Balance of Power

A look at the $87.6 billion supplemental spending request from the White House, which would earmark most of that to the Department of Defense and the conflict with Iran, led Bloomberg Intelligence's July 29 Washington Policy Pulse. However, the request may get a frosty reception on Capitol Hill from both sides of the aisle. Democrats will likely oppose any larger request tied to the conflict with Iran and Republicans may be concerned with messaging ahead of the US midterms. And while $11 billion in farm aid that was included in the request would have bipartisan support, it's inclusion in a larger bill makes it less of a chance of passing in 2026. Increased defense spending, if enacted, would likely be tied to counter-drone and anti-missile technology, aiding contractors like Lockheed Martin, RTX and Northrop Grumman.
Finally, we gave a slight preview of the Supreme Court's decision on the Federal Reserve Lisa Cook case, as well as highlighted upcoming legislation and hearings in July tied to artificial intelligence. While US policy on AI remains high-level and "light-touch", there is growing dissent with the sector with both Republicans and Democrats.
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Insight & analysis on the White House and Capitol Hill.
Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.
A closely divided US Supreme Court reinforced the Federal Reserve’s independence from the White House, protecting governors from being fired by the president without proof of wrongdoing.

The Fed shield came even as the court in a separate ruling Monday expanded the president’s power to fire top government officials at other federal agencies in a blockbuster ruling that overturns a 91-year-old precedent.

Voting 5-4, the high court said Fed Governor Lisa Cook can stay in her job while she fights Trump’s bid to oust her over unproven mortgage fraud allegations. Writing for the majority, Chief Justice John Roberts pointed to what he said was a long tradition of keeping the Fed’s exercise of monetary policy independent from the White House.
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 Washington Correspondent Tyler Kendall.
Former Acting White House Chief of Staff Mick Mulvaney.
Stonecourt Capital Partner Rick Davis and Hicks Evaluation Group CEO Fredrick Hicks.
Constitutional Accountability Center President Elizabeth Wydra.
Bloomberg International Economics and Policy Correspondent Michael McKee.
Republican Congresswoman Nicole Malliotakis of New York.
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The US Supreme Court ruled that Federal Reserve Governor Lisa Cook can stay in her job for now, reinforcing the central bank’s independence from the White House and dealing a setback to President Donald Trump.
In a separate ruling, the court expanded the president’s power to fire top government officials at other federal agencies.
Voting 5-4, the high court said Cook can remain at the Fed while she fights Trump’s bid to oust her over unproven mortgage fraud allegations. Chief Justice John Roberts and Justice Brett Kavanaugh joined the three liberals in the majority.
Bloomberg's Paul Sweeney and Scarlet Fu got reaction from:
June Grasso, Bloomberg Law Host
Elliot Stein, Bloomberg Intelligence litigation analyst
Tyler Kendall, Bloomberg Washington correspondent
Gautam Mukunda, Lecturer at Yale School of Management and Bloomberg Opinion contributor
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Insight & analysis on the White House and Capitol Hill.
Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.
US President Donald Trump accused Iran of violating their ceasefire agreement by firing at cargo ships transiting the Strait of Hormuz, underscoring how unsettled the situation remains in a waterway critical to global energy flows.

In a social media post Friday, Trump said “at least four” one-way attack drones targeted ships in the strait and that one of them “solidly hit the upper deck of a large and very expensive” cargo ship.

The vessel was “able to proceed,” Trump said, adding that the other three drones were downed.
“Obviously, this is a foolish violation of our Ceasefire Agreement,” the president posted, without saying what the consequences of a violation might be.
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 Washington Correspondent Tyler Kendall.
Democratic Congresswoman Madeleine Dean of Pennsylvania.
Stonecourt Capital Partner Rick Davis and Harvard Kennedy School Ash Center Visiting Democracy Fellow Jeanne Sheehan Zaino.
Rear Admiral Mark Montgomery (Ret.), Foundation for Defense of Democracies Senior Fellow.
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Insight & analysis on the White House and Capitol Hill.
Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.
Tensions between Donald Trump and US Senate Republicans crescendoed to a fever-pitch during a Wednesday lunch after a 24-hour exchange that saw lawmakers rebuke the president over the war with Iran while he abruptly canceled a signing ceremony for legislation that the GOP sees as essential to its midterm election efforts.

Trump refused to sign a bipartisan housing bill before attending a private luncheon with lawmakers at the US Capitol. A day earlier, as Trump was holding a campaign rally in Pennsylvania, the Republican-led Senate for the first time passed a largely symbolic measure to curb his ability to wage war with Iran.

US Senator John Kennedy, a Louisiana Republican, told reporters that Trump was “mad as a murder hornet” at the war powers vote because it undermined his ongoing negotiations with Iran.
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 Washington Correspondent Tyler Kendall.
NATO Secretary General Mark Rutte.
Former US Ambassador to NATO Kay Bailey Hutchison.
Harvard Kennedy School Ash Center Visiting Democracy Fellow Jeanne Sheehan Zaino and American Principles Project Political Director Katie Frost.
Taxpayers for Common Sense President Steve Ellis.
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