”The longer the speaker battle has dragged on, the more McCarthy’s supporters have expressed exasperation at this state of affairs. Representative Dan Crenshaw of Texas accused the holdouts of mouthing “stupid platitudes that some consultant told you to say on the campaign trail.” Representative Don Bacon, who holds a swing seat in Nebraska, has taken to calling them “the chaos caucus” and the “Taliban 20.”Such strident language isn’t new: Representative John Boehner, who was hounded out of the speakership in 2015 by the ultraconservative Freedom Caucus, later lashed out at one of its co-founders, Representative Jim Jordan of Ohio, as a “political terrorist” and a “jerk.” (Jordan is now backing McCarthy, and is set to run the powerful Judiciary Committee if and when the speaker fight is resolved.)Fueled by the grass-roots rightOne of the peculiarities of this speaker vote has been watching McCarthy’s team try to marshal the conservative-industrial media complex, which helped power the rise of political outsiders like Donald Trump and has steadily weakened the ability of party leaders to keep backbenchers in line.“We’ll see what happens when Tucker and Sean Hannity and Ben Shapiro start beating up on those guys,” Representative Guy Reschenthaler of Pennsylvania wistfully told reporters at the Capitol this week. “Maybe that’ll move it.”But Tucker Carlson did not beat up on those guys, instead celebrating the speakership debate as “pretty refreshing.” Nor is it clear that Fox News can command the exclusive loyalties of the right. Witness how, during the Republican primary for Senate last year in Pennsylvania, a network of conservative blogs and podcasts fueled the sudden rise of Kathy Barnette, a little-known conservative media personality who was able to throw a last-minute fright into Trump and Hannity’s preferred candidate, Mehmet Oz.“Is this a game show?” a frustrated Hannity pressed one of the House holdouts, Representative Lauren Boebert of Colorado, on his Fox News show on Wednesday night. She didn’t back down.Chris Stirewalt, a former editor at Fox News, said that “what happens online, on talk radio and on Fox prime time has been and will continue to be the harbinger of what House Republicans will do.” He added that the representatives and congressional aides he was speaking with were “all talking about how their positions were playing with the different hosts and sites.”F.A.Q.: The Speakership Deadlock in the HouseCard 1 of 7A historic impasse. More

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      Kevin McCarthy’s Business Ties Complicate His Rise to Power

