In an unexpected twist in the HUNTER BIDEN saga, the proposed plea deal between the president’s son and the DOJ fell apart in the courtroom this afternoon.AP: “President JOE BIDEN’s son Hunter pleaded not guilty Wednesday to two tax crimes after a plea deal with federal prosecutors unraveled during a court hearing following the judge’s concerns over the agreement. “Hunter Biden was charged last month with two misdemeanor tax crimes of failure to pay more than $100,000 in taxes from over $1.5 million in income in both 2017 and 2018, and he had made an agreement with prosecutors, who were planning to recommend two years of probation. That deal is now on hold.” NYT: “Under the terms of the [earlier] proposed agreement, Hunter Biden would not serve time in prison. But the judge who must approve the deal, MARYELLEN NOREIKA, questioned whether it meant that Mr. Biden would be immune from prosecution for other possible crimes — including violations related to representing foreign governments — in perpetuity.” When a top prosecutor said that preexisting deal would not immunize Biden from further prosecution, it prompted a sharp reply from Biden’s team … WSJ: “In response, Hunter Biden’s lawyer, CHRIS CLARK, said he disagreed with that interpretation, believed the agreement foreclosed the possibility of additional charges, and said: ‘As far as I’m concerned, the plea agreement is null and void.’ Mr. Clark then asked for a recess to try to hash out a compromise to salvage the deal, and the parties began furiously negotiating.” Judge Noreika: “I think having you guys talk more makes sense.” USA Today: “[Noreika’s] suggestion came after Rep. JASON SMITH, R-Mo., the chairman of the House Ways and Means Committee, urged Noreika to reject the plea deal based on the allegations from two Internal Revenue Service investigators of political favoritism in the case.” Yesterday, the Ways and Means Republicans filed a last-minute effort with the court, insisting Noreika consider the IRS investigators’ testimony alleging DOJ impropriety. AP: “Shortly after their motion was filed, a court clerk received a call requesting that ‘sensitive grand jury, taxpayer and Social Security information’ be kept under seal, according to an oral order from the judge. The clerk said the lawyer gave her name and said she worked with an attorney from the Ways and Means Committee but was in fact a lawyer with the defense team. “Noreika demanded the defense team show why she should not consider sanctioning them for ‘misrepresentations to the court.’ Defense attorneys responded that their lawyer had represented herself truthfully from the start and called the matter a misunderstanding.” More on that from Josh Gerstein MEANWHILE, ON CAPITOL HILL — “Speaker KEVIN McCARTHY raised impeachment during a closed-door GOP meeting on Wednesday, cautioning his members that Republicans would launch a probe [of President JOE BIDEN] only when — and if — they secured the evidence to justify one, according to three lawmakers in the room,” report Sarah Ferris, Olivia Beavers and Jordain Carney. “At the moment, McCarthy said, Republicans have not amassed enough evidence to start an impeachment inquiry, those three lawmakers said. The speaker further warned members not to overstate what they’ve uncovered so far against the president.” The speaker also promised to “follow the investigation wherever it goes,” Rep. KEVIN HERN (R-Okla.) tells CNN’s Manu Raju. “And if it warrants, high crimes and misdemeanors … then we move to impeachment at that point.” BRUTAL STORY FOR DeSANTIS — “RON DeSANTIS scrapped two Hamptons fundraisers last weekend due to a lack of interest,” NY Post’s Lydia Moynihan reports. “As On The Money previously reported, DeSantis had cut in half — from $6,600 per person to $3,300 — the price to attend the July 20 fundraiser in Southampton. … [T]he campaign canceled plans for two other events because ‘they couldn’t find hosts,’ a source with knowledge told On The Money. ‘The DeSantis experiment is dead,’ one source said. ‘Donors aren’t coming to his events because they don’t see any return on investment.’” Thought bubble: It seems especially notable that this piece was reported by the NY Post. Could it be another sign that RUPERT MURDOCH is cooling on the Florida governor? FED UP — Federal Reserve officials are expected to resume their aggressive interest rate hikes today in an ongoing attempt to curb inflation. Economists predict the increase would boost the current rate by a quarter of a percentage point, marking the highest rate hike in 22 years and the 11th rate increase over the past year and a half. Fed Chair JEROME POWELL is expected to hold a press conference following the group’s policy meeting. More from Reuters STAFFING UP — Meanwhile, President Biden announced his nominee to lead the Social Security Administration: former Maryland Governor and 2016 Democratic presidential candidate MARTIN O’MALLEY, WaPo’s Jeff Stein and Erin Cox report. Good Wednesday afternoon. Thanks for reading Playbook PM. Drop me a line: birvine@politico.com.
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