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Tag: Domestic Politics

  • Embattled Speaker McCarthy tries new 45-day funding tactic to avoid government shutdown

    Embattled Speaker McCarthy tries new 45-day funding tactic to avoid government shutdown

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    House Speaker Kevin McCarthy, with mere hours left before a federal government shutdown, tried a new tactic Saturday.

    McCarthy, the California Republican, will now try to push a 45-day funding bill through the House, but will need votes from Democrats for success.

    That alliance could keep government open but puts a continued speakership role for McCarthy again at risk.

    Republican lawmakers met behind closed doors Saturday morning. As written now, the proposed House action would fund the government at current 2023 levels for 45 days and provide money for U.S. disaster relief.

    “Knowing what transpired through the summer — the disasters in Florida, the horrendous fire in Hawaii and also disasters in California and Vermont — we will put the supplemental portion that the president asks for in disaster there, too,” McCarthy said after the meeting.

    The new approach would leave out the Biden administration’s fresh ask for more aid to Ukraine.

    “We’re going to do our job,” McCarthy said Saturday. “We’re going to be adults in the room. And we’re going to keep government open.”

    An expiring midnight deadline to fund the government puts everything from the Social Security COLA boost to national parks, passport issuance and food aid at risk. Stock markets
    SPX,
    which have risen during recent short-lived government closures, were mindful that this shutdown could impede the Federal Reserve’s efforts to fight inflation with its interest-rate lever.

    What’s more, without a deal in place by Sunday, federal workers will face furloughs and more than 2 million active-duty and reserve military troops will work without pay.

    Read: U.S. government shutdown: Here’s how it could affect you, from food aid to getting your passport

    Opinion: Government shutdown looms: Here’s how to help preserve your investment portfolio.  

    The House was preparing for a quick vote Saturday on the plan, but Democrats tapped the brakes, seeking time so they could read the 71-page offering. Across the Capitol, the Senate was opening a rare weekend session and hoping to advance its own stopgap plan.

    McCarthy will have to rely on Democrats for passage of the 45-day plan because the House’s hard-right flank has said it will oppose any short-term measure.

    McCarthy was setting up a process for voting that will require a two-thirds supermajority, which works out to about 290 votes in the 435-member House for passage. Republicans hold a 221-212 majority, with two vacancies.

    The Associated Press contributed.

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  • Betting markets now see a Trump 2024 win as likelier than a Biden victory — and give Newsom better chances than Trump’s GOP rivals

    Betting markets now see a Trump 2024 win as likelier than a Biden victory — and give Newsom better chances than Trump’s GOP rivals

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    Donald Trump’s chances of winning the 2024 presidential election appear to be improving this week, as betting markets tracked by RealClearPolitics put them just ahead of President Joe Biden’s for the first time this year — at 32%, compared with 30%.

    That’s illustrated in the below chart, which also shows Democratic Gov. Gavin Newsom of California with an 8% chance of getting elected president, even though he has ruled out a White House run repeatedly. Newsom’s chances are ahead of those for Trump’s rivals for the Republican nomination, such as Florida Gov. Ron DeSantis and former U.N. Ambassador Nikki Haley.

    To be sure, betting markets got last year’s midterm elections wrong and can be poor predictors for several reasons. The clientele for political gambling tends to be right-leaning and male, and betting markets can get caught up in narratives as well as skewed by unreliable polls, one expert in political gambling and prediction markets told MarketWatch last year.

    Trump’s chances of winning the 2024 presidential election have hit a new high for the year, as Biden seems to fade a bit, DeSantis has seen a big drop, and some bettors like Michelle Obama.


    RealClearPolitics

    Trump’s improved chances come as he skipped a GOP primary debate for a second time, instead giving a speech Wednesday night directed at Michigan auto workers in which he suggested that none of the debaters deserved to become his vice president.

    The former president has 56.6% support in national primary polls, according to a RealClearPolitics moving average of surveys. He has been indicted this year in two separate election-interference cases, a hush-money case and a classified-documents case, but many Republican voters have rallied around him.

    DeSantis is a distant second in those polls with 14.4% support, followed by Haley at 5.8%, entrepreneur Vivek Ramaswamy at 5.1% and former Trump VP Mike Pence at 4.2%. In aggregate, the non-Trump GOP candidates get 35.9% support in RCP’s average of national polls, compared with Trump’s 56.6%. In RCP’s average of surveys for Iowa, which holds the first major contest in the GOP primary, they get 46.4% support vs. his 49.2%.

    Now read: DeSantis says at debate that Trump’s spending ‘set the stage for the inflation that we have now’

    See also: Gas tax a target at Republican debate. Here’s what you’re paying now.

    Plus: Instagram, other social media should be banned for anyone 16 and under, Ramaswamy says at GOP debate

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  • Elizabeth Warren, Bernie Sanders urge FTC’s Khan to finalize controversial merger rules

    Elizabeth Warren, Bernie Sanders urge FTC’s Khan to finalize controversial merger rules

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    A group of Democrats in the House and Senate are imploring the country’s top antitrust enforcement cop to implement sweeping new changes to its merger-review protocol, according to a new letter viewed exclusively by MarketWatch.

    The Federal Trade Commission, along with the Justice Department’s antitrust division, recently proposed changes to forms that companies proposing deals of a certain size must submit to the government, which critics say would suppress the market for mergers and acquisitions.

    The new form will require companies to provide much more information to antitrust enforcers before they seek to consummate a deal. Most controversially, that would include narrative information about the strategic rationale for a transaction as well as studies, surveys, analyses and reports which were prepared by the company as it considered the deal.

    “The new proposed [form] and associated instructions will facilitate efficient premerger review and ensure effective enforcement of antitrust laws,” wrote the lawmakers, including Sens. Elizabeth Warren, a Massachusetts Democrat, and Bernie Sanders of Vermont, an independent who votes with Democrats.

    The letter, dated Sept. 27, was also signed by Democrats including Sen.  Mazie Hirono of Hawaii, and Reps. Becca Balint of Vermont, Henry Johnson of Georgia, Rashida Tlaib of Michigan, Summer Lee of Pennsylvania, Lori Trahan of Massachusetts, Ilhan Omar of Minnesota, Mark Pocan of Wisconsin, Katie Porter of California and Greg Casar of Texas. No Republicans signed the letter.

    The lawmakers lament the state of the U.S. economy today, arguing that the updated premerger process is necessary to combat growing concentration of industry and the digital transformation of the economy.

    “Unchecked consolidation hurts consumers, small businesses, workers, and the economy,” the letter reads. “Consolidation leads to higher prices, less innovation, and reduced quality for consumers. It prevents small businesses from entering markets or competing fairly: for example it is twice as expensive for small businesses to borrow money compared to dominant ones, and there are fewer startups in states where a few companies dominate markets.”

    The lawmakers note that since the current premerger notification process was instituted nearly 45 years ago, the required forms have not been updated, and only require companies to provide basic information that don’t “give regulators clarity as to whether a deal may substantially lessen competition.”

    The FTC and DOJ proposed the changes in July, and then extended the period for accepting public comments on the proposal to Sept. 27, and it’s possible the final rule is amended before the agencies adopt it. There is no set timeline for when the FTC will vote to adopt any changes.

    Some antitrust experts are skeptical that the proposed changes will hold up in court, if they are implemented as proposed.

    “The proposed changes are likely to face a rocky path ahead,” wrote Justin Hurwitz of the University of Pennsylvania’s Center for Technology, Innovation & Competition, in a recent analysis.

    “They appear to violate legislative intent that [the premerger process] not unduly delay transactions or require the production of materials the firms did not already create as par of evaluating the transaction.”

    Hurwitz added that “the premerger notification process serves an important function, but it is a tax on on all mergers,” and predicted that the proposed changes will likely not “survive judicial review.”

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  • Instagram, other social media should be banned for anyone 16 and under, Ramaswamy says at GOP debate

    Instagram, other social media should be banned for anyone 16 and under, Ramaswamy says at GOP debate

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    Republican presidential hopeful Vivek Ramaswamy took aim at social-media companies during the second GOP presidential debate, saying Wednesday night that he would aim to ban anyone age 16 or under from using those companies’ platforms.

    “If you’re 16 years old or under, you should not be using an addictive social-media product — period,” said Ramaswamy, an entrepreneur who ranks fourth in GOP primary polls, according a RealClearPolitics average.

    He said this move would help with improving mental health and stopping the fentanyl epidemic. Earlier, Ramaswamy had talked about a mom and dad in Iowa whose son died after the teen bought Percocet laced with fentanyl through Snapchat.

    That type of ban would hit companies such as Meta Platforms
    META,
    -0.41%
    ,
    the parent of Instagram and Facebook; Snap
    SNAP,
    +1.80%
    ,
    the parent of Snapchat; X, formerly known as Twitter; and ByteDance, the Chinese parent of TikTok.

    Ramaswamy has started using TikTok in his White House campaign, and another GOP presidential candidate, former U.N. Ambassador Nikki Haley, attacked him over that at another point in the debate.

    “TikTok is one of the most dangerous social-media apps we could have,” she said. “Honestly, every time I hear you, I feel a little bit dumber.”

