{"id":1675,"date":"2023-10-17T07:33:13","date_gmt":"2023-10-17T07:33:13","guid":{"rendered":"https:\/\/connectwithfund.com\/economy\/kevin-mccarthy-ousted-as-house-speaker-falling-after-historic-challenge-by-matt-gaetz\/"},"modified":"2023-10-17T07:33:14","modified_gmt":"2023-10-17T07:33:14","slug":"kevin-mccarthy-ousted-as-house-speaker-falling-after-historic-challenge-by-matt-gaetz","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=1675","title":{"rendered":"Kevin McCarthy ousted as House speaker, falling after historic challenge by Matt Gaetz"},"content":{"rendered":"
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The U.S. House of Representatives removed Rep. Kevin McCarthy from his post on Tuesday, as 216 members of his chamber voted in favor of ousting him while 210 supported him.<\/p>\n

Rep. Matt Gaetz of Florida led the challenge against his fellow Republican, filing what\u2019s known as a \u201cmotion to vacate\u201d late Monday, after McCarthy relied on House Democrats to pass a short-term measure that averted a partial government shutdown.<\/p>\n

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\u201cI don\u2019t think voting against Kevin McCarthy is chaos,\u201d Gaetz said in a speech Tuesday on the House floor. \u201cI think $33 trillion in debt is chaos. I think that facing a $2.2 trillion annual deficit is chaos. I think that not passing single-subject spending bills is chaos.\u201d<\/p>\n

GOP Rep. Patrick McHenry of North Carolina is now serving as the speaker pro tempore, or temporary speaker. <\/p>\n

Speaking at a press conference<\/a> Tuesday evening, McCarthy said he won\u2019t run for speaker again, and said he was \u201cfortunate to have served\u2026I wouldn\u2019t change a thing.\u201d<\/p>\n

Read more: <\/strong>Kevin McCarthy won\u2019t run for House speaker again, says he has no regrets<\/p>\n

Gaetz had said on Sunday that he expected Democrats were \u201cgoing to bail out\u201d McCarthy, meaning supported him enough to offset the opposition from Gaetz and some other Republicans, but the vote didn\u2019t play out that way.<\/p>\n

Eight Republicans joined with all Democrats to vote against McCarthy. The eight were Andy Biggs of Arizona, Ken Buck of Colorado, Tim Burchett of Tennessee, Eli Crane of Arizona, Gaetz, Bob Good of Virginia, Nancy Mace of South Carolina and Matt Rosendale of Montana. There were a few lawmakers who were absent, such as Democratic Rep. Nancy Pelosi of California, McCarthy\u2019s predecessor.<\/p>\n

Read more<\/strong>: Here\u2019s who could replace Kevin McCarthy as House speaker<\/p>\n

Until now, no House speaker had ever been removed by a motion to vacate. The move requires a simple majority of the House to succeed and can be triggered by a single member.<\/p>\n

Rep. Tom Emmer of Minnesota, who has been the No. 3 House Republican, was among the GOP lawmakers who spoke in favor of McCarthy.<\/p>\n

\u201cUnder Speaker McCarthy\u2019s leadership, our House Republican majority has actually defied all odds and over-performed expectations again and again and again,\u201d Emmer said on the House floor.<\/p>\n

There has been a view among analysts that a divided Washington\u2019s spending might not change that much even if Gaetz managed to oust McCarthy, as MarketWatch reported. <\/p>\n

About 80% of Congress looks likely to vote for a spending deal that would call for some increases in outlays, Ukraine aid, money for the U.S.-Mexico border and a new commission on the nation\u2019s debt, said Chris Krueger, managing director at TD Cowen\u2019s Washington Research Group, in a note. That agreement would come around when\u00a0a new deadline of Nov. 17\u00a0hits.<\/p>\n

U.S. stocks
\n SPX<\/p>\n

DJIA<\/p>\n

COMP
\n could end up taking a hit from the House\u2019s drama, according to Stifel\u2019s chief Washington policy strategist, Brian Gardner.<\/p>\n

\u201cRemoving Mr. McCarthy as Speaker could fuel temporary risk-off sentiment in the markets,\u201d Gardner wrote in a note Tuesday. He suggested that markets \u201cmight react negatively to government dysfunction.\u201d<\/p>\n

Stocks closed sharply lower Tuesday, after a report on job openings showed the labor market remains tight, leaving room for more interest-rate hikes.<\/p>\n

Read more:<\/strong> What McCarthy ouster means for markets as investors fret over congressional \u2018dysfunction\u2019<\/p>\n

A motion to vacate last went to a House vote in 1910, with then-Speaker Joseph Cannon surviving it and staying on as the chamber\u2019s leader. Such a motion was filed in July 2015 against then-Speaker John Boehner and not voted on by the House at that time, but Boehner went on to announce his resignation in September 2015. <\/p>\n

In addition, a motion to vacate was considered in 1997 but ultimately not used by a small group of House Republicans who had grown disgruntled with the leadership of then-Speaker Newt Gingrich. <\/p>\n<\/p><\/div>\n<\/div>\n