特朗普拟对伊发动经济D日，美债突破40万亿美元

THIS IS "BALANCE OF POWER," LIVE FROM WASHINGTON, D.C. KAILEY: TONIGHT, THE TREASURY SECRETARY, SCOTT BESSENT, SAYS MORE STEPS ARE COMING TO TACKLE LONG-TERM YIELDS AFTER 30-YEAR BONDS GAVE BACK GAINS. BESSENT DISMISSED THE MOVE AS NOISE, SAYING THE ADMINISTRATION STILL HAS A BIG TOOLKIT TO BRING BORROWING COSTS DOWN. PLUS, PRESIDENT TRUMP ANNOUNCES A NEW CRUSHING CAMPAIGN AIMED AT CRIPPLING IRAN'S ECONOMY BUT OFFERS NO DETAILS.

BESSENT IS EXPECTED TO LAY OUT THE PLAN MONDAY AS IRAN DISMISSES THE THREATS. TRADING OFFICIALS ARE BACK AT THE NEGOTIATING TABLE RACING TO LOCKDOWN A DEAL WITH TRUMP ADMINISTRATION AFTER THE PRESIDENT GAVE BOTH SIDES THREE DAYS TO AVERT A NEW ROUND OF 50% TARIFFS. FROM BLOOMBERG'S WASHINGTON, D.C., STUDIOS TO BLOOMBERG AND TV AUDIENCES WORLDWIDE, I'M KAILEY LEINZ AND THIS IS "BALANCE OF POWER." SCOTT BESSENT SAYING HE'S PREPARED TO EXPAND BONDS EVEN FURTHER AND IS TEASING A NEW FISCAL INITIATIVE A DAY AFTER HIS DEPARTMENT ANNOUNCED THE NATIONAL DEBT SURPASSED $40 TRILLION.

LET'S GO TO JEFF MASON WHO IS STANDING BY WITH MORE FROM THE WHITE HOUSE NORTH LAWN. YOU HAVE THE ABILITY TO QUESTION THE TREASURY SECRETARY ABOUT THIS TODAY. WHAT DID HE TELL YOU?

I DID AND ASKED ESSENTIALLY IF HE HAD MORE PLANTS BECAUSE OF WHAT YOU WERE JUST SAYING. BECAUSE THE ACTION THE TREASURY TOOK YESTERDAY HAD A PRETTY SHORT-TERM EFFECT WITH YIELDS RESPONDING AND THEN COMING BACK TO WHERE THEY WERE 24 HOURS LATER. HE DID USE THAT NOISE QUOTE THAT YOU REFERENCED, AND I THINK IT IS A SIGN GENERALLY UP FRUSTRATION HERE, AT LEAST WITHIN THE ADMINISTRATION AND PERHAPS WITHIN TREASURY, THAT IT DID NOT HAVE A GREATER IMPACT, BUT THE SIGNAL HE GAVE IN THE CNBC INTERVIEW IS THAT THEY HAVE MORE TOOLS IN THE TOOLBOX.

AGAIN, ALL THAT REFERENCING THE FACT THAT WHAT THEY DID YESTERDAY DID NOT REALLY WORK. KAILEY: I'M ALSO CURIOUS WHAT YOU EXPECT WE WILL HEAR FROM THE TREASURY SECRETARY, NOT ON THIS BUT ON MEASURES AGAINST IRAN, AS HE PROMISED A PRESS CONFERENCE MONDAY AFTER THE PRESIDENT ANNOUNCED MEASURES THAT HE SAID WOULD BRING ECONOMIC D-DAY ON IRAN. WHAT EXACTLY COULD THIS LOOK LIKE? JEFF: GOOD QUESTION. I SPOKE TO A WHITE HOUSE OFFICIAL ABOUT THAT, TOO, DID NOT WANT TO GIVE A LOT OF DETAIL SPECIFICALLY SAYING IF THEY WENT OUT, WHO OR WHAT MIGHT SANCTIONED AND THOSE INDIVIDUALS OR ENTITIES MIGHT HAVE AN ABILITY TO PREPARE FOR THAT.

THAT SEEMED TO ME AT LEAST TO HINT THAT SANCTIONS ARE PART OF THAT TOOLBOX, BUT THAT IS PROBABLY FAIRLY OBVIOUS. THEY ARE WORKING ON PUTTING THAT TOGETHER, AND I THINK, BROADLY, IT IS ALSO IMPORTANT TO NOTE THIS IS A COMPLETELY NEW PHASE FOR PRESIDENT TRUMP WITH REGARD TO THE IRAN CONFLICT. HE STARTED THIS WAR ALONG WITH ISRAEL ROUGHLY SIX MONTHS AGO, HAS DECLARED VICTORY A HANDFUL OF TIMES, BUT IT IS REALLY STILL ONGOING, EVEN THOUGH HE IS READY TO GET OUT AND READY FOR THE FIGHTING NOT TO BE THE MAIN HEADLINE.