    Now read: Could Congress actually ban TikTok in the U.S.? Analysts see ‘procedural and practical hurdles’

    And see: GOP presidential debate: DeSantis says Trump’s spending ‘set the stage for the inflation that we have now’

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  • Here’s how the Republican presidential candidates say they’ll whip inflation

    Here’s how the Republican presidential candidates say they’ll whip inflation

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    Inflation remains a top concern among Americans, so what do the Republicans seeking President Joe Biden’s job say they’ll do about it?

    MarketWatch asked the 2024 GOP White House hopefuls to give at least three ways that they would address the elevated prices that have blown up many household budgets.

    Most campaigns provided responses, while some didn’t but have offered proposals in other venues. See what they’re all planning below.

    The economy is the No. 1 issue for Republican voters, according to a recent Wall Street Journal poll, which found 36% citing the economy generally and an additional 10% citing inflation.

    MarketWatch contacted the eight contenders who took part in their primary’s first debate, along with former President Donald Trump, who skipped the debate, and two relatively well-known contenders who failed to qualify for the first debate, Larry Elder and former Congressman Will Hurd. They are listed below in order of their ranking in the latest polls, based on a RealClearPolitics moving average.

    Inflation was low when Trump became president, with prices rising less than 2% a year. That was even considered a problem before the COVID-19 pandemic, with inflation often characterized as stubbornly or persistently low. Inflation began to spike in 2021, shortly after Biden took office, due to a global shortage of goods and a huge rebound in consumer demand following the pandemic’s early stages. Economists say massive stimulus by both the Trump and Biden administrations as well as low interest rates fostered by the Federal Reserve helped to push inflation to a 40-year high.

    Biden has stressed that inflation, as measured by the consumer-price index, has “fallen by around two-thirds,” and he and his team have talked up their efforts to lower costs for prescription drugs and insulin, to crack down on junk fees for a range of services, and to use the Strategic Petroleum Reserve to lower gasoline prices. Biden’s re-election campaign didn’t respond to MarketWatch’s request for comment.

    Donald Trump

    “I would get inflation down,” Trump said in a recent interview with NBC’s “Meet the Press,” while saying that “we did a great job with inflation.” His campaign pointed MarketWatch to a number of policy proposals in which Trump himself is quoted.

    Former President Donald Trump walks over to speak with reporters before departing from Atlanta’s airport last month.


    AP

    • The former president says he’ll rein in what he calls Biden’s “wasteful spending,” which Trump says is key to stopping inflation. Trump is proposing to use what’s known as impoundment authority to reduce federal spending. That term refers to the ability of a president to withhold congressionally appropriated funds from their intended use, according to the Committee for a Responsible Federal Budget.

    • Trump also calls for boosting energy output. “When I’m back in the White House, I will immediately unleash energy production, slash regulations, like I did just three years ago, and repeal Biden’s tax hikes to get inflation down as fast as possible, and it will go quickly, so that interest rates can get back under control,” Trump says on his campaign website. “I would get inflation down, because drill we must,” he told “Meet the Press.”

    • A Trump spokesman did not respond when asked for specifics about which Biden-approved tax increases Trump would repeal. The former president and his advisers, meanwhile, have reportedly discussed deeper cuts to both individual and corporate rates that would build on the 2017 Tax Cuts and Jobs Act.

    Ron DeSantis

    Florida Gov. Ron DeSantis, says a spokesman, “will reduce inflation by, among other measures, tackling government spending, unleashing domestic energy and removing burdensome Biden administration regulations.”

    Florida Gov. Ron DeSantis speaks in July during a press conference in West Columbia, S.C.


    AP Photo/Sean Rayford

    • In his economic plan, DeSantis leans heavily into energy policy for addressing inflation. “DeSantis will unleash our domestic energy sector, modernize and protect our grid and advance American energy independence. This will not only increase our economic and national security while reducing inflation, [but] it will also help fuel a manufacturing renaissance that will create jobs, revitalize our communities and improve our standard of living,” says his plan.

    • He told “CBS Evening News with Norah O’Donnell” that, as president, he would “stop spending so much money. We need a president that’s going to be a force for spending restraint, because that’s one of the root causes, with Congress spending so much.” He criticized both Democrats and Republicans for government spending.

    Vivek Ramaswamy

    Republican presidential candidate Vivek Ramaswamy speaks in April at an event in Iowa.


    AP

    “This isn’t complicated,” entrepreneur and author Vivek Ramaswamy said in a recent post on X. “Fight inflation, unleash growth by taking the handcuffs [off] the U.S. energy sector & dismantling the regulatory state.” His campaign didn’t respond to MarketWatch’s request for comment, but his campaign website offers the following proposals:

    • “Drill, frack & burn coal : abandon the climate cult & unshackle nuclear energy.”

    • “Launch deregulatory ‘Reagan 2.0’ revolution: cut > 75% headcount amongst U.S. regulators.”

    • Ramaswamy is also calling for dramatically changing the Federal Reserve, by ending the central bank’s dual mandate of keeping inflation low and maintaining full employment. “Limit the U.S. Fed’s scope: stabilize the dollar
      DXY
      & nothing more,” his campaign site says.

    Nikki Haley

    A spokesman for Nikki Haley’s campaign pointed to a Fox Business interview on Wednesday in which she called for ending the federal gas tax and cutting spending, as well as to her speech Friday in New Hampshire on her economic plan.

    Republican presidential candidate Nikki Haley is a former U.S. ambassador to the United Nations and former South Carolina governor.


    Getty Images

    • “We want to eliminate the federal gas tax completely,” Haley told Fox Business. “We have to get more money in our taxpayers’ pockets.” That tax helps pay for highways, but she said the system isn’t working, echoing a point that some policy analysts have previously made. Biden pushed for temporarily suspending the federal gas tax in 2022, but Congress didn’t provide sufficient support for his proposal. In her economic speech, Haley also promised to cut income taxes for working families and make permanent the tax cuts that small businesses scored in 2017’s GOP tax overhaul.

    • The former U.S. ambassador to the United Nations said members of Congress are “spending like drunken sailors,” as she promised to reduce the federal government’s outlays. “I will veto any spending bill that doesn’t take us back to pre-COVID levels,” she told Fox Business, referring to budgets that date to before the onset of the coronavirus pandemic in March 2020.

    • Haley in her speech Friday pledged to support the U.S. energy industry, as she suggested that Washington has been “stifling it.” She said: “We’ll drill so much oil and gas, families will save big on their utility bills.”

    Mike Pence

    A spokesman for Pence’s campaign pointed to the former vice president’s plan for “ending inflation,” which calls for actions such as reducing the federal government’s spending and changing the Federal Reserve’s job description.

    Former Vice President Mike Pence served as governor of Indiana and as a congressman before becoming Donald Trump’s running mate in 2016.


    AP

    • A Pence administration would “end runaway deficits by freezing non-defense spending, eliminating unnecessary government programs, repealing over $3 trillion in new spending under Biden, and reforming mandatory programs that drive our debt,” the plan says. Earlier this year, he urged “commonsense and compassionate” reforms for programs such as Social Security and Medicaid.

    • Pence wants to end the Fed’s dual mandate, which calls for the U.S. central bank to focus on full employment and stable prices. “Trying to serve two, often contradictory goals has led to wild fluctuation in rates,” his plan says, adding that it’s better to “leave employment policy to the president and Congress.”

    • The former vice president’s plan said he aims to bring supply chains and production “back home,” and that would happen by “removing regulatory burdens, enacting pro-growth tax policies, and ensuring access to abundant American energy.” In other words: “We will fight inflation by making America the best place to do business again.”

    • Similar to his 2024 GOP rivals, Pence blasts Biden’s energy policies, though some of the Democratic incumbent’s stances, such as his approval of the Willow drilling project in Alaska, have also been criticized by environmental groups. Pence’s plan says: “It is time to reverse Biden’s attack on American energy by restarting oil and gas leasing on federal lands, opening the Arctic and offshore regions for exploration
      XOP,
      approving safe transportation of oil and gas, mining rare earth minerals, and rejecting climate change hysteria that is causing U.S. energy
      XLE
      production to fall.”

    Chris Christie

    Former New Jersey Gov. Chris Christie addresses a New Hampshire audience in April.


    AP Photo/Charles Krupa

    Chris Christie’s White House campaign didn’t respond to MarketWatch’s requests for comment, but the former New Jersey governor has emphasized that reducing government spending will help tame inflation.

    “The out-of-control government spending has created this inflation,” Christie said in June during a CNN town hall. “I mean, even Larry Summers, who I don’t agree with much on, former Democratic Treasury secretary, warned Joe Biden, ‘Don’t do this spending. It’s going to cause the inflation.’ So, first, we need to bring spending down, and we’ve talked about that before.”

    Related: Larry Summers has a new inflation warning

    Tim Scott

    U.S. Sen. Tim Scott pointed to reducing the federal government’s spending and repealing one of Biden’s signature legislative packages, when asked about how he would address inflation.

    Tim Scott, a U.S. senator from South Carolina, speaks last month during the presidential debate in Milwaukee.


