Bret Baier gave his take on "Outnumbered" after House Majority Leader Kevin McCarthy (R-Calif.) dropped out of the race for House Speaker. 

In a stunning announcement just hours before an election he was expected to win, McCarthy said "it's not his time" and that he's not the right person to lead right now. 

McCarthy issued the following statement:

I have the deepest respect and regard for each Member of the Conference and our team as a whole. It is imperative for us to unite and work together on the challenges facing our country. Over the last week it has become clear to me that our Conference is deeply divided and needs to unite behind one leader. I have always put this Conference ahead of myself. Therefore I am withdrawing my candidacy for Speaker of the House. I look forward to working alongside my colleagues to help move our Conference’s agenda and our country forward. 

Rep. Darrell Issa said he expects McCarthy will stay on as Majority Leader.

Baier said McCarthy's gaffe on the Benghazi Committee and Hillary Clinton will go down in history as being the "devastating" blow for his candidacy.

"The fact that Hillary Clinton is running ads, the fact that it has been nonstop talked-about, the fact that he has had to come out not once but twice, and walk those statements back. And the first time he did it, he did that inartfully. It has been devastating," he said.

In an interview on "Hannity," McCarthy said, "Everybody thought Hillary Clinton was unbeatable, right? But we put together a Benghazi special committee, a select committee. What are her numbers today? Her numbers are dropping."

Clinton and her supporters quickly seized on the comment, arguing that it proves Democrats were right in saying that the Benghazi Committee is politically-motivated.

Former VP candidate Paul Ryan was quickly mentioned as a possible Speaker candidate, but he has already said he will not run. 

Watch Bret's analysis of the announcement above, and tune in tonight at 6p ET to "Special Report" for much more.