Balance of Power

Insight & analysis on the White House and Capitol Hill.
Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.
US midterm elections were already shaping up to be a key risk for AI-related stocks amid a backlash against data centers. But with a growing number of lawmakers from both parties sounding the alarm on the need for AI safety regulations, the stakes have only gotten higher.

Optimism about AI has powered the stock-market rally for the better part of four years amid soaring spending on computing infrastructure. That trade, however, is on shaky ground after Anthropic PBC and OpenAI both pledged to slow development of their most advanced models following a series of warnings from within the industry about its ability to control the technology.

The Philadelphia Stock Exchange Semiconductor Index, better known as the SOX, tumbled nearly 6% on Monday, its worst day in more than two months. Former President Barack Obama called for AI policy to be “at the center of our public debate,” in a statement Monday evening. Meanwhile, senators including John Thune, Ted Cruz, Bernie Sanders and Amy Klobuchar have all proposed a range of policy measures aimed at addressing AI safety concerns.
Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:
Bloomberg Senior Editor for Technology and Strategic Industries Michael Shepard.
Stonecourt Capital Partner Rick Davis and Harvard Kennedy School Ash Center Visiting Democracy Fellow Jeanne Sheehan Zaino.
See omnystudio.com/listener for privacy information.

Bloomberg's Tom Keene, Jon Ferro and Lisa Abramowicz discuss remarks from Fed Chair Kevin Warsh following the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance.
The Federal Reserve raised interest rates by a quarter percentage point and penciled in an additional hike later this year, steps aimed at containing inflation that will test Chairman Kevin Warsh’s relationship with President Donald Trump.
Wall Street traders drove stocks to the lowest since July on bets the Federal Reserve will keep raising rates to combat inflation after delivering its first hike in three years.
In his remarks to reporters, Fed Chair Kevin Warsh restated his concerns over inflation, saying too many categories of products and services were showing annualized price gains above 3% on a 6- and 12-month basis.
See omnystudio.com/listener for privacy information.

Insight & analysis on the White House and Capitol Hill.
Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.
President Donald Trump’s opposition to guardrails on artificial intelligence puts him at odds with a growing number of lawmakers from both parties, with AI safety fears adding to voters’ misgivings about the technology heading into the midterm elections.

In a rapid-fire series of social media posts, Trump on Monday belittled a push led by Anthropic PBC and OpenAI to slow work on cutting-edge systems, invoking bombastic language to dismiss existential fears about AI as “a hoax.” Later in the day, he made an impromptu call to Nvidia Corp. Chief Executive Officer Jensen Huang, who was onstage at a technology conference and put their conversation on speakerphone.

“The robots will not be taking over. AI will not be taking over the rest of the world,” Trump told Huang, who was a featured guest at the All-In summit in Los Angeles. “We have to do things, and we have to do them prudently, but that doesn’t mean we’re going to stop an industry.”
Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:
Bloomberg International Economics and Policy Correspondent Michael McKee.
Former US Secretary of State Antony Blinken.
Stonecourt Capital Partner Rick Davis and Harvard Kennedy School Ash Center Visiting Democracy Fellow Jeanne Sheehan Zaino.
Groundwork Collaborative Senior Fellow Kitty Richards.
See omnystudio.com/listener for privacy information.

Insight & analysis on the White House and Capitol Hill.
Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.
President Donald Trump attacked Anthropic PBC Chief Executive Officer Dario Amodei for urging a slowdown in artificial intelligence development, intensifying his opposition to new guardrails for the technology.

In a Monday social media post, Trump blamed a “SICK conspiracy” for voter backlash on AI data centers and increased concern about frontier models, adding that “the only one that is happy about it is China.”

“The only control or ‘guardrails’ that AI needs is a STRONG AND SMART (High IQ!) PRESIDENT, and the U.S.A. has that, in spades!” Trump posted. “We are leading China, and all others, and will continue to do so. Conspiracy Theorists, Treasonists, Traitors, and Leakers, BEWARE!”
Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Kailey speaks with:
Bloomberg News White House and Washington Correspondent Jeff Mason.
Stonecourt Capital Partner Rick Davis and Bully Pulpit International Managing Partner Adam Hodge.
Bloomberg News Ottawa Bureau Chief Brian Platt.
Bloomberg Washington Correspondent Tyler Kendall.
Bloomberg News National Security Team Leader Wendy Benjaminson.
Committee for a Responsible Federal Budget President Maya MacGuineas.
See omnystudio.com/listener for privacy information.

Bloomberg News' Ottawa Bureau Chief Brian Platt sits down with Canadian Prime Minister Mark Carney ahead of the country's first national investment summit in Toronto. Carney says he thinks it’s still possible for the US and Canada to reach a “mutually advantageous” deal that would reduce trade barriers. He notes that Canada is "ready to sit down and negotiate that and move it forward". Carney adds that he welcomed President Trump’s comments over the weekend that he believed the countries could reach an agreement fairly soon. He also discusses the need to strengthen AI guardrails and more.
See omnystudio.com/listener for privacy information.