    Getty Images

    • Scott, from South Carolina, said in a statement that he would aim to “snap non-defense discretionary spending back to the pre-COVID 2019 baseline.” He described that as stopping Democrats from “turning the temporary pandemic into permanent socialism.”

    • Scott said he would rescind the Inflation Reduction Act, which is Democrats’ big economic package aimed at addressing climate change, capping drug costs and raising hundreds of billions of dollars through taxes on corporations. “The Inflation Reduction Act actually increased inflation and the only thing it reduced was money in our pockets,” he said in his statement. “Cutting that off and restoring tax cuts and eliminating the tax increases would go a long way to having the kind of stimulative impact in our economy and controlling spending.”

    • Scott called for stronger economic growth. “We have to also grow our economy somewhere near 5% consistently,” he said, adding that could create 10 million jobs. The U.S. economy grew by nearly 6% in 2021 after contracting in 2020 as COVID hit, then it expanded by about 2% in 2022.

    Related: Republican presidential candidate Tim Scott says he wants to put the focus on tax cuts

    Asa Hutchinson

    Former Arkansas Gov. Asa Hutchinson blames “excessive federal spending” for leading to inflation when giving speeches, and outlines a plan for “fiscal responsibility” on his campaign site.

    Asa Hutchinson, governor of Arkansas from 2015 until this year, speaks at an Iowa event in April.


    Scott Olson/Getty Images

    • “Restore discipline by reducing federal government size, cutting spending, balancing the budget, and lowering the deficit to tame inflation,” it states.

    • When Hutchinson was governor, he signed a $500 million tax-cut package, saying “it could not come at a better time with the continued challenge of high food and gas prices.” That was in August 2022. On his campaign website, he repeats a call to cut taxes and “reduce regulations to boost the private sector and enhance wages for American workers.”

    Hutchinson’s campaign did not respond to a request for comment from MarketWatch.  

    Doug Burgum

    North Dakota Gov. Doug Burgum, a GOP presidential hopeful, speaks at the Iowa State Fair in August.


    Brandon Bell/Getty Images

    North Dakota Gov. Doug Burgum’s website says that as president he would “get inflation under control, cut taxes, lower gas prices
    RB00,
    +0.31%
    ,
    reduce the cost of living and help people realize their fullest potential.” It doesn’t provide specifics.

    A spokesman for Burgum’s White House campaign didn’t respond to MarketWatch’s requests for comment. A spokesman reportedly told the New York Times that the campaign will roll out its vision and plans on its own timeline.

    Larry Elder

    Larry Elder, a conservative radio host and a gubernatorial candidate in California in the failed 2021 recall of Democratic incumbent Gavin Newsom, said he views energy and tax policy and a constitutional amendment as ways to whip inflation.

    Larry Elder is a conservative radio host and former gubernatorial candidate in California.


    AP

    • “Reverse the war on oil
      CL00,
      +0.93%

      and gas
      NG00,
      -2.65%

      ; permit drilling in Anwar [Arctic National Wildlife Refuge]; authorize the Keystone Pipeline; reverse the Biden restrictions on drilling on federal lands; and encourage nuclear energy
      NLR,
      ” Elder said in a statement.

    • “Encourage an amendment to the Constitution to set spending to a fixed percent of the GDP,” he also said.

    • Elder said the reduction in spending forced by that constitutional amendment would “coincide with a steep reduction in personal and corporate income taxes,” offering further help to Americans with stretched budgets.

    Will Hurd

    2024 Republican presidential hopeful Will Hurd, a former Texas congressman, speaks in Iowa in July.


    AFP via Getty Images

    Former U.S. Rep. Will Hurd of Texas announced his candidacy in June but so far hasn’t made it to the debate stage. In his campaign-launch video, he labeled inflation “still out of control.”

    • In a post on X in June, Hurd called for reining in spending. “You cannot be putting government funds into, at a time where you’re seeing the rising inflation,” he said.

    • And he said tax hikes are a nonstarter when inflation is high. “The worst time to talk about increasing taxes is when everybody’s hurting from inflation.”

    • Hurd also said the deficit should be addressed, to “start bending the curve back on the debt.”

    Hurd’s campaign did not respond to a request for comment from MarketWatch.

    Now read: Republican presidential debate: Candidates could win with a clear economic message about the ‘crisis among working people’

    And see: As Biden joins UAW picket line, poll shows Democrats’ edge over GOP on ‘caring about people like me’ has vanished

    Jeffry Bartash contributed.

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  • Risk of government shutdown soars as House Republicans leave town in disarray amid hard-right revolt

    Risk of government shutdown soars as House Republicans leave town in disarray amid hard-right revolt

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    WASHINGTON — With House Speaker Kevin McCarthy’s latest funding plan in ruins and lawmakers leaving town for the weekend, there’s no endgame in sight as hard-right Republicans push closer to a federal government shutdown.

    The White House will tell federal agencies on Friday to prepare for a shutdown, according to an official with the Office of Management and Budget who insisted on anonymity to discuss the upcoming instructions.

    That’s a standard seven days out from a federal disruption.

    ‘This is a whole new concept of individuals who just want to burn the whole place down.’


    — Kevin McCarthy on his intraparty Republican critics

    McCarthy, the Republican speaker whose narrow majority and intraparty detractors meant it took 15 votes in January before he secured the gavel, has repeatedly tried to appease his hard-right flank by agreeing to the steep spending cuts they are demanding to keep government open. But, cheered on by Donald Trump, the former Republican president who is the current frontrunner for the party’s 2024 presidential nomination, the right wingers are flexing their outsize influence.

    In a crushing defeat for McCarthy on Thursday, a handful of Republican hardliners blocked a typically popular defense bill from advancing — the second time this week it was set back, an unheard-of loss for a House speaker.

    Even a stopgap bill to keep government funding past the Sept. 30 deadline, called a continuing resolution, or CR, is a nonstarter for some on the right flank who have essentially seized control of the House.

    Read on: How a partial government shutdown would affect you

    “This is a whole new concept of individuals who just want to burn the whole place down,” McCarthy said after Thursday’s vote, acknowledging he was frustrated. “It doesn’t work.”

    The open revolt was further evidence that McCarthy’s strategy of repeatedly giving in to the conservatives — in evidence as early as January when McCarthy is believed to have made undisclosed concessions to secure holdout GOP votes for his long-desired speakership — is seemingly only emboldening them, allowing them to run roughshod over their own House majority. Their far-right bills have almost no chances in the Senate.

    See: Gaetz threatens to oust McCarthy from House speaker post

    Trump urged the hardliners to hold the line against the higher funding levels McCarthy had agreed to with President Joe Biden earlier this year and to end the federal criminal indictments against him.

    “This is also the last chance to defund these political prosecutions against me and other Patriots,” Trump wrote on social media.

    “They failed on the debt limit, but they must not fail now. Use the power of the purse and defend the Country!” the former president wrote.

    The White House and Democrats, along with some Republicans, warn that a shutdown would be devastating for people who rely on their government for everyday services and would undermine America’s standing in the world.

    Rep. Jamie Raskin, a Maryland Democrat, observed Friday on the MSNBC program “Morning Joe” that investigations into, and prosecutions of, Trump are funded by continuing, indefinite appropriations and thus would be unaffected by a federal government shutdown.

    Also see: Government shutdown: Analysts warn of ‘perhaps a long one lasting into the winter’

    Raskin went on to voice a hope that Republicans ultimately would honor the government-funding agreement McCarthy struck in May with the Biden White House — but conceded Democrats are aware operating in a bipartisan fashion could cost McCarthy the speakership.

    “We need the extreme MAGA Republicans to get their act together,” said House Democratic leader Hakeem Jeffries of New York, referring to Trump’s “Make America Great Again” slogan.

    “End the civil war,” Jeffries urged the Republicans. “Get your act together.”

    But one of Trump’s top allies, Rep. Matt Gaetz, a Florida Republican, who is leading the hard-right flank in the current skirmish, said the House Republicans now have almost no choices left but to spend the time it takes to pass each of the 12 spending bills needed to fund the government — typically a laborious process — even if it means going into a shutdown.

    Or they can join with Democrats to pass a CR, putting McCarthy at risk.

    What Gaetz said he, and several others, would not do is vote for a continuing resolution that fails to slash spending. “I’m giving a eulogy for the CR right now,” Gaetz told reporters after a late afternoon meeting Thursday at the Capitol.

    “I represent Florida’s First Congressional District, where, during the shutdown, tens of thousands of people will go without a paycheck, and so I know the impact of a shutdown,” Gaetz said. “So it may get worse before it gets better, and I have little to offer but blood, sweat, toil and tears, but that may be what it takes.”

    A government closure is increasingly likely as time runs out for Congress to act.

    McCarthy’s bid to move ahead with a traditionally popular defense funding bill as a first step toward keeping the government running was shattered, on a vote of 216-212. Five Republicans refused to vote with the increasingly endangered speaker. A sixth Republican voted no on procedural grounds so the bill could be reconsidered.

    Moving forward with the defense bill was supposed to be a way for McCarthy to build goodwill among the GOP House majority as he tries to pass a temporary measure just to keep government running for another month. It, too, had catered to other hard-right priorities, such as slashing spending by 8% from many services and earmarking further funds for security at the U.S.-Mexico border.

