Mike Johnson was reelected Speaker of the House Friday, relying on President-elect Donald Trump to convert Republican opponents into supporters. The outcome demonstrated House Republicans’ weakness and Trump’s strength, indicating Trump’s intercession will be necessary to advance his agenda in the House. John Thune assumed the majority leadership in the Senate.
The House and Senate will meet in joint session on Monday to count the votes of the Electoral College and certify Trump’s election.
In his first 14 months as Speaker, Mike Johnson proved to be an able leader, asserting partisanship when needed and forging bipartisan compromises when it served the country. Friday’s drama spotlights the divisions among House Republicans that Johnson will need Trump’s help to unify, suggesting an unusual amount of presidential attention to House day-to-day affairs to keep the Republican agenda moving.
New Senate Majority Leader Thune’s leadership is untested. Except for confirmations and reconciliation bills, he will need bipartisan compromises with Democrats to pass legislation. Should President Trump be distracted by the House or other matters, those agreements could face last-minute presidential opposition – eroding Thune’s reliability to make deals with Democrats.
Speaker Johnson told colleagues Saturday that Trump wants to pursue reconciliation legislation as a massive single bill rather than two, as preferred by Senate Republicans. The single bill approach would probably delay any big win until Spring but include most of Trump’s tax, immigration and spending priorities. It would likely forgo a fast February accomplishment on immigration, with bipartisan potential, that could build political capital and momentum for a second bill in May dealing with taxes and spending.
Since the Federal Reserve cut interest rates, bond and mortgage rates have risen, suggesting investors anticipate fewer rate cuts, sticky inflation, and a higher deficit – leading them to demand more yield to compensate for the risks.
