The San Francisco Chronicle reports on speculation that California Gov. Arnold Schwarzenegger (R) will challenge Sen. Barbara Boxer (D) in 2010.
"The governor regularly dismisses talk of another political run --
specifically for U.S. Senate -- as something he's just not interested
in, but recently he appeared to soften his words."
However, Phil Singer notes President Obama's appearance with the Schwarzenegger last week "wouldn't have taken place if political red
alarms were going off about Boxer's re-elect prospects. (She has a
double-digit lead over Schwarzenegger in a possible head-to-head.) Schwarzenegger's next
step is more likely some kind of White House appointment -- Obama gets a
pragmatist in his inner circle and scores bipartisan points for having
a Republican in the cabinet."