    Many on the right flank opposed the deal McCarthy struck with Biden this year over the spending levels and are trying to dismantle it now. They want to see progress on the individual appropriations bills that would fund the various federal departments at the lower levels these lawmakers are demanding.

    From the archives (May 2023): How Joe Biden and Kevin McCarthy got to yes on their debt-ceiling compromise

    The morning test vote on Thursday shattered a McCarthy strategy that had emerged just the night before. Republicans had appeared on track, in a tight roll call, to advancing the measure. Then the Democrats who had not yet voted began rushing into the chamber.

    New York Rep. Alexandria Ocasio-Cortez and fellow Democrats yelled out to hold open the vote. She was a “no.” A few others came in behind her and tipped the tally toward defeat.

    The Democrats oppose the military bill on many fronts, including Republican provisions that would gut diversity programs at the Pentagon.

    As passage appeared doomed, attention turned to the five Republican holdouts to switch their votes.

    GOP leaders spent more than an hour on the floor trying to recruit one of them, Rep. Dan Bishop of North Carolina, to vote “yes.”

    “Every time there’s the slightest relief of the pressure, the movement goes away from completing the work,” Bishop said.

    When asked what it would take to gain his vote, Bishop said, “I think a schedule of appropriations bills over Kevin McCarthy signature would be meaningful to you, to me.”

    Others were dug in, including some who had supported advancing the defense bill just two days ago when it first failed.

    Rep. Marjorie Taylor Greene, a Georgia Republican and a clamorous opponent of more aid for Ukraine in its defense against the unprovoked Russian invasion, said she voted against the defense bill this time because her party’s leadership refused to separate out war money.

    Her stand came as Ukraine’s president, Volodymyr Zelensky, was at the Capitol during a high-profile visit to Washington.

    McCarthy had pledged to keep House lawmakers in session this weekend for as long as it took to finish their work. But they were sent home and told they could be called back on ample notice.

    Many Republicans were starting to speak up more forcefully against their hard-right colleagues.

    Mike Lawler, who represents a swing district in New York carried handily by Joe Biden in 2020, said he would not “be party to a shutdown.”

    “There needs to be a realization that you’re not going to get everything you want,” he said. “Just throwing a temper tantrum and stomping your feet — frankly, not only is it wrong — it’s just pathetic.”

    Lawler had said in an interview with CNN earlier in the week that barreling toward a shutdown was not Republican conservatism but “stupidity.”

    MarketWatch contributed.

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  • A 96-year-old federal judge is fighting to keep her job

    A 96-year-old federal judge is fighting to keep her job

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    As Americans debate whether President Joe Biden, at 80, is too old to run for a second term, here comes the story of a 96-year-old federal appeals court judge fighting to keep her job.

    Pauline Newman, a judge based in Washington, D.C., was suspended from her job earlier this week under an order from the Judicial Council of the Federal Circuit.

    The order praised Newman for serving “with distinction” over her nearly 40-year tenure and for being “a highly valued and respected colleague,” especially in regards to her work relating to the U.S. patent system. But it also pointed to “evidence of memory loss, confusion, and lack of comprehension” in the judge’s work.

    “Unfortunately, earlier this year mounting evidence raised increasing doubts about whether Judge Newman is still fit to perform the duties of her office,” the order said.

    Newman, who was appointed to the job in 1984 by President Ronald Reagan, has refused “multiple requests to discuss the matter,” according to the order. It was also noted that the judge “was responsible for extensive delays in resolving cases and appeared unable to complete her opinions in a timely fashion” despite a reduced workload.

    According to ABC News, Newman has “pushed back against allegations” and has said that she wants to resolve the matter in a cooperative way. ABC News also reported that Newman’s attorney, Greg Dolin, plans to fight the issue and will file a petition for review with the Committee on Judicial Conduct and Disability.

    MarketWatch reached out to Dolin for comment but didn’t receive an immediate response.

    Newman is not the oldest person to have served as a federal judge. That honor goes to Wesley E. Brown, who was still on the bench a month before his death in 2012 at the age of 104.

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  • Sen. Menendez of New Jersey and wife indicted on bribery charges as probe finds $100,000 in gold bars, prosecutors say

    Sen. Menendez of New Jersey and wife indicted on bribery charges as probe finds $100,000 in gold bars, prosecutors say

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    U.S. Sen. Bob Menendez of New Jersey and his wife were indicted Friday on bribery charges after an investigation that turned up $100,000 in gold bars and $480,000 in hidden cash at their home, prosecutors said.

    Federal prosecutors announced the charges against the 69-year-old Democrat nearly six years after an earlier criminal case against him ended with a deadlocked jury. They said a search of Bob Menendez’s home turned up $100,000 in gold bars and $480,000 in hidden cash.

    The latest indictment is unrelated to the earlier charges that alleged Menendez accepted lavish gifts to pressure government officials on behalf of a Florida doctor.

    The Senate Historical Office says Menendez appears to be the first sitting senator in U.S. history to have been indicted on two unrelated criminal allegations.

    A lawyer for Menendez’s wife hasn’t responded to a message seeking comment. Messages were left for Menendez’s Senate spokesperson and his political consultant.

    The first time Menendez was indicted, he had been accused of using his political influence to help a Florida eye doctor who had lavished him with gifts and campaign contributions.

    The new charges follow a years-long investigation that examined, among other things, the dealings of a New Jersey businessman — a friend of Menendez’s wife — who secured sole authorization from the Egyptian government to certify that meat imported into that country meets Islamic dietary requirements.

    Investigators also asked questions about the Menendez family’s interactions with a New Jersey developer.

    Menendez’s political career had looked as though it might be over in 2015, when a federal grand jury in New Jersey indicted him on multiple charges over favors he did for a friend, Dr. Salomon Melgen.

    Menendez was accused of pressuring government officials to resolve a Medicare billing dispute in Melgen’s favor, securing visas for the doctor’s girlfriends and helping protect a contract the doctor had to provide port-screening equipment to the Dominican Republic.

    Menendez has always maintained his innocence. His lawyers said campaign contributions and gifts from Melgen — which included trips on his private jet to a resort in the Dominican Republic and a vacation in Paris — were tokens of their longtime friendship, not bribes.

    Prosecutors dropped the case after a jury deadlocked in November 2017 on charges including bribery, fraud and conspiracy, and a judge dismissed some counts.

    The Senate Ethics Committee later rebuked Menendez, finding that he had improperly accepted gifts, failed to disclose them and then used his influence to advance Melgen’s personal interests.

    But months later, New Jersey voters returned Menendez to the Senate. He defeated a well-financed challenger in a midterm election that broke a Republican lock on power in Washington.

    Melgen was convicted of health care fraud in 2017 but former President Donald Trump commuted his prison sentence.

    Menendez is widely expected to run for reelection next year.

    The son of Cuban immigrants, Menendez has held public office continuously since 1986, when he was elected mayor of Union City, New Jersey. He was a state legislator and spent 14 years in the U.S. House of Representatives. In 2006, Gov. Jon Corzine appointed Menendez to the Senate seat he vacated when he became governor.

    At least two other senators — Kay Bailey Hutchinson, R-Texas; Richard Kenney, D-Delaware — were indicted on multiple occasions while still in office, but each senator’s indictments covered overlapping allegations, according to the Senate Historical Office.

    Neither Kenney nor Hutchinson were ultimately convicted, and both went on to serve their full terms. In total, 13 senators have been indicted throughout history, of which six have been convicted, according to the Senate Historical Office. Two of those convictions were overturned.

    Menendez first publicly disclosed that he was the subject of a new federal investigation last October.

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  • Chris Christie fires back at Donald Trump as the Republican race heats up in New Hampshire

    Chris Christie fires back at Donald Trump as the Republican race heats up in New Hampshire

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    ‘Keep it coming, Donald.’

    That’s Republican presidential candidate and former New Jersey Gov. Chris Christie responding to recent attacks against him by former President Donald Trump, the leading Republican contender in the 2024 race.

    In an interview with CNN’s Wolf Blitzer on Thursday, Christie faulted Trump for not agreeing to appear at the Republican presidential debates, where Christie said Trump would have the opportunity to confront his fellow candidates in person.

    “If he had any guts, he’d get on the debate stage,” Christie said, adding that the former president was hiding behind his “failed” Truth Social site.

    In a series of Truth Social posts that went up late Wednesday, Trump accused Christie of being a “grifter” and pointed to issues with his tenure as New Jersey governor, noting Christie’s low approval rating at the end of his two terms. Trump’s posts also included the now-infamous pictures of Christie sitting at a New Jersey beach in 2017 during a time when such spaces were closed due to the state’s government shutdown.

    Christie has generally trailed in the 2024 presidential polling, but has been making a strong effort to establish himself in New Hampshire, a key early state.

    According to a recent CNN/University of New Hampshire poll, Trump still leads in the state by a wide margin (39%), but Christie (11%) is essentially in a four-way tie with tech entrepreneur Vivek Ramaswamy (13%), former South Carolina Gov. Nikki Haley (12%) and Florida Gov. Ron DeSantis (10%) for second place. DeSantis had been considered Trump’s closest rival in the state, but he’s seen his poll numbers drop considerably of late.

