THE SHOW NOTES: The Debt Deal, Players Revolt, & More Trump Rants

Welcome! Chick-fil-A sparked outrage by hiring a VP of diversity.

OUCH: Amazon workers are planning a mass walk-out today.

NEW: Utah Rep Chris Stewart to resign from House, shrinking GOP majority.

2024: Chris Christie is running for President.

DATA: Bud Light sales are down 30%.

The Biden-McCarthy Deal

A debt ceiling bill agreed upon by President Biden and House Speaker Kevin McCarthy will likely pass a formal House vote later tonight following a last-minute conservative revolt that appears to have failed.

What happened: A small number of conservatives floated the threat of filing a motion to vacate deeming the debt agreement negotiated between McCarthy and President Biden was insufficiently conservative. This threat was largely put to rest by fellow House Freedom Caucus members Jim Jordan, Ralph Norman, and Thomas Massie. As of Tuesday evening, about 30 Republicans said they would not support the bill while a few dozen more claimed to be undecided.

Who is voting for this: McCarthy claims a “majority of the majority” will support this bill with his team estimating 150 of the 222 House Republicans will vote yes. McCarthy needs a majority of Republicans to support the bill in order to kill the conservative claims that the bill is insufficiently aggressive. Meanwhile, the White House is pressing Democrats to support the bill in order to give the President a budgetary win to fight his historically low approval rating.

A problem: The nonpartisan Congressional Budget Office claimed the McCarthy plan to require work requirements for certain social welfare benefits would raise federal spending on nutrition programs. Former Trump OMB Director Russ Vought said, “The gang can’t shoot straight, folks. Work requirements are supposed to save money.” Go read this piece on work requirements.

The banking strain: Politico argues that a successful debt ceiling deal could add additional pressure to a fragile banking system. After a deal is made, the US Treasury will rapidly resume issuing more debt in order to refill its historically low coffers. The practice will add pressure to the banking system in two ways:

First, it will ratchet up competition by encouraging businesses and households to invest in U.S. debt rather than keeping deposits in banks, where they will earn comparatively lower yields. If banks are then forced to raise interest rates to keep attracting depositors, their profit margins will shrink and rates could rise further on all manner of consumer and business loans that they give out.

Second, a rush of U.S. government borrowing will diminish the overall amount of reserves that banks have access to at the Fed, in effect sucking money out of the financial system, further pushing up rates.

MLB Players: Just Let Us Play Baseball

Following the Dodgers’ decision to welcome an anti-catholic group to their LGBTQ pride night, multiple players have contacted the MLB Players Association to protest the incursion of social issues into sports.

Dodgers veteran pitcher Clayton Kershaw led the revolt against the team’s decision to welcome the anti-catholic Sisters of Perpetual Indulgence by demanding the team host a Christian Faith and Family Day.

Related: A Toronto Blue Jays pitcher was forced to issue an apology for publically supporting the boycotts against Target and Bud Light.

Trump Rants

Rant 1: Donald Trump called his former press secretary Kayleigh McEnany “Milktoast” for citing polling numbers he deemed false in a Fox News appearance.

Rant 2: Donald Trump claimed that New York Governor Andrew Cuomo did a better job at managing COVID than Ron DeSantis did in Florida despite the Sunshine State having shorter lockdowns and fewer deaths.

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🔥 Trending news:

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• Ramaswamy fires consultants who worked simultaneously for LIV golf - Politico

• NASA’s UFO Research Team Briefs the Public - WSJ (paywall)

• Restart of Student Loan Payments Included in Debt-Ceiling Deal - Bloomberg (paywall)

• Drones Hit Residences in Moscow for First Time in Ukraine War - WSJ (paywall)

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