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      To land the House speaker position, the California Republican will have to win over opponents who question his ties to Silicon Valley and his commitment to right wing causes.The House, divided.Michael Reynolds/EPA, via ShutterstockKevin McCarthy, Inc.Representative Kevin McCarthy, Republican of California, is still working on landing the House speaker gig after six failed attempts. It’s the first such House floor showdown in a century, and business is at the heart of his woes.Mr. McCarthy’s critics say he’s too friendly with Big Tech. The ultraconservatives who have stymied his rise to power list a number of big objections with Mr. McCarthy. They say that he isn’t sufficiently committed to right-wing causes and that he hasn’t pushed back enough against perceived anti-conservative bias on social media. Yet the would-be speaker published a policy proposal over the summer to “Stop the Bias and Check Big Tech” if Republicans took control of the House.Mr. McCarthy’s messaging has not convinced hard-line party members. His hot-and-cold ties to Silicon Valley haven’t helped his standing either. Jeff Miller, a political adviser to Mr. McCarthy, also represents Apple and Amazon, and two former staff members are now Big Tech lobbyists. Meanwhile, Mr. McCarthy has benefited from tens of thousands of dollars in donations from tech companies and executives.The Republican leader has also alienated onetime corporate allies. Lobbyists once bet big on Mr. McCarthy, but relations have soured somewhat after he embraced former President Donald Trump’s antagonistic approach to corporations with perceived ties to the left.The Chamber of Commerce endorsed 23 Democrats for the House in 2020 and 15 won. That put the speakership out of reach for Mr. McCarthy at that time and he’s reportedly been sore since. The Republican pushed for Suzanne Clark, the Chamber’s C.E.O., to be removed but the organization was unmoved, and issued a statement in support of her.Even before Mr. McCarthy’s failure this week, lobbyists were giving up on him and Washington insiders — including Paul Ryan, the former Republican House speaker now at the executive advisory firm Teneo — were telling executives to stay out of the political fray.Meanwhile, the business of the government is stuck. Until Republicans resolve their internal conflicts, the House is at a standstill. Members have not been sworn in, administrative tasks and constituent services have been delayed and legislative work is on the back burner. Mr. McCarthy and his allies held talks with the holdouts last night to find a resolution. Democrats could step in to help (members of both parties have apparently discussed it), but that doesn’t appear to be on the table right now.Mr. McCarthy has vowed to continue for as long as it takes. In 1923, it took nine ballots to elect a speaker. The House is scheduled to meet again at noon.HERE’S WHAT’S HAPPENING The Justice Department moves to seize Robinhood stock tied to Sam Bankman-Fried. Federal prosecutors argued on Wednesday that the $465 million worth of shares in the online brokerage weren’t part of the FTX bankruptcy estate. Bankman-Fried bought the shares through an investment vehicle with money borrowed from Alameda Research, FTX’s trading affiliate.Walgreens will sell abortion pills. The pharmacy giant said it would dispense mifepristone, becoming the first national chain to do so after the F.D.A. announced new rules for dispensing the drug. CVS and Rite Aid said they were still reviewing the agency’s new policy.China defends its handling of the Covid outbreak. Facing criticism from the World Health Organization and President Biden over the accuracy of its coronavirus tally, Beijing fired back on Thursday, saying the situation was “controllable.” It also plans to reopen its border with Hong Kong on Sunday after a three-year closure.The man behind the college admissions scandal is sentenced. Rick Singer, whom prosecutors accused of orchestrating a $25 million cheating scheme that involved actors, business executives, doctors and more, must serve three and a half years in prison. Singer, who had become an informant, received the longest sentence of anyone tied to the scandal.CES kicks off today. Enormous crowds are expected to return to the tech trade show in Las Vegas this year, after the pandemic clamped down on in-person attendance. Expect plenty of announcements about new televisions, smart-home gadgets, electric cars and more.The bleeding continues at Big Tech Amazon said on Wednesday that it would drastically expand its planned layoffs to a staggering 18,000 jobs as it seeks to rein in costs. Coupled with Salesforce’s plans to lay off about 8,000 employees, it’s the latest sign that tech giants are still grappling with the consequences of overhiring during the pandemic boom.Amazon’s cuts amount to around 6 percent of its corporate work force and will be focused on human resources and what the e-commerce giant calls its Stores division: its main online site, its field operations and warehouses, its physical stores and other consumer teams. (Hourly warehouse workers aren’t part of the tally.) That’s up from the roughly 10,000 the company had been weighing earlier.Salesforce is also laying off 10 percent of its employees and cutting back on office space. The move comes after a series of shake-ups at the business software giant, including the announced departures of Bret Taylor, its co-C.E.O. (reportedly after strains in his relationship with Marc Benioff, the company’s co-founder) and Stewart Butterfield, the C.E.O. of Slack, the messaging app Salesforce bought for nearly $28 billion.It’s a notable retrenchment for Salesforce, whose reputation over the past decade has become one of ever-growing ambition: The company is the largest private employer in San Francisco, and its flagship office tower is the city’s tallest.Both rounds of layoffs arose out of overexpansion. Amazon more than doubled its work force during the pandemic, to 1.5 million, as it became an indispensable seller to locked-down households. Salesforce nearly doubled its head count over the past three years, to 80,000 in October.Those hiring sprees have since run into a slowing global economy, with Amazon having warned in the fall that it could see its worst growth rate since 2001. “We hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that,” Benioff wrote in a letter to employees.Amazon and Salesforce aren’t alone: Meta recently laid off 13 percent of its work force, while Snap and Twitter have also resorted to huge job cuts. Overall, the tech industry laid off over 153,000 workers last year, according to Layoffs.fyi. Things may not get better this year, with analysts cautioning that tech companies’ customers may further clamp down on spending, potentially leading to yet more cost cuts.“The parallels with Russia and Ukraine are hard to ignore. We must not make the same mistakes with Xi Jinping that we did with Vladimir Putin.” — Anders Fogh Rasmussen, a former secretary general of NATO, urged a robust and unified response to deter China from attacking Taiwan. His comments, made during a visit to Taipei, highlighted worries in Europe over China’s growing assertiveness in Asia.The Fed’s big challenge: exuberant marketsInvestors got the post-Christmas “Santa Claus rally” they were hoping for, a buying spree that was fueled in part by slumping energy prices. But the big cloud hanging over markets remains: the prospect that central banks will be emboldened to tame inflation with more interest rate increases.Fed officials gave investors an unambiguous warning on Wednesday: Don’t start pricing in a dovish pivot anytime soon. Many on Wall Street are banking on the U.S. central bank to end its policy of jumbo rate increases in the first half of 2023, and to begin cutting by year-end.But the Fed sees any pivot prediction as misguided, warning that such thinking could complicate its efforts to bring prices under control. Minutes from a December Fed meeting released on Wednesday, did not mince its words. “No participants anticipated that it would be appropriate” to cut rates.As the Times’s Jeanna Smialek reported, policymakers are concerned that markets might misinterpret any decision to slow the pace of rate moves in the near term as a sign that the Fed believed it was making enough progress in bringing inflation closer to its 2 percent target. (The I.M.F. has also weighed in, saying that it doesn’t believe the U.S. has “turned the corner on inflation yet” and that the Fed should “stay the course.”)The markets still don’t seem to be getting the message. “Right now data signals are mixed — like an ink blot, investors can see what they want,” Elsa Lignos, RBC Capital Market’s global head of FX Strategy, said in a note to clients this morning. She pointed out that manufacturing prices were in decline, but that job vacancies remained elevated, suggesting wages could continue creeping higher.A late-afternoon surge on Wednesday helped the S&P 500 and Nasdaq close higher. Between the Dec. 27 open and Wednesday’s close, the S&P 500 rose 0.8 percent, capping off the seventh consecutive annual Santa rally, measured by the stock market’s performance over the seven trading days that follow Christmas. The most bullish on Wall Street see such rallies as a sign that investors will keep buying well into the new year.Investors and Fed officials will be closely watching Friday’s jobs report. The Fed is concerned that the labor market is still too tight, belying the recent headline-grabbing layoffs at tech giants. A jobs report showing big gains in wages and hiring could force the Fed to remain locked in to its “higher for longer” rates policy, adding to additional market volatility.THE SPEED READ DealsShares in GE HealthCare Technologies rose 8 percent in their debut on Wednesday, after being spun off from General Electric. (Bloomberg)Western Digital has reportedly resumed talks to buy Kioxia, a Japanese memory chip maker. (Bloomberg)A unit of Tokyo Gas is said to be in advanced talks to buy the U.S. natural gas producer Rockcliff Energy for about $4.6 billion. (Reuters)Fanatics reportedly plans to divest its 60 percent stake in Candy Digital, a sports N.F.T. company. (CNBC)PolicyEuropean regulators fined Meta 390 million euros after finding it had illegally forced users to effectively accept personalized ads. (NYT)The S.E.C. has objected to Binance.US’s $1 billion bid to purchase the bankrupt crypto lender Voyager Digital. (Reuters)Silvergate, a bank, was forced to sell assets at a steep loss to cover $8.1 billion in customer withdrawals after the collapse in November of FTX. (WSJ)Best of the restA self-described Tesla fan filed a Tesla trademark for a boat and jet without the company’s knowledge. (Bloomberg)Amazon, SiriusXM and Spotify are cutting back on their spending on new podcasts. (Bloomberg)The stars of the 1968 film “Romeo and Juliet” sued the movie’s distributor, Paramount, for $500 million over being made to film a nude scene while they were teens. (NYT)A Princeton student said he had created a program to detect whether an essay was written by the A.I. chatbot ChatGPT. Meanwhile, New York City’s education department banned the use of ChatGPT on some city devices and internet networks. (Insider, Chalkbeat New York)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Trump Calls on Republicans to Embrace McCarthy for Speaker