    Christie said on CNN that his rise in New Hampshire has likely prompted Trump’s recent accusations.

    “He has stopped attacking Ron DeSantis and he started attacking me,” Christie said.

    Christie also jokingly questioned if Trump’s late-Wednesday Truth Social posts were a result of indigestion.

    “Maybe he had some bad Chinese food or something,” Christie said.

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  • ‘Our job is not to take orders from the president, from Congress, or from anyone else’: Atty. Gen. Garland rips House Republican scolds

    ‘Our job is not to take orders from the president, from Congress, or from anyone else’: Atty. Gen. Garland rips House Republican scolds

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    WASHINGTON (AP) — Attorney General Merrick Garland on Wednesday is set to come face-to-face with his most ardent critics as House Republicans prepare to use a routine oversight hearing to interrogate him about what they claim is the “weaponization” of the Justice Department under President Joe Biden.

    Garland is appearing before the House Judiciary Committee for the first time in two years and at an unprecedented moment in the Justice Department’s history: He’s overseeing two cases against Donald Trump, the first former president to face criminal charges, and another against the sitting president’s son, Hunter Biden.

    “Our job is not to take orders from the president, from Congress, or from anyone else, about who or what to criminally investigate,” Garland will say, according to prepared remarks.

    ‘I am not the President’s lawyer. I will also add that I am not Congress’s prosecutor. The Justice Department works for the American people.’


    — Attorney General Merrick Garland in prepared remarks

    Republicans on the committee were tight-lipped about what they planned to ask Garland, telling the Associated Press on Tuesday that they wanted to keep lines of attack under wraps until the hearing.

    But Garland will likely face tense and heated questions about the Trump and Hunter Biden criminal cases, forcing him to defend the country’s largest law enforcement agency at a time when political and physical threats against agents and their families are on the rise.

    Context: ‘He’s being squeezed’: McCarthy yields to right-flank insistence on Biden impeachment inquiry amid intensifying threat to speakership

    Also see: Kevin McCarthy’s near-impossible task: to get Republicans on the same page and fund the government for another month

    “All of us at the Justice Department recognize that with this work comes public scrutiny, criticism, and legitimate oversight. These are appropriate and important given the gravity of the matters before the department,” Garland will say, according to his prepared remarks. “But singling out individual career public servants who are just doing their jobs is dangerous — particularly at a time of increased threats to the safety of public servants and their families.”

    Democrats say they plan to “act as kind of a truth squad” against what they see as Republican misinformation and their ongoing defense of Trump, who is now the Republican frontrunner to challenge Biden in next year’s election. They say Republicans are trying to detract attention from the indicted former president’s legal challenges and turn a negative spotlight on Biden.

    “I’ll be using this opportunity to highlight just how destructive that is of our system of justice and how once again, it is the GOP willing to undermine our institutions in the defense of their indefensible candidate for president,” Rep. Adam Schiff, a senior Democrat on the committee, told the AP.

    Garland’s testimony also comes just over a week after Speaker Kevin McCarthy, a Republican from inland south-central California, launched an impeachment inquiry into his boss, Biden, with a special focus on the Justice Department’s handling of Hunter Biden’s years-long case.

    The White House has dismissed the impeachment inquiry as baseless and worked to focus the conversation on policy instead. Hunter Biden’s legal team, on the other hand, has gone on the offensive against GOP critics, most recently filing suit against the Internal Revenue Service after two of its agents raised whistleblower claims to Congress about the handling of the investigation.

    Republicans contend that the Justice Department — both under Trump and now Biden — has failed to fully probe the allegations against the younger Biden, ranging from his work on the board of Ukrainian energy company Burisma to his tax filings in California and Washington, D.C.

    “I am not the President’s lawyer. I will also add that I am not Congress’s prosecutor. The Justice Department works for the American people,” Garland is expected to say.

    Democrats have said they plan to ‘act as kind of a truth squad’ at the House hearing.

    An investigation into Hunter Biden had been run by the U.S. attorney for Delaware, Trump appointee David Weiss, who Garland had kept on to finish the probe and insulate it from claims of political interference. Garland granted Weiss special counsel status last month, giving him broad authority to investigate and report his findings. He oversees the day-to-day running of the probe and another special counsel, Jack Smith, is in charge of the Trump investigation, though Garland retains final say on both as attorney general.

    Last week, Weiss used that new authority to indict Hunter Biden on federal firearms charges, putting the case on track toward a possible trial as the 2024 election looms.

    The Republican chairmen of the Oversight, Judiciary, and Ways and Means committees launched an investigation into Weiss’ handling of the case, which was first opened in 2018 after two IRS agents claimed in congressional testimony in May that the Justice Department improperly interfered with their work.

    Gary Shapley, a veteran IRS agent assigned to the case, testified to Congress that Weiss indicated in October 2022 that he was not the “deciding person whether charges are filed” against Hunter Biden.

    That testimony has been disputed by two FBI agents who were also in the room for that meeting.

    Hunter Biden has since sued the IRS, alleging that the episode has breached his right to privacy.

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  • Republican Texas AG Ken Paxton is acquitted of all 16 corruption charges at impeachment trial

    Republican Texas AG Ken Paxton is acquitted of all 16 corruption charges at impeachment trial

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    Texas Attorney General Ken Paxton was acquitted Saturday of all charges at a historic impeachment trial that divided Republicans over whether to remove a powerful defender of former President Donald Trump after years of scandal and criminal charges.

    The verdict reaffirmed Paxton’s durability in America’s biggest red state and is a broader victory for Texas’ hard right after an extraordinary trial that put on display fractures within the GOP nationally heading into the 2024 elections. In the end, Paxton was fully cleared by Senate Republicans, who serve alongside his wife, state Sen. Angela Paxton.

    Angela Paxton was not allowed to vote. But she attended all two weeks of the trial, including the reading of the verdict, when all but two of her fellow 18 Republican senators consistently voted to acquit her husband on 16 impeachment articles that accused him of misconduct, bribery and corruption. Ken Paxton, who was absent for most of the proceedings, did not attend the verdict.

    It clears the way for Paxton to reclaim his role as Texas’ top lawyer, more than three months after his stunning impeachment in the Texas House forced him to temporarily step aside.

    The outcome far from ends Paxton’s troubles. He still faces trial on felony securities fraud charges, remains under a separate FBI investigation and is in jeopardy of losing his ability to practice law in Texas because of his baseless attempts to overturn the 2020 election.

    The jury of 30 senators spent about eight hours deliberating behind closed doors before emerging for the historic vote. A two-thirds majority is required to convict Paxton on any of the charges that accuse Paxton of bribery, corruption and unfitness for office.

    The trial has plunged Texas Republicans into unfamiliar waters as they confronted whether Paxton should be removed over allegations that he abused his office to protect a political donor who was under FBI investigation.

    For nearly a decade, Paxton has elevated his national profile by rushing his office into polarizing courtroom battles across the U.S., winning acclaim from Donald Trump and the GOP’s hard right.

    The case centered on accusations that Paxton misused his office to help one of his donors, Austin real estate developer Nate Paul, who was indicted in June on charges of making false statements to banks. Paul has pleaded not guilty.

    Eight of Paxton’s former deputies reported him to the FBI in 2020, setting off a federal investigation that will continue regardless of the verdict. Federal prosecutors investigating Paxton took testimony in August before a grand jury in San Antonio , according to two people with knowledge of the matter who spoke on condition of anonymity because of secrecy rules around the proceeding.

    One of the impeachment articles centered on an alleged extramarital affair Paxton had with Laura Olson, who worked for Paul. It allegeed that Paul’s hiring of Olson amounted to a bribe.

    Paxton faces an array of legal troubles beyond the impeachment. Besides the federal investigation for the same allegations that gave rise to his impeachment, he also faces a bar disciplinary proceeding over his effort to overturn the 2020 election and has yet to stand trial on state securities fraud charges dating to 2015. He pleaded not guilty in the state case, but his lawyers have said removal from office might open the door to a plea agreement.

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  • UAW strike: Ford, GM, Stellantis record profits haven’t been shared fairly with workers, Biden says

    UAW strike: Ford, GM, Stellantis record profits haven’t been shared fairly with workers, Biden says

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    President Joe Biden on Friday offered his support to the United Auto Workers, as he addressed their strike aimed at the Big Three auto makers.

    Auto companies have seen record profits because of the “extraordinary skill and sacrifices” of UAW workers, Biden said in a brief speech at the White House.

    “Those record profits have not been shared fairly, in my view, with those workers,” the president added.

    “The companies have made some significant offers, but I believe they should go further to ensure record corporate profits mean record contracts for the UAW,” he also said.

    Biden gave his remarks after about 12,700 workers went on strike early Friday as their union and the Big Three automakers failed to reach an agreement before a contract expired.

    It’s a targeted strike at a Ford Motor 
    F,
    -0.08%

    plant in Michigan, a General Motors 
    GM,
    +0.86%

    plant in Missouri and a Stellantis NV 
    STLA,
    +2.18%

    plant in Ohio.

