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Politics

McCarthy Turmoil Is Grim Omen for Debt Limit, Spending Talks

  • Demands by conservative hard-liners raise risk of US default
  • Any financial storm would strike a vulnerable US economy
Kevin McCarthy speaks to media as he leaves the House Chamber on January 4 in Washington, DC. 

Kevin McCarthy speaks to media as he leaves the House Chamber on January 4 in Washington, DC. 

Photographer: Tasos Katopodis/Getty Images
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The turmoil that has for three days stalled the start of the new Republican House majority offers a warning that disarray in Washington risks igniting a US debt crisis capable of roiling financial markets later this year.

The deadlock between establishment Republicans and dissident conservatives over choosing a House speaker laid bare the depth of division within the party, and the powerlessness of GOP leaders to force a compromise on recalcitrant members.