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House Republicans on Wednesday look poised to make a fresh effort to pick the next speaker for their chamber, a day after top House Republican Kevin McCarthy came up short in three rounds of voting.
The House must kick off the new congressional session with the election of a speaker, and it’s required to keep voting until one is chosen. There hasn’t been a need for multiple votes for a speaker’s election since 1923, when nine rounds of voting were required.
McCarthy can handle no more than four GOP defections given his party’s 222-212 majority, but more than that number have repeatedly opposed the California congressman. In Tuesday’s third vote, the number of Republican lawmakers voting against McCarthy rose to 20, up from 19 in the first two rounds. Those 20 backed GOP Rep. Jim Jordan of Ohio, even as Jordan gave a speech in support of McCarthy and hasn’t been voting for himself.
In the wake of the third failed attempt to pick a speaker, the House voted to adjourn until noon Eastern on Wednesday.
Analysts have been warning that the tensions over what’s typically a ceremonial election could signal that the GOP-run House will be dysfunctional throughout 2023 —and that might affect markets eventually.
“If the House deadlock continues for weeks — or longer — the markets may have to worry about fiscal policy uncertainty,” said Greg Valliere, chief U.S. policy strategist at AGF Investments, in a note.
“If House Republicans can’t even elect a leader, how will they respond when a debt default crisis looms later this year?”
Former President Donald Trump offered support for McCarthy in a post on Wednesday morning on Truth Social, his social network.
“It’s now time for all of our GREAT Republican House Members to VOTE FOR KEVIN, CLOSE THE DEAL, TAKE THE VICTORY,” Trump wrote.
“DO NOT TURN A GREAT TRIUMPH INTO A GIANT & EMBARRASSING DEFEAT. IT’S TIME TO CELEBRATE, YOU DESERVE IT. Kevin McCarthy will do a good job, and maybe even a GREAT JOB — JUST WATCH!”
Betting market PredictIt on Wednesday morning was giving McCarthy around a 56% chance of becoming speaker, while No. 2 House Republican Steve Scalise’s chances were around 33% and Jordan’s stood at 6%.
Related: How betting markets got the midterms wrong, and why Biden’s a ‘great bet’ for 2024
Republicans have taken control of the House thanks to wins in November’s midterm elections, returning to power in that chamber after four years in the minority.
But the GOP’s hopes for a strong red wave two years into President Joe Biden’s term were dashed, as the party has claimed just a small House majority and Democrats have maintained their grip on the Senate.
U.S. stocks
SPX,
DJIA,
appeared on track for gains on Wednesday. The main equity gauges finished lower on Tuesday in 2023’s first session, after the S&P 500 benchmark fell 19% in 2022, hit by the Federal Reserve’s interest-rate hikes as the central bank tries to rein in inflation.
Now read: Isolated and humiliated, Russia is biggest geopolitical threat of 2023, analysts say
Plus: Brace yourself: Your tax refund could shrink in 2023. Here’s why.
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