    The UAW so far has not endorsed Biden’s re-election bid, even as the AFL-CIO and other big unions have lined up behind the Democratic incumbent.

    The presidential race in 2024 could be a rematch of 2020’s contest between Biden and former President Donald Trump, who has won over some union households that historically have backed Democrats like Biden rather than Republicans.

    See: Here are the Republicans running for president

    Biden got more support than Trump from union households in the battleground states of Michigan and Wisconsin in 2020, but Trump got more support from such households in Ohio and Pennsylvania, according to Edison Research exit polls.

    Trump has seized on concerns that the car industry’s shift toward electric vehicles
    CARZ,
    which the Biden administration has promoted, could hurt American workers. “The all Electric Car is a disaster for both the United Auto Workers and the American Consumer,” the former president said Friday in a post on his Truth Social platform.

    On Friday, Biden said he hopes the UAW and car companies “can return to the negotiation table to forge a win-win agreement,” and he said he’s sending two administration officials to Detroit — Julie Su, the acting secretary of labor, and Gene Sperling, a senior adviser.

    GM posted a 2022 net profit of $11.04 billion, up from $10.38 billion in 2021, while Ford recorded a 2022 net profit of $7.62 billion, up from $6.43 billion in the prior year. For Stellantis, the parent company for brands such as Chrysler, Dodge and Jeep, last year’s net profit was $17.83 billion, up from $15.12 billion.

    UAW President Shawn Fain said in a statement after Biden’s speech that union members “agree with Joe Biden when he says ‘record profits mean record contracts.’” 

    Fain also said: “Working people are not afraid. You know who’s afraid? The corporate media is afraid. The White House is afraid. The companies are afraid.”

    Now read: Tesla may be the winner of the Big Three labor woes

    And see: Will the UAW strike push up car prices?

    Plus: UAW strike to have limited impact on Big Three, Fitch says

    Claudia Assis contributed.

     

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  • House Speaker McCarthy announces impeachment inquiry into President Biden

    House Speaker McCarthy announces impeachment inquiry into President Biden

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    House Speaker Kevin McCarthy on Tuesday announced an impeachment inquiry into President Joe Biden, saying that House Republicans have in recent months uncovered credible allegations about his conduct.

    “Today I am directing our House committees to open a formal impeachment inquiry into President Joe Biden,” McCarthy told reporters on Capitol Hill. He said the move would give the panels “the full power to gather all the facts and answers for the American people.”

    Punchbowl News reported earlier that the California Republican was poised to tell House Republicans this week that launching an impeachment inquiry into Biden is the “logical next step” in the GOP’s probes of the president and his son Hunter.

    House Republicans are probing the business dealings of Hunter Biden but so far have not produced evidence linking him to the president.

    Ian Sams, a White House spokesman, said in a message on X that Republicans “have turned up no evidence of wrongdoing” by President Biden and noted that McCarthy had previously called for a House vote before opening an inquiry.

    “Extreme politics at its worst,” wrote Sams.  

    In July, McCarthy said that GOP probes of the Bidens were “rising to the level of impeachment inquiry.”

    With Congress staring down a Sept. 30 deadline to fund the government or risk a partial shutdown, McCarthy has been feeling some heat from his right flank. Rep. Matt Gaetz, a Florida Republican who is critical of McCarthy, was planning to deliver a speech Tuesday intended to lay groundwork for a potential move to oust him as speaker, according to the New York Times.

    McCarthy’s announcement comes as the 2024 White House campaign is heating up. Speaking on MSNBC, Rep. Debbie Wasserman Schultz, a Florida Democrat, called House Republicans an arm of former President Donald Trump’s 2024 election campaign.

    “They are succumbing to the pressure from Donald Trump and from their right-wing MAGA base,” she said.

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  • Pelosi says she’ll seek re-election to House seat in 2024

    Pelosi says she’ll seek re-election to House seat in 2024

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    WASHINGTON (AP) — Former House Speaker Nancy Pelosi said Friday she will run for reelection to another term in Congress as Democrats work to win back the majority in 2024.

    Pelosi, 83, made the announcement before labor allies in the San Francisco area district she has represented for more than 35 years.

    From the archives (November 2022): House Democratic caucus confers ‘speaker emerita’ title on Pelosi as Jeffries takes up party leadership reins

    Also see (November 2022): Nancy Pelosi steps down as leader of House Democrats after two decades

    “Now more than ever our City needs us to advance San Francisco values and further our recovery,” Pelosi said in a tweet. “Our country needs America to show the world that our flag is still there, with liberty and justice for ALL. That is why I am running for reelection — and respectfully ask for your vote.”

    First elected to Congress in 1987, the Democratic leader made history becoming the first female speaker in 2007, and in 2019 she regained the speaker’s gavel.

    Pelosi led the party through substantial legislative achievements, including passage of the Affordable Care Act, as well as turbulent times with two impeachments of former President Donald Trump.

    The announcement quells any talk of retirement for the long-serving leader who, with the honorific title of speaker emeritus, remains an influential leader, pivotal party figure and vast fundraiser for Democrats.

    Read on:

    Nancy Pelosi: Love or hate her, her senior work ethic is admirable

    Nancy Pelosi portrait unveiling at Capitol reduces John Boehner to tears

    State of the Union guests include Bono, Paul Pelosi and Tyre Nichols’s parents

    Paul Pelosi ‘violently assaulted’ after break-in at home, full recovery expected, Nancy Pelosi’s office says

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  • Biden surveys hurricane’s toll from the sky and on the ground in Florida. DeSantis opts out of meeting.

    Biden surveys hurricane’s toll from the sky and on the ground in Florida. DeSantis opts out of meeting.

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    President Joe Biden got a look Saturday from the sky at Hurricane Idalia’s impact across a swath of Florida before setting out on a walking tour of a city recovering from the storm.

    Notably absent from his schedule was any time with Gov. Ron DeSantis, a Republican presidential candidate who suggested a meeting could hinder disaster-response efforts.

    “Our teams worked collectively to find this area. This was a mutually agreed upon area because of the limited impact,” Deanne Criswell, the head of the Federal Emergency Management Agency, told reporters as the president flew from Washington. She said her teams “have heard no concerns over any impact to the communities that we’re going to visit today.”

    On Friday, hours after President Biden indicated he would be meeting with Gov. DeSantis, the Republican’s office issued a statement saying there were no plans for such a get-together.

    Air Force One landed at the airport in Gainesville, where the president and first lady Jill Biden boarded Marine One for a helicopter flight to Live Oak, about 80 miles east of Tallahassee, the capital. He awaited a briefing on response and recovery efforts and a session with federal and local officials and first responders before his walk.

    On Friday, hours after Biden said he would be meeting with DeSantis, the governor’s office issued a statement saying there were no plans for such a get-together.

    “In these rural communities, and so soon after impact, the security preparations alone that would go into setting up such a meeting would shut down ongoing recovery efforts,” DeSantis spokesman Jeremy Redfern said in a statement.

    Criswell said aboard the flight that power is being restored and the road are all open in the area where Biden was going. “Access is not being hindered,” she said, adding that her team had been in “close coordination” with the governor’s staff.

    Idalia made landfall Wednesday morning along Florida’s sparsely populated Big Bend region as a Category 3 storm, causing widespread flooding and damage before moving north to drench Georgia and the Carolinas.

    As Biden left Washington on Saturday morning, he was asked by reporters what happened with that meeting. “I don’t know. He’s not going to be there,” the president said. He later said the federal government would “take care of Florida.”

    Previously: Idalia: Biden tells DeSantis Florida will have ‘full support’

    Gov. Ron DeSantis looks on in 2021 as President Joe Biden speaks during a Miami Beach briefing on the partial condominium collapse in Surfside, Fla.


    AP/Susan Walsh

    The political disconnect between both sides is a break from the recent past, since Biden and DeSantis met when the president toured Florida after Hurricane Ian hit the state last year, and following the Surfside condo collapse in Miami Beach in summer 2021. But DeSantis is now running to unseat Biden, and he only left the Republican presidential primary trail with Idalia barreling toward his state.

    Putting aside political rivalries following natural disasters can be tricky, meanwhile.

    Another 2024 presidential candidate, former Republican New Jersey Gov. Chris Christie, has long been widely criticized in GOP circles for embracing then-President Barack Obama during a tour of damage 2012’s Hurricane Sandy did to his state. Christie was even asked about the incident last month, during the first Republican presidential debate.

    Both Biden and DeSantis at first suggested that helping storm victims would outweigh partisan differences. But the governor began suggesting that a presidential trip would complicate response logistics as the week wore on.

    “There’s a time and a place to have political season,” the governor said before Idalia made landfall. “But then there’s a time and a place to say that this is something that’s life threatening, this is something that could potentially cost somebody their life, it could cost them their livelihood.”

    By Friday, the governor was telling reporters of Biden, “one thing I did mention to him on the phone” was “it would be very disruptive to have the whole security apparatus that goes” with the president “because there are only so many ways to get into” many of the hardest hit areas.

    “What we want to do is make sure that the power restoration continues and the relief efforts continue and we don’t have any interruption in that,” DeSantis said.