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      Former President Donald J. Trump on Wednesday made a direct appeal to House Republicans to support Representative Kevin McCarthy of California for speaker, after Mr. McCarthy lost three successive votes for the post amid a hard-right rebellion led by some of Mr. Trump’s most loyal allies in Congress.“Some really good conversations took place last night, and it’s now time for all of our GREAT Republican House Members to VOTE FOR KEVIN, CLOSE THE DEAL, TAKE THE VICTORY,” Mr. Trump, who is running for president, wrote on his website, Truth Social.On Tuesday, as the California Republican suffered defeat after humiliating defeat on the House floor, Mr. Trump had refused to reiterate his endorsement for Mr. McCarthy, telling NBC News’ Garrett Haake, simply, “We’ll see what happens.”Mr. Trump and Mr. McCarthy then spoke Tuesday night, after the embarrassing once-in-a-century debacle on the House floor and after Mr. Trump made his tepid comment on NBC.After the conversation, Mr. Trump arrived at a more full-throated statement reiterating his backing for Mr. McCarthy, though he still tempered his praise.“REPUBLICANS, DO NOT TURN A GREAT TRIUMPH INTO A GIANT & EMBARRASSING DEFEAT,” he wrote. “IT’S TIME TO CELEBRATE, YOU DESERVE IT. Kevin McCarthy will do a good job, and maybe even a GREAT JOB — JUST WATCH!”Whether Mr. Trump can sway enough of the holdouts who are opposing Mr. McCarthy is an open question, and one that will test Mr. Trump’s ongoing influence over the House Republican conference, a wing of which has crafted itself in his image, as he mounts his third presidential campaign.Despite Mr. Trump’s earlier endorsement of Mr. McCarthy and his effort to whip votes for him ahead of the speaker vote, 20 Republicans still voted against Mr. McCarthy. The most aggressive McCarthy detractor, Representative Matt Gaetz, Republican of Florida, is also one of Mr. Trump’s most loyal allies in Congress. Mr. Trump’s support for Mr. McCarthy has done nothing to temper his opposition. More

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      How Far Right Are the 20 Republicans Who Voted Against McCarthy

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      The Republicans who blocked Representative Kevin McCarthy of California from becoming speaker on Tuesday include some of the most hard-right lawmakers in the House; most denied the 2020 election, are members of the Freedom Caucus, or both. Here’s a closer look at the 20 lawmakers. Re-elected representatives Newly elected Andy Biggs Ariz. 5th Dan Bishop […] More