THE ECONOMIC PRESSURE IS THE NEXT STEP. WE WILL SEE IF ANY OF THE STEPS FROM THE ECONOMIC TOOLBOX END UP REALLY MAKING A DIFFERENCE. IT IS IMPORTANT TO NOTE IRAN HAS FACED PRESSURE FROM THE UNITED STATES AND THE REST OF THE INTERNATIONAL COMMUNITY FOR DECADES. KAILEY: BASICALLY HALF A CENTURY. BLOOMBERG'S JEFF MASON LIFE AT THE WHITE HOUSE TONIGHT. THANK YOU. JOINING US NOW IS REPUBLICAN CONGRESSMAN MICHAEL LAWLER OF NEW YORK WHO SERVES ON THE HOUSE FOREIGN AFFAIRS COMMITTEE AND HOUSE FINANCIAL SERVICES COMMITTEE AND JOINS US LIVE FROM BLOOMBERG WORLD HEADQUARTERS IN NEW YORK CITY.

WELCOME BACK TO BLOOMBERG. I WOULD LIKE TO BEGIN, IF WE CAN, WITH A NUMBER WE SAW YESTERDAY. $40 TRILLION NOW AND BUILDING IS OUR NATIONAL DEBT. THE TREASURY SECRETARY IS OBVIOUSLY TRYING TO TAKE SHORT-TERM STEPS TO ADDRESS THE RISING BORROWING COST THAT HAS BROUGHT WITH IT, BUT WHAT ELSE NEEDS TO BE DONE? WHAT IS THE RESPONSIBILITY OF CONGRESS TO ADDRESS THAT? REPRESENTATIVE LAWLER: ANY TIME YOU TRY TO ACT ON EXPENDITURES, THE POLITICS BEGINS, AND WE SEE THAT IN MY OWN RACE WHERE I'M BEING ATTACKED CONSISTENTLY ON THE SPENDING REDUCTIONS WE MADE REMOVING WASTE, FRAUD, AND ABUSE, BUT THE FACT IS THAT WHEN WE ARE AT $40 TRILLION IN DEBT, RUNNING TO TRILLION DOLLARS PLUS DEFICITS, PAYING $1 TRILLION IN INTEREST, THIS IS A CRISIS, AND I THINK IT IS INCUMBENT ON REPUBLICANS AND DEMOCRATS IN WASHINGTON TO GET SERIOUS ABOUT, NOT FROM A POLITICAL STANDPOINT BUT FROM A GOVERNMENTAL STANDPOINT, AND WORK TO FIND WAYS TO REDUCE EXPENDITURES.

OUR TAX REVENUE IS AT AN ALL-TIME HIGH. DEMOCRATS CONSISTENTLY ARGUED THAT WE NEED TO INCREASE TAXES ON THE WEALTHIEST, BUT THE FACT IS THAT OUR REVENUE CONTINUES TO HIT ALL-TIME HIGHS UNDER THE CURRENT TAX LAW, AND YET EXPENSES HAVE GONE UP SIGNIFICANTLY. UNDER THE BIDEN ADMINISTRATION, YOU SAW $5 TRILLION IN NEW MONEY BEING SPENT, WHICH MEANT THEY HAD MORE BORROWING, WHICH MEANT THAT THEY HAD TO PRINT MORE MONEY. FUNDAMENTALLY, THAT DROVE UP INFLATION.

WE HAD A CUMULATIVE EFFECT OF 21% INFLATION OVER THOSE YEARS, SO WE ARE WORKING TO TURN THE TIDE HERE. IT WILL NOT BE FIXED OVERNIGHT, BUT I THINK THERE ARE REAL CHALLENGES THAT WE HAVE TO TACKLE, NOT JUST BETWEEN NOW AND NOVEMBER, BUT OBVIOUSLY OVER THE NEXT TWO YEARS, AS WE REALLY ADDRESS THE ISSUE OF OUR NATIONAL DEBT. THIS IS NOT SUSTAINABLE, AND I THINK MOST RATIONAL PEOPLE ACKNOWLEDGE THAT. KAILEY: YOUR POINT IS WELL TAKEN THAT DEBT DID CLIMB DURING THE BIDEN ADMINISTRATION, THE WE SHOULD ADD ONE BIG BEAUTIFUL BILL WILL ADD TRILLIONS TO THE DEFICIT ACCORDING TO THE CONGRESSIONAL BUDGET OFFICE, AND WE HAVE SEEN THE DEBT KEEP CLIMBING SINCE TRUMP HAS BEEN BACK IN OFFICE -- REP.