    Biden joked while delivering pizzas to workers at FEMA’s Washington headquarters on Thursday that he’d spoken to DeSantis so frequently about Idalia that “there should be a direct dial” between the pair.

    Homeland Security adviser Liz Sherwood-Randall pointed to the experiences after Ian and Surfside collapse in saying earlier this week that Biden and DeSantis “are very collegial when we have the work to do together of helping Americans in need, citizens of Florida in need.”

    The post-Idalia political consequences are high for both men.

    As Biden seeks re-election, the White House has asked for an additional $4 billion to address natural disasters as part of its supplemental funding request to Congress. That would bring the total to $16 billion and highlight that wildfires, flooding and hurricanes have intensified during a period of climate change, imposing ever higher costs on U.S. taxpayers.

    DeSantis has built his White House bid around dismantling what he calls Democrats’ “woke” policies. The governor also frequently draws applause at GOP rallies by declaring that it’s time to send “Joe Biden back to his basement,” a reference to the Democrat’s Delaware home, where he spent much of his time during the early lockdowns of the coronavirus pandemic.

    From the archives (January 2022): Critics accuse DeSantis of base pandering as he pushes bill to shield white people in Florida from ‘discomfort’ at school or in job training

    Also see (May 2023): Florida school library limits access to Amanda Gorman’s poem for Biden inauguration after parent complaint

    But four months before the first ballots are to be cast in Iowa’s caucuses, DeSantis still lags far behind former President Donald Trump, the Republican primary’s dominant early frontrunner. And he has cycled through repeated campaign leadership shakeups and reboots of his image in an attempt to refocus his message.

    The super PAC supporting DeSantis’s candidacy also has halted its door-knocking operations in Nevada, which votes third on the Republican presidential primary calendar, and several states holding Super Tuesday primaries in March — a further sign of trouble.

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  • Congress returns to face shutdown fears — here’s what it means for markets

    Congress returns to face shutdown fears — here’s what it means for markets

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    U.S. lawmakers are due to get back to work Tuesday on Capitol Hill, and there are growing expectations that one fruit of their labors will be a partial government shutdown.

    “My guess is that we will have a lot of screaming and shouting, and we’ll end up shutting down the government, and a lot of people will be inconvenienced or hurt as a result of doing that, but we’ll do it,” said Republican Sen. Mitt Romney of Utah in an interview with a TV station in his home state.

    “And by the way, we’ll shut down government, and then we’ll open it. It’s not like that means that we win. No, no. We just shut it down to show that we’re fighting and making noise.”

    Investors should view the shutdown as largely noise, according to a number of analysts in Washington, D.C., who track lawmakers’ moves for Wall Street.

    “The stakes here are significantly lower than they were back in June, when we were facing default,” said Ed Mills, Washington policy analyst for Raymond James, referring to lawmakers’ efforts to reach a deal on raising the U.S. debt ceiling in order to avoid a market-shaking default.

    “For the most part, this is a 1 or 2 on a scale of 1 to 10 in terms of concern,” Mills told MarketWatch, adding that a U.S. default, on the other hand, would have registered as a 10 on that scale.

    There have been six government shutdowns since 1978 that lasted five days or more, and the S&P 500 stock index
    SPX
    gained in the four most recent shutdowns. Brian Gardner, chief Washington policy strategist at Stifel, emphasized that history in a note to clients.

    “Headlines regarding a potential budget impasse will grow and there could be a whiff of panic in the air, but investors should take all of this in stride. Markets tend to ignore the impact of a government shutdown,” Gardner wrote, as he offered the chart shown below.

    There have been six shutdowns since 1978 that lasted five days or more. Here’s how stocks handled them.


    Stifel

    From MarketWatch’s archives (September 2021): Here’s how the stock market has performed in past government shutdowns

    And from January 2019: The latest government shutdown is ending, after becoming the longest on record — by a wide margin

    How government shutdowns can hurt

    Stifel’s Gardner said that while past shutdowns suggest that investors should not panic, there still is some damage.

    “There will be extensive media coverage of closed entrances at national parks and other government facilities.  Government salaries will not be paid on time which is, certainly, a hardship for some families,” he wrote. At the same time, he emphasized that “much of the country will operate as usual,” including the military
    ITA
    and air traffic controllers — and missed paychecks will come through once the shutdown ends.

    From MarketWatch’s archives (January 2019): How furloughed federal workers can rebuild their finances after the shutdown

    “From a market perspective, the biggest concern relating to a government shutdown is that it could delay official government data reports at a pivotal time for the Federal Reserve,” said BTIG’s Issac Boltansky and Isabel Bandoroff in a note.

    Related: Jackson Hole recap: Fed rate hikes likely on hold for ‘several meetings’

    The BTIG analysts said they expect a shutdown will occur but it should be a “nonevent for markets” overall, because it “would have no impact on debt payments and any missed activity would be settled on the other side of reopening.”

    There could be a greater-than-anticipated impact on stocks
    DJIA

    COMP
    if the shutdown lasts for a longer time than expected, and if the deal to end the shutdown features unexpectedly large cuts to spending along with significant repeals of Democrats’ Inflation Reduction Act, according to Mills, the Raymond James analyst.

    “The most likely scenario is that it’s days, not weeks,” he said, regarding the length of any shutdown. He also noted it could hit consumer confidence and disrupt the initial-public-offering process for some companies.

    What’s likely to happen on Capitol Hill

    Only one chamber of Congress is returning to Washington on Tuesday, the day following Labor Day, after an August recess — the Senate. The House of Representatives is slated to resume its work on Capitol Hill a week later, on Sept. 12.

    Ahead of their returns, the Biden White House’s budget office has pushed for passage of a short-term funding measure to avoid a partial federal government shutdown on Oct. 1, when the government’s 2024 fiscal year starts.

    Such a measure is known as a continuing resolution, or CR, and they’re often used as the House and Senate work to agree on a dozen appropriations bills that would fund government operations for a full fiscal year.

    The debt-ceiling deal negotiated between House Speaker Kevin McCarthy and President Joe Biden set spending levels over the next two years, keeping nonmilitary spending for 2024 the same as 2023 levels. But House Republicans have adopted spending targets for the coming fiscal year at levels below the McCarthy-Biden agreement.

    McCarthy has raised the idea of a short-term funding bill with his fellow Republicans.

    “The thing that Kevin McCarthy is trying to tell his caucus is that we probably need to have a short-term CR, so that the House can finish its work on appropriations bills and establish the best negotiating position,” Mills said.

    The House Freedom Caucus, a hardline GOP group known for causing headaches for the chamber’s leaders, has voiced concerns. It said in an Aug. 21 statement that its members want to rein in outlays and will oppose any spending measure that doesn’t include a House-passed bill focused on security at the U.S. southern border. In addition, the group said any spending measure must address the “unprecedented weaponization” of the Justice Department and the FBI, as well as end “woke policies in the Pentagon.”

    The most likely path forward is the GOP-run House passes a short-term funding measure that incorporates House Freedom Caucus goals, and then there’s a showdown with the Democratic-controlled Senate over those policy riders, with a short-lived shutdown potentially taking place, Mills said.

    The Raymond James analyst said the most likely deal is a budget that’s in line with what was negotiated as part of the debt-limit deal. He also expects supplemental measures that provide relief for areas hit by Hurricane Idalia and the Maui wildfires, as well as some funding for Ukraine as it continues its fight against Russia’s invasion.

    “For investors, they have seen McCarthy go up to the brink, go through a tough situation and be able to pull a rabbit out of it,” Mills said, referring to his January battle to become House speaker and the spring’s debt-limit talks. And they’ve “gone through government shutdowns in the past, mostly with very minimal market reaction,” he added.

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  • Private equity, hedge funds sue SEC over new disclosure rules

    Private equity, hedge funds sue SEC over new disclosure rules

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    A consortium of groups representing the private funds industry filed a lawsuit against the Securities and Exchange Commission Friday in an attempt to block new rules that would require private equity and hedge funds to disclose quarterly performance, fees and expenses.

    The rules, adopted last week, would also ban so-called side letters, or agreements between a fund and specific investors that give them preferential treatment, unless those arrangements are made available to all investors.

    Read more: SEC votes to require private equity and hedge funds to disclose performance and fees

    “The SEC has overstepped its statutory authority and core legislative mandate, leaving us no choice but to litigate,” said Bryan Corbett, president and CEO of the Managed Funds Association, one of the litigants in the suit.

    “The Private Fund Adviser rule will harm investors, fund managers, and markets by increasing costs, undermining competition, and reducing investment opportunities for pensions, foundations, and endowments,” he added.

    The MFA was joined by several other industry groups in filing the lawsuit, including  the National Association of Private Fund Managers, National Venture Capital Association, American Investment Council,  Alternative Investment Management Association and the Loan Syndications & Trading Association.

    An SEC spokesperson told MarketWatch that “the Commission undertakes rulemaking consistent with its authorities and laws governing the administrative process, and we will vigorously defend the challenged rule in court.”

    SEC Chair Gary Gensler argued in recent speeches and statements that the new rules are necessary to protect investors, including the pension funds and endowments that have increasingly turned to alternative investments in recent years to boost returns.

