On the early edition of Balance of Power, Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz discuss the latest from the Middle East. On today's show, former Republican Congressman Patrick McHenry, Stonecourt Capital Partner Rick Davis, Harvard Kennedy School Ash Center Visiting Democracy Fellow Jeanne Sheehan Zaino and CIBC Private Wealth Senior Energy Trader Rebecca Babin. Chapters 00:00:00 Balance of Power: Early Edition  00:00:55 Oil, PPI & the Fed Rate Outlook 00:02:14 Markets & S&P 500 Record High 00:03:54 U.S.-Iran Tensions & Strait of Hormuz 00:05:01 Treasury Auction Hits Highest Yield Since 2001 00:07:04 U.S. Weapons Stockpiles & Drone Production 00:07:36 Karoline Leavitt’s Departure from the White House 00:08:49 Patrick McHenry on Bonds, Debt & the Economy 00:11:51 CLARITY Act, Stablecoins & the Banking Industry 00:16:09 Capital Gains Tax Relief & Midterm Messaging 00:20:45 Data Centers Become a Midterm Election Issue 00:22:20 Political Panel on Data Centers & Utility Costs 00:24:17 Bipartisan Backlash Against Data Centers 00:27:07 Data Center Moratoriums & the 2026 Elections 00:27:57 “Bring Your Own Power” & Data Center Regulation 00:29:29 Power, Water & the Future of Data Centers 00:32:34 Bonds, Inflation & Another S&P 500 Record 00:34:34 What’s Driving the “Everything Rally” 00:36:42 AI, Stocks & the Goldilocks Market 00:38:53 Rebecca Babin on the Oil Market 00:40:55 Why Oil Traders Are Taking Profits 00:42:16 China’s Role in Global Oil Demand 00:43:46 Refinery Risks, Diesel & Fuel Prices 00:47:21 U.S. Military Presence in the Middle East -------- More on Bloomberg Television and Markets Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9 Visit http://www.bloomberg.com for business news & analysis, up-to-the-minute market data, features, profiles and more. Connect with Bloomberg Television on: X: https://twitter.com/BloombergTV Facebook: https://www.facebook.com/BloombergTelevision Instagram: https://www.instagram.com/bloombergtv/ Connect with Bloomberg Business on: X: https://twitter.com/business Facebook: https://www.facebook.com/bloombergbusiness Instagram: https://www.instagram.com/bloombergbusiness/ TikTok: https://www.tiktok.com/@bloombergbusiness?lang=en Reddit: https://www.reddit.com/r/bloomberg/ LinkedIn: https://www.linkedin.com/company/bloomberg-news/ More from Bloomberg: Bloomberg Radio: https://twitter.com/BloombergRadio Bloomberg Surveillance: https://twitter.com/bsurveillance Bloomberg Politics: https://twitter.com/bpolitics Bloomberg Originals: https://twitter.com/bbgoriginals Watch more on YouTube: Bloomberg Technology: https://www.youtube.com/@BloombergTechnology Bloomberg Originals: https://www.youtube.com/@business Bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake Bloomberg Espanol: https://www.youtube.com/@bloomberg_espanol Bloomberg Podcasts: https://www.youtube.com/@BloombergPodcasts