LAWLER: JUST ON THAT POINT, I WOULD POINT OUT ONE THING -- REVENUE CONTINUES TO HIT ALL-TIME HIGHS. REVENUE HITS ALL-TIME HIGHS BUT THE DEFICIT GROWS, THAT MEANS EXPENDITURES ARE OUTPACING REVENUE AND THAT MEANS CONGRESS NEEDS TO GET SERIOUS ABOUT IT. KAILEY: WHAT ABOUT SOCIAL SECURITY AND ENTITLEMENT PROGRAMS? IS THAT REALISTICALLY WHAT NEEDS TO BE CUT? HOW DO YOU GET A HANDLE ON THAT PROBLEM?

IT IS NOT A FUNCTION OF CUTTING IT. WE WANT TO GET A HOLD OF THESE PROGRAMS AND SUSTAIN THEM FOR THE FUTURE. SOCIAL SECURITY AND MEDICARE OUTLAYS WILL INCREASE AS THE BABY BOOMER GENERATION REACHES THE AGE OF RETIREMENT, WHICH THEY HAVE. THE HEALTH NEEDS OF THAT POPULATION GROWS, AND SO THE QUESTION IS HOW DO YOU ADDRESS THE REVENUE SIDE OF IT? ONE OF THE THINGS THAT BILL CASSIDY HAS TALKED ABOUT IS TAKING ALL NEW OFFSHORE OIL LEASES AND PUTTING THOSE FUNDS DIRECTLY INTO THE SOCIAL SECURITY TRUST FUND, WHICH WOULD OBVIOUSLY GIVE A NEW REVENUE STREAM TO THE TRUST FUND AND HELP SUSTAIN IT.

WE NEED TO SIT DOWN IN A BIPARTISAN WAY. I HAVE BEEN SITTING DOWN WITH MY DEMOCRATIC AND REPUBLICAN COLLEAGUES FOR MONTHS, AND WE HAVE BEEN TALKING PRECISELY ABOUT THIS, BUT IT WILL REQUIRE ACTION, IN THE NEXT CONGRESS IN PARTICULAR. WE HAVE ALREADY SEEN IF WE DO NOTHING, THERE WILL BE AN AUTOMATIC REDUCTION IN BENEFITS WITH SOCIAL SECURITY IN THE NEXT SIX YEARS, AND THAT I DON'T THINK ANYONE SUPPORTS. CERTAINLY NOT ME.

KAILEY: THE CLOCK IS TICKING IN THAT DIRECTION VERY FAST. I WANT TO ASK ABOUT ANOTHER ISSUE WE HAVE SPENT A LOT OF TIME TALKING ABOUT ON BLOOMBERG THE LAST FEW DAYS. THE QUESTION AROUND CORRECT POLICY FOR DATA CENTERS. THERE HAS BEEN MASSIVE BIPARTISAN PUSH BACK IT SEEMS AGAINST DATA CENTERS. YOU HAVE A REPUBLICAN CANDIDATE FOR SENATE CALLING FOR A ONE-YEAR MORATORIUM. WE HAVE SEEN A MORATORIUM PUT IN PLACE IN YOUR STATE OF NEW YORK.

IS THAT WHAT YOUR CONSTITUENTS ARE DEMANDING RIGHT NOW? REP. LAWLER: NUMBER ONE, THERE IS GREAT CONCERN ABOUT THE IMPACT OF THESE LARGE-SCALE DATA CENTERS ON OUR ENERGY SUPPLY, ON WATER USAGE, AND I THINK, FRANKLY, THE ENERGY HAS -- THE INDUSTRY HAS DONE A TERRIBLE JOB OF ARTICULATING WHY THESE DATA CENTERS ARE NECESSARY, ESPECIALLY WITHIN THE AI SPACE, BUT I THINK FUNDAMENTALLY A FEW THINGS. NUMBER ONE, I SUPPORT THE RIGHT OF LOCAL COMMUNITIES TO MAKE THEIR OWN ZONING AND PLANNING DECISIONS AND MAKE A DETERMINATION ABOUT IF THIS IS SOMETHING THEY WA