    He said in a May speech that private funds are of growing importance to the U.S. economy, noting that advisers report that they now manage $25 trillion in assets — up from $1 trillion in 1998 — surpassing the size of the U.S. banking sector.

    “The private fund industry plays an important role in each sector of the capital markets,” he said.

    “It also plays an important role for investors, such as retirement funds and endowments,” he added. “Standing behind those entities are a diverse array of teachers, firefighters, municipal workers, students, and professors.”

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  • Mitch McConnell appears to freeze again, in another health scare for Senate’s top Republican

    Mitch McConnell appears to freeze again, in another health scare for Senate’s top Republican

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    Senate Minority Leader Mitch McConnell froze for about 30 seconds Wednesday during an event with reporters in Kentucky, with the incident coming a month after a similar freeze-up.

    Footage in the social-media post below from a local TV station, WLWT, shows the 81-year-old Kentucky Republican freezing up after a question about seeking re-election.

    Additional video shows McConnell getting help from an aide with responding to other questions and then being led away.

    A spokesman for the 81-year-old Kentucky Republican said the senator “felt momentarily lightheaded and paused during his press conference today,” according to multiple published reports.

    “While he feels fine, as a prudential measure, the Leader will be consulting a physician prior to his next event,” his office also said.

    In a statement after last month’s incident, a spokesman said McConnell plans to serve the rest of the 118th Congress as the GOP leader, but the statement didn’t address his plans for the next Congress, which starts in January 2025.

    If McConnell leaves the post of Senate Republican leader, three GOP senators are viewed as in the running to succeed him: John Barrasso of Wyoming, John Cornyn of Texas and John Thune of South Dakota.

    McConnell’s current term as a U.S. senator runs through 2026, and Kentucky’s Democratic governor would be required to pick a Republican to replace him if he steps down early.

    A number of political figures have drawn attention this year due to their advanced age or health problems, including President Joe Biden, 80; Democratic Sen. Dianne Feinstein of California, 90; and Democratic Sen. John Fetterman of Pennsylvania, 54.

    Biden told reporters on Wednesday afternoon that he had heard about McConnell’s situation, and he planned to reach out to the senator, adding that they are friends even though they have disagreements politically.

    “I’m going to try to get in touch with him later this afternoon,” the president said.

    The Senate’s median age is 65.3 years old, up from 64.8 in the 117th Congress and 63.6 in the 116th, according to a Pew Research Center analysis from January.

    On Tuesday, House Majority Leader Steve Scalise, a Louisiana Republican, said he has been “diagnosed with Multiple Myeloma, a very treatable blood cancer.” Scalise, 57, said he has started treatment, which will continue for the next several months, and he expects to work while getting treated and intends to return to Washington, D.C.

    See: Biden’s age is figuring ‘prominently’ in the 2024 White House race — but here’s what the pundits could be getting wrong

    And read: Biden is reportedly using shorter stairs to sidestep ageism. Millions of other Americans face the same workplace problems.

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  • How the stock market’s performance under Biden is worse than under Obama or Trump — in one chart

    How the stock market’s performance under Biden is worse than under Obama or Trump — in one chart

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    U.S. stocks so far haven’t fared as well under President Joe Biden as they did in Donald Trump’s single term or in either of Barack Obama’s two terms.

    The research team at Wilshire Indexes is pointing that out this month with the chart below, which features the FT Wilshire 5000
    XX:W5000FLT,
    an index that aims to reflect the performance of the total U.S. stock market.

    U.S. stocks haven’t performed as well in Biden’s current term as they did under Obama or Trump.


    Wilshire Indexes

    Biden and his allies could be worried about how stocks
    SPX
    are doing, and it’s possible his administration will try to help the market somehow in 2024, according to Philip Lawlor, managing director of market research at Wilshire Indexes.

    “With the 2024 election in sight, the disparity in cumulative equity return generated so far under the Biden administration compared to the superior return trajectory delivered by the Trump and Obama presidencies could cause some concern,” Lawlor wrote. “Electoral cycle logic points to the Biden administration doing its utmost to ensure that the gap closes next year.”

    Biden officially launched his re-election campaign in April, and the Democratic incumbent and his cabinet officials have traveled around the U.S. in recent months to talk up their economic policies, including measures such as the Inflation Reduction Act

    When asked about the stock market’s struggles earlier this year, one White House official told MarketWatch that the administration wants to see “strong performance,” but he also noted that roughly half of Americans don’t hold stocks and highlighted other economic indicators.

    “The markets are going to go up and down. The main measure that the president has about the state of the economy is, how are middle-class families doing?” said Bharat Ramamurti, deputy director of the White House’s National Economic Council.

    “Do they have good-paying jobs that allow them to support themselves and their families? Are they seeing their wages go up? Do they feel like they have good opportunities to advance in their career, good opportunities to switch jobs and make more money? Or live in a better neighborhood, or whatever the case may be? By those metrics, we think that the economy is doing very, very well.”

    Republican presidential hopefuls made their economic pitches at a debate on Wednesday night in Milwaukee, with Florida Gov. Ron DeSantis, who is currently running second in GOP primary polls, saying the country “must reverse ‘Bidenomics’ so that middle-class families have a chance to succeed again.” Trump, the current frontrunner in the 2024 primary, skipped the debate and instead released an interview just before the event kicked off.

    Betting markets tracked by RealClearPolitics give Biden a 35% chance of winning the 2024 presidential election, while Trump is at 27% and DeSantis is at 6%.

    Stocks
    DJIA

    COMP
    were higher in choppy trading Friday after Federal Reserve Chair Jerome Powell warned that the central bank may need to raise interest rates even higher to temper a strong U.S. economy and quell inflation, while assuring investors that the Fed would proceed cautiously.

    From MarketWatch’s archives (Dec. 31, 2022): U.S. stocks log their worst year since 2008, crushed by Fed’s rate hikes

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  • Donald Trump’s mug shot, the new face of American political scandal

    Donald Trump’s mug shot, the new face of American political scandal

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    Former President Donald Trump has been charged with a litany of crimes over the past several months, but his status as defendant-in-chief has now been immortalized by a mug shot. 

    For those who believe Trump broke the law by arranging hush-money payments to a porn star, stealing classified documents, instigating a riot and trying to steal the 2020 election, the photo serves as a symbol of his criminal behavior. To the people who see Trump as the victim of politically-motivated prosecutions, the image signals that the nation’s legal system has been compromised by partisanship. 

    Either way, Trump’s mug shot marks a new era for American political scandal.   

    Read more: Trump surrenders, is booked in Georgia election-interference case

    Of course, Trump joins a long list of American politicians who have found themselves facing prosecution.

    From the founding of the republic to the current day, politicians being accused of wrongdoing has been an American tradition. The scope of cases runs across the political spectrum and the charges have ranged from sex scandals to bribery.

    Trump’s summer of scandal began in New York, where Manhattan District Attorney Alvin Bragg charged him with campaign-finance violations, claiming the former president made hush-money payments to a porn star and Playboy bunny to bury their stories of having had affairs with him. He was then hit with federal charges of illegally withholding classified documents at his Florida mansion after leaving office and for illegally working to disrupt the formal counting of the votes in Congress that confirmed his loss in the 2020 election.

    But it took until Trump’s fourth indictment on state charges in Georgia, alleging that he and 18 others conspired to illegally overturn the 2020 election in which he narrowly lost the state to Biden, for a mugshot to formally appear.

    Here’s a list of some recent, well-known politicians who have been arrested:

    Rod Blagojevich 

    (U.S. Marshals Service)

    Blagojevich served as the Democratic governor of Illinois from 2003 until 2009 when he was arrested, impeached and eventually sentenced to 14 years in prison for corruption.

    The case revolved around a “pay-for-play” scandal in which Blagojevich solicited a bribe in return for appointing someone to fill the U.S. Senate seat vacated by Barack Obama after he’d been elected president.

    Blagojevich was released in 2020 after Trump commuted his sentence.

    John Edwards

    (U.S. Marshals Service)

    The former Democratic vice presidential and presidential candidate was indicted in 2011 on charges that he used campaign money to cover up an extramarital affair and to pay to support a child that was born as a result. Edwards wasn’t convicted but the revelation that he had an affair while his wife was dying of cancer ended his political career.

    Tom DeLay

    (Harris County Sheriff’s Office)

    The onetime Republican House majority leader was indicted in 2005 by a Texas grand jury on campaign-finance and money-laundering charges. He stepped down as House speaker and opted not to seek reelection the following year. He was eventually convicted and sentenced to three years in prison but had the case overturned on appeal.

    John Mitchell

    (U.S. Marshals Service)

    The U.S. attorney general under President Richard Nixon served 19 months in prison for his role in helping plan and orchestrate the break-in of the Democratic Party’s national headquarters at the Watergate Hotel. The scandal would lead to Nixon’s resignation in 1974.

    Dennis Hastert

    (Lake County Sheriff’s Office)

    The Republican speaker of the House of Representatives from 1999 until 2007 was later sentenced to 15 months in prison for sexually abusing young boys while working as a high school teacher and coach in his home state of Illinois. At the time of his conviction in 2015, Hastert was the highest-ranking U.S. politician to ever be sentenced